A proud holder of the coveted Michelin star, the Yung Kee restaurant was once considered among the world’s top 15 restaurants (Fortune Magazine, 1968). However, today it symbolizes the problems faced by Chinese family businesses. In little over a decade after the death of the founding patriarch Kam Shui Fai, Yung Kee Holdings Ltd. is [...]

Anyone interested in family business successions cannot ignore studying Japanese companies. As per a recent study by a South Korean bank, there are 5,586 companies worldwide that have existed for more than 200 years, of which 3,146 are Japanese. As per estimates there are more than 50,000 Japanese companies that have lasted over 100 years and [...]

Over the years, Indian companies and family businesses in particular have been active in making overseas direct investments in the hope of getting access to newer and more extensive markets, and better technologies. While some of these cross-border M&A have been successful, many of these investments have collapsed due to sluggish business conditions. In a [...]

State-owned Italian bank Cassa Depositi e Prestiti (CDP) is to set up a private equity fund to help family businesses go public, and thereby help boost the country’s economy. The bank intends to buy minority stakes in promising companies that are seeking to build up scale. This move could help double the number of companies [...]

In the US, an individual is entitled to charitable deductions of up to half of his adjusted gross income, provided that the money is donated to government-approved tax-exempt organizations. It is argued that the lack of such ‘tax shield’ mechanisms is one reason why the amount of donations in Asia still trails those in the [...]

Michael Hill International, a jewelry business, launched in 1979 with one shop, today has 300 stores across Australia, New Zealand and North America. It is headquartered in Australia and last year had revenues of AU$505.6 million. The Hill family owns 53% of the shares. Recently Michael Hill had to vigorously defend the appointment of his [...]

Working simultaneously with multiple family members is one of the biggest challenges in family business. If not managed properly, it can be a bitter pill to swallow. However, if the environment is managed properly, it can act as a source of pride and satisfaction for the entire family. In a recent article, Rick and Jeff [...]

According to a new research titled ‘Essence of Enterprise report’ conducted by HSBC and Scorpio Research, entrepreneurs in Asia are more likely to take a long-term approach to their enterprise compared to their western counterparts. The report surveyed 2800 entrepreneurs with a net worth of at least $1 million. The study finds that less than [...]

An important aspect of succession planning in any family business is the manner in which the next generation is gradually introduced into the business. However alarmingly, a recent study by Peking University has shown that eighty percent of potential Chinese heirs are reluctant to follow in their fathers’ footsteps. These results point towards an ensuing [...]

Professor William O’Hara, in his book ‘Centuries of Success’, asked: “Is there any institution more enduring or universal than a family business?” He himself answered this rhetorical question by stating: “Before the multinational corporation, there was family business. Before the Industrial Revolution, there was family business. Before the enlightenment of Greece and the empire of [...]