Family businesses, economic pillar and backbone of Maltese society
In Malta, family businesses are the economic backbone of our society and have been able to withstand economic recessions. According to the Maltese Government statistics, 75% of businesses in Malta are family-owned. Most of these businesses are passed down to the next generation, but ultimately only around 30% manage to survive. Less than 10% make it to the third generation and only about 3% of all family businesses operate into the fourth generation or beyond.
40% of Maltese family businesses have no succession plans
This is generally due to lack of time, which is the reason most cited by the entrepreneur; liquidity difficulties and lack of developed governance during the lifetime of the family business; lack of succession planning; clear demarcation of roles and competencies and lack of financial planning.
All of these factors reinforce the limited ability of such family businesses to successfully move on to the next generation. As a result, the succession of a family business is the most difficult process facing family businesses, because if it is not undertaken properly, it can end the family business. However, by anticipating the departure of the initial management team, succession planning significantly improves the company’s chances of survival.
Consultation and assistance by IURIS Business solutions
As part of its professional service offering, IURIS Business Solutions provides consulting services on succession planning and assists the entrepreneur in the restructuring process by focusing on the key issues necessary for the sustainability of the family business.
Family businesses assume rigorous succession processes that involve a series of discussions with the relevant parties, and specialised design and planning for the future of the company.
During succession planning and restructuring, we help and support the family business by:
- Defining, designing and implementing an overall strategic plan for succession and restructuring;
- Preparing a schedule for succession and restructuring;
- Providing operational consultation at each stage of succession planning and restructuring;
- Providing consultation services in the area of company law and corporate taxation.
This is carried out by ensuring discussions with the relevant parties and shareholder engagement; the selection of candidates for succession; and the integration of the selected successor into the family business.
For more information about our services, you may wish to visit Business Solutions.
Should you wish to understand how we can Give Value to Your Business by enabling you to address your challenges while exploiting opportunities, please contact Ms. Diana Spiteri or any other member of the IURIS team for an appointment.