Soaring Markets Trigger Family Disputes
Business family feuds re-emerge each time market valuations soar.
Business family feuds re-emerge each time market valuations soar.
In India, family-owned businesses (FOBs) contribute more than 75% of national GDP, and this is likely to rise to 80-85% by 2047.
Business houses and wealthy individuals are increasingly taking to family offices to preserve and grow their fortunes.
The healthcare sector is dominated by family-run firms, some of which have come into prominence in the past year.
But a decline in revenue and profitability will impact Indian corporations’ ability to contribute to the social sector through CSR activities.
Focus now on distributed leadership with group advisory board and chairman roles done away with.
The Covid-19 pandemic is a black swan event and requires investments to be assessed and amended in order to safeguard them during such turbulent times.
Like any other business, a family business too should have governance in place to ensure that both its family and business strategies are taken care of.
There are always issues which have been swept under the carpet due to lack of time or inclination, or perhaps both. This is a good time to revisit those and clear them up.
Family businesses have traditionally been the slowest to transform, but this experience should help them shed their reluctance towards change and keep up with the times.