Transactions involving Family Businesses
Advising on transactions involving family businesses demands a specialised approach that successfully aligns business and family interests, safeguarding the assets, continuity and values of the business family.
This approach is based on recognition of the following factors:
- Importance of the decision-making process due to the strong emotional connection between the business and its owners, which can significantly influence strategic decisions, including sales, mergers or acquisitions, as well as the decision to open up to new investors.
- Possible emotional resistance from founders or family members, who may see certain forms of investment (active or passive) as a loss of identity or legacy. This factor can delay negotiations or make transactions unfeasible if not managed properly.
- Confidentiality of the process, which is especially important in the case of family control.
- Awareness of the opportunities and benefits inherent in various M&A operations, in terms of liquidity as well as investment expansion and diversification.
- Specific requirements relating to the integration and organisation of the transaction instruments, to preserve the family’s interests.
In summary, the M&A of family businesses is a complex process that requires sensitivity in dealing with both emotional and technical issues and concerns.
Know-how
- comprehensive legal support in corporate transactions, safeguarding family control and the interests of different branches of the family
- structuring of transactions involving the entry or exit of strategic, financial or institutional investors, safeguarding know-how, values and family governance
- transaction planning and structuring: Definition of the corporate model, reorganisation of shareholdings, segregation of assets, and creation of investment vehicles, always in line with the business family’s objectives
- multidisciplinary due diligence: Conducting legal, tax and regulatory audits, considering the specificities of the family’s assets and protocols
- post-transaction integration: Monitoring the integration of new partners or internal reorganisation, ensuring business continuity and the preservation of family assets