BY UE STUDIO

Thursday, 28october2021-11: 41

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In Spain, 89% of companies are family businesses, according to data from the Instituto de la Empresa Familiar (IEF).

That is, they meet three conditions: owning the business, performing executive and managerial tasks and - not least - having a vocation of continuity over time.

If we break down the previous percentage even more, small companies account for almost half of family businesses (47%), medium-sized companies represent 26% and large companies, 27%, according to the

Family Business

Report

2021

, published by the IEF in June of this year.

Furthermore, we are the European country with the highest share of family businesses, which generate almost 70% of employment in the private sector, as established by the European Family Businesses (EFB).

Abante

This type of organization, like all, has its peculiarities, which reside in its own nature, with all the strengths and weaknesses that this entails. Family businesses are more resistant to job loss in times of crisis, more stable because they accumulate less debt - by taking less risks - and - very importantly - have their own values, a way of doing things with a large emotional component which, if managed well, becomes a great competitive advantage. In addition, they are especially appreciated by consumers, since they consider them close. On the other hand, among its weaknesses, the usual lack of planning stands out, especially with regard to succession. "Only 30% of family businesses have a succession plan and only 10% have it in writing",says Belén Alarcón, managing partner of wealth advice at Abante Asesores.

Succession, a decision for today

The latest IEF study reveals that only 9% of family businesses reach the third generation and only 1% reach the fourth.

Currently, the leadership of 43% of companies is in the second generation.

Therefore, although family businesses represent the majority of the business fabric of our country, their life expectancy is lower than that of other companies.

Belén Alarcón, managing partner of wealth advice at Abante Asesores, and Pablo Márquez de Prado, partner of corporate advice at Abante Asesores

The main reason is that two antagonistic systems, family and company, in principle not intended to be understood, are obliged to coexist.

The complexity grows even more when we add a third factor to the equation: property.

For this reason, organizing the generational change in the family business is key to its continuity, not without difficulties: to business issues we must add family and personal issues.

"We cannot believe that succession is something we have to think about in the future. The decisions we make in the present are vital to guarantee the future of the family business and avoid long-term conflicts", highlights Pablo Márquez de Prado, partner of corporate advice from Abante Asesores.

A global strategic plan

In this difficult coexistence of three worlds (family, company and property) that occurs in family businesses, receiving financial advice from an expert is key to achieving the success, and future, of this type of company. Abante Asesores works to make this happen and offers a differential service that combines a complete process in which teams that work without conflicts of interest intervene and that analyze both the personal situation of the different members of the family and of the family as a whole, like business aspects. The financial institution's experience in simultaneously providing additional wealth advisory services makes this global solution possible.

Abante begins by working with the individual self and his family, as each member makes decisions and defends their interests following different principles, and then works with the collective self, the family as a whole.

This service is provided through a global strategic plan to build common interests, adapt to challenges and achieve financial success for the company, solving family problems.

In short, helping her to become professional in order to generate a work culture, in addition to drawing up a succession plan, which must be personal and financial.

Made by UE Studio

This text has been developed by UE Studio, creative firm of branded content and content marketing of Unidad Editorial, paraABANTE.

According to the criteria of The Trust Project

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