Financial management of family companies
KeywordsFamily business ; Three-circle business model ; Family corporate governance ; Family council ; Succession plan
Family businesses are the largest, steadily expanding and the most prevailing and successful firms across countries. Their form is out-of-the-ordinary and needs special management and treatment. First of all, the purpose of this master thesis is to present thorough analysis of the family business complexity and figure it out providing special handling methods for smooth business operations and relationships. Afterwards, succession plan, which is a burning issue, is studied and outlined, in order to analyze and implement the appropriate methodology in order to proceed to family firm succession selecting the most appropriate and qualified candidates to take on the leadership. The structure of this master thesis is composed of 4 chapters: In the first chapter, the family business present situation is analyzed through illustrating the family-owners confidence about the future the greatest challenges with which they must handle and their perspectives about the future. The second chapter includes the analysis of two-circle business model and three-circle business model and the description of ownership, family and business developmental stages. In the third chapter, the family business corporate governance is presented highlighting the significance of the inheritance of family values and the contribution of family councils and board of advisors in the family business. Moreover, the societal environment and PEST LE environment is analyzed in case of family organizations. In the last part, succession process is constructed and implemented in a case study in order to emphasize the significance of being prepared and planning.