When majority owner leaves what happens to the company

Question

When majority owner leaves what happens to the company

The disappearance of the creator of the company many times equals sign or liquidation sale. Which, paradoxically, also marks the end of the problems, as already noticed that legacies Mafalda never distributed, but quartered. The transition to a new family leadership causes, according to a recent study, a drop in sales and a loss of short-term employment.

A bird's eye view, the Venezuelan archipelago of Los Roques is the mirror image of paradise on earth. But for Missoni, one of the fashion houses of the world’s best-known luxury can also be your end. In January, while returning by plane from vacation, disappeared between these islands and cays, Vittorio Missoni, its CEO. Five months later found dead , at age 92, Ottavio, Vittorio father and company founder. Since then, some analysts speak of the end of the era of the great family fashion emporiums in Italy. And make their private accounts. Gucci, Brioni, Bulgari, Fendi and Emilio Pucci are now part of international groups such as LVMH and PPR. Only Ermenegildo Zegna (managed by the fourth generation of the Zegna family) seems to maintain their family structure.’ll Hold independence? Missoni, now missing its founder and CEO?

Four years after the death of the majority shareholder of a family business, sales fall by 60% and lose17 % of jobs.

The chief causes relay falling sales and layoffs, according to a study
"We realized that in these years of crisis, firms whose founder dies are more likely to suffer a bankruptcy," says Hans Hvide email. And states:”The loss of this person means the company stops developing." He endorses Ramón Gurriarán, area director of Business Management EOI Business School :” The disappearance of the founder just impacting the company or yes." A phrase that many associate with Apple and the bad time living in bag after the death of Steve Jobs.”The loss of the creator affects all companies. And the Cupertino tech firm is a clear case,” delves Diego Sánchez de León, managing director of Accenture's talent and organization.

But the study of Hvide and Warwick teachers, drawn from 341 Norwegian firms, has brought other surprises. The impact on the company is less when the owner who dies has a minority interest, compared to when majority and also companies of between one and two years old are the ones that suffer the loss in the income statement.

Manuel Vázquez Montalbán wrote that the problem with heart (he was) is carrying the enemy within. The same happens to many of these entrepreneurs.” We often see how the founder is 80 years old and still rules, while their children, 60 years old, have never taken real responsibility of management in the company. Not built transit. This is serious,”reflects Inigo Susaeta, managing partner of the financial advisory firm Arcanum.

That failure suggests to Alberto Gimeno, Professor of Family Business at ESADE, a picture.” An orderly transition is what we see when a pope dies, everything is regulated, and another, totally different, is that we live in Venezuela with Hugo Chavez’s death."