Family-owned businesses are unique in many ways – long-term goals and more traditional values drive them more. Still, they are in many ways more flexible than multinational corporations. All these features account for the different behavior of these companies in M&A deals. iKadre professionals, https://ikadre.com/, offer the following tips on how to navigate a successful merger with a family business:
- Working out the framework for the relationship with the family members is critical – the owners of the family business acquired usually want to be a part of the new organization and make sure that the family values live on and the high standards they set are continued. The transition can be made much smoother if the owner family’s role is clearly defined from the very beginning;
- Cultural differences – a family business is less likely to be less versed in M&A deals than a large equity fund. Therefore patience and understanding of the other party’s position and communication routine is essential on both sides;
- An offer that highlights values and uniqueness is often more important to the family than offering the highest price – the owner families are keener on having their legacy continued than earning a considerable amount of money with the deal.