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Family Business
Amrop defines a Family Owned Business (FOB) as one in which the family:
- Has a significant percentage of their personal capital/equity invested in the company.
- Is represented in the Board/Management with legal authority to appoint the CEO.
- Has a long term succession plan.
The importance of FOBs at a global level:
- They represent approximately 60% of companies in the European Union.
- In the USA, FOBs generate between 40-60% of the GDP and employ 50% of the workforce.
| FOBs |
Non FOBs |
| Place equal importance on personal values and business success. |
Results-oriented. |
| Demonstrate durability and stability in management and recruitment. |
Show increased rotation of executives, as well as facing threats from mergers and takeovers. |
| Executives are very close to the decision-making process. |
External factors affect the participation of executives in company strategy. |
| General Manager is a more “rounded” executive. |
Sometimes, CEOs are very specialized. |
| Healthy atmosphere, less staff turnover. |
More competitive atmosphere, more staff turnover. |
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