DOHA: Family Business Council – Gulf (FBCG), a regional association of the Family Business Network (FBN) have launched a guide in cooperation with PricewaterhouseCoopers (PwC) to help family businesses in the Middle East successfully plan and navigate scenarios of shareholder exit in the family business.
For family-owned businesses in the Middle East, and the GCC in particular, handover from the first to the second generation, and increasingly from the second to the third generation can present unique challenges, which can have tremendous implications on the sustainability and growth of many of the region’s largest companies. The newly published guide provides a roadmap through succession challenges, and is designed to help family businesses navigate potential divergence and differences in family members’ interests and goals, understand the opportunities and challenges of the shareholder exit process, and plan for an optimized outcome that preserves both business continuity and family unity.
The surveys, which were conducted across the Gulf and the Middle East, revealed that despite being aware of the challenges and sensitivities involved, many family businesses do not have adequate plans in place to address shareholder exits. This absence of essential documentation can often leave room for ambiguity and complication for those looking to address challenges or conflicts in family dynamics.
PwC Partner and private business leader Imad Shahrouri, spoke on the partnership between PwC and the Family Business Council – Gulf as a whole, commenting: “We recognize that family businesses have always been an engine for growth and their success translates into prosperity for the Middle East region. Family businesses show higher profitability in the long run and have a more long-term strategic outlook. Our goal is to help family businesses maintain their values and legacy while unlocking their maximum potential to achieve a competitive advantage in times of transformation.” Amin Nasser, PwC’s senior advisor on Middle East private and family business also shared his insights on working with family-owned businesses, remarking that “The unique dynamics of family-owned businesses become particularly apparent in the case of a family member deciding to leave the business. Navigating an exit process can be a challenge and common cause for family conflict. We worked with FBCG to develop a brief yet comprehensive overview of the process, so that family businesses are prepared to create a healthy exit process by setting family constitutions and documentation that allows the business’ future to remain intact while balancing financial security and personal freedoms for all family members.” The publication will be available in April 2019 on respective company websites, and will provide family businesses with guidance on developing the necessary plans for governance, legalization and enforcement, and corporate structure, identifying ideal right exit routes, committing to transparency and communication, and taking advantage of expert advice on moving forward.
