Only 20 percent of family businesses make it to the third generation and only 13 percent past that. Yet mounting research documents the superior profitability of family firms, even over widely held public firms. My research of the 1,000 largest public firms worldwide suggests those controlled by families earn a 30+ percent higher return on capital.
What helps these firms thrive?
Beyond an independent board of directors, regular family meetings, and a family constitution, I… Continue