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Managing the family business transition

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  • Colombo Gianluca

    () (Department of Economics, University of Insubria, Italy)

Abstract

In this article we focus on the transition from the traditional family business to a more complex situation that occurs when the ownership becomes fragmented due to the generational drift. We illustrate the critical issues, the decisions and the main tools that may be used to manage this transition. We consider that a firm is a family business when one or few families, with strong alliance relationships, own a percentage of shares sufficient to control the voting rights in a firm or a group of firms.The generational drift is a natural phenomenon that can produce fragmentation in the ownership of a family business, when it is not contrasted by specific succession policies. In the industrialised countries, many family businesses are confronting with this issue as they are in the second or third generation.

Suggested Citation

  • Colombo Gianluca, 2003. "Managing the family business transition," Economics and Quantitative Methods qf0304, Department of Economics, University of Insubria.
  • Handle: RePEc:ins:quaeco:qf0304
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    File URL: http://eco.uninsubria.it/dipeco/Quaderni/files/QF2003_6.pdf
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