EDN: QAWPIW
Authors:
SVATEEV Pavel Romanovich
Abstract.
The article discusses the main strategies for the transfer of family business during the change of generations. Special attention is paid to the methods of evaluating family business and business transfer strategies. The relevance of this topic is justified by the fact that the family business has received a special development in Russia. It is very important for family members to maintain the continuity of the business. In the event of a business exit, it is necessary to correctly assess its value for a fair remuneration of shareholders. Family public companies are commercial organizations in which the total share of the company's shares owned by one family exceeds 50 %. Family members leave the business either for family reasons or for commercial reasons. The main methods of evaluating family public companies include: the assessment of the company's cash flow, the method of market multipliers and the method of previous transactions. In the case of a family business, there are additional factors that affect the result of assessing the value of the business, such as the importance of the outgoing shareholder, the transparency of the company's management system. Such a strategy of a family member's exit from business as a private sale of shares to another family member guarantees the preservation of business continuity. The family business has always been an engine of growth, and its success means the prosperity of the region's economy. In many family-owned enterprises, control is transferred to the second and third generation, which causes a number of problems and the need to create a reliable management system that is consistent with the growing number of shareholders. It is very important to first develop a strategy for the exit of a family member from the business when he sells his share in the capital. Proactive management of this process is essential to ensure the long-term continuity of the family business, harmonious family relations and the responsibility of shareholders. When a family member decides to leave the business, there are many questions related to the process of transferring ownership rights. Regardless of the reason for leaving the business and the influencing parties, this decision launches a process that requires careful planning and an open dialogue. The goal is to find a balance between preserving the personal freedom and financial security of family members, as well as retaining the future business.
Keywords:
family business, public companies, business valuation, business transfer strategies, joint stock company, valuation, cash flow, management system, problems, long-term, continuity, solutions, preservation, transparency, control, efficiency
