Members of our FIC community and subscribers to The European Family Investment Company Report – owners and family members – from ten countries attended two EFIC Virtual Meetings in the first half of the year.
We have just published our Notes and Takeaways from these meetings.
Notes
Our first, led by two 5G family members, whose family twice ‘pruned’ the shareholder tree over the generations, discussed ‘Does a fair exit mechanism and internal market for shares strengthen longevity of family businesses?’
They discussed their family’s approach and argued that a fair exit mechanism does strengthen family business longevity.
The ensuing discussion with our community focused broadly on two aspects: the practical (full or partial exit, fiscal considerations, valuation mechanisms, how are exits funded etc) and the familial and emotional (exits are difficult but a necessary pressure valve, importance of transparency and fairness, need to agree basic principles, treatment of exited shareholders, etc).
Our second, a panel of three family members from three European FICs, discussed ‘Investment focus – strategies, portfolios, operating models.’
The three families presented their respective investment approaches (standalone evergreen investment company, liquid portfolio and a PE strategy).
After the presentations, discussion focussed on three key topics: AI. (role, how to use effectively, implication for investment process and investee companies etc); Private Equity. (facing serious challenges, current opportunities, continuing place in a FIC investment strategy etc); and Risk and return. (assessing and agreeing risk appetite and return expectations, different assets have different profiles, trade-offs between control and diversification etc).
Takeaways
At first glance, the two meetings could be seen discussing two quite different topics – exit mechanisms and investment strategies. However, on closer examination, there are some important, common family-business themes revealed across them and we published a list of eight suggested Takeaways under the headings of purpose, familiness, liquidity, flexibility, planning, agreement, fairness and fun.
☕ As is our tradition, after the ‘formal’ Virtual Meetings closed we invited attendees, speakers and panellists for a Virtual Coffee in the Cyber Foyer, when we had a very open and wide-ranging discussion of family business and investment issues. ☕
NOTE: to enquire how to receive the full text of the Meeting Notes and Takeaways from this EFIC Virtual Meeting or how to join our community of Family Investment Companies please email: info @ deanbridgeinternational.com