Stakeholder Growth
As a business grows, the number of stakeholders increases. External stakeholders of mature family businesses include banks, investors, suppliers, and employees. Additionally, second or third generation successors and family outsiders can also become stakeholders.
Transparency in Family Businesses
Increased stakeholder involvement necessitates greater openness, transparency, and control, often conflicting with the traditional opacity of family businesses. Larger family businesses, in particular, may resist providing financial data to protect family interests.
Need for External Supervision
Many family businesses lack an external Supervisory Board to oversee management, relying instead on family members. However, professional supervision has become essential. It helps maintain organizational focus and satisfies public demands for greater transparency and control. Additionally, external supervision enhances the perception of the company as a mature and professional organization open to the outside world.
Balancing governance involves addressing both family values and stakeholder interests. When selecting supervisors, all requirements must be considered.
Establishing Effective Governance
Looking for a board member who understands family businesses? Clifton Finance has a strong network of seasoned supervisors with deep insights into family enterprises, whether as shareholders or directors.
Clifton Finance has extensive experience in establishing governance structures within family businesses while preserving family values. We analyze the desired end goals and determine the best decision-making structures in consultation. We also consider the wishes of the next generation to ensure long-term governance. Feel free to contact us for more information.
