“Professionalizing can entail risks in family firms,” by Andreas Raharso
What most successful family companies have done to achieve their current performance goes beyond professionalizing their businesses. While it is important to professionalize to attain strong
financial capital,
it is even more crucial to secure a high level of
family capital.
This is achieved through building a strong, gratifying and supportive relationship among family members.
Family capital enables the firm to move forward as a unified body without strife and dissension, thereby ensuring its sustainability. Healthy relationships among family members aid in bonding the family together in tumultuous times and are a good form of defense in warding off hostile takeovers.
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