Family businesses are characterized by ownership and control of the company being in the hands of a family seeking to maintain and perpetuate the business project.
In the current context, more than 85% of Mexico’s Gross Domestic Product comes from this type of companies, consistently placing the country among the top ten worldwide in terms of presence of family businesses, closely competing with nations like Brazil.
Unfortunately, it is estimated that only between 10 and 15 percent of these companies manage to survive until the third generation.
The continuity of family businesses represents a critical issue, given their importance in the economy and society of any country. They face a high risk of disappearance due to the numerous challenges they must face throughout their trajectory.
It is essential to properly manage aspects such as the incorporation of family members into the company, the distribution of generated wealth, the training of the next generation, family relationships, the preservation of the legacy, and the maintenance of the family’s commitment to the business. Succession should be a planned and consensus-driven process between the founder and the family, preferably while the founder is alive.
In the field of corporate governance of family businesses, policies stand out to manage conflicts of interest, the distribution of dividends and profits, hiring, and operational management.
Establishing appropriate institutional governance within the company involves taking into account the various voices of partners and advisors through the implementation of policies and bodies of administration and supervision.
At Vega, Guerrero y Asociados, we are dedicated to providing companies with the necessary corporate governance to ensure their survival, continuity, and permanence over time, allowing them to remain relevant for the different generations that succeed in their evolution.
