Family business: gaining an outside edge

External management can be the new blood a family business needs to thrive – as long it is handled with care.

According to the Institute for Family Business, two thirds of the enterprises in the UK are family-owned. That equates to 4.7m businesses, of which 17,000 are medium to large firms.

With so many, the way family businesses are managed can take many different forms. But often, a single person founded them, with other family members entering the business over time.

Stephen Morrall, partner at Hunters Solicitors, explains: “The process of finding the right manager is likely to take some time. First, the family must decide if it wants an external manager and for what purpose, which may take time to negotiate. Once this is agreed, there is the search for the right candidate. The family will need to agree how the business should be managed with an external person involved, and some existing positions and responsibilities may need to be changed appropriately.”

Read the full article in NatWest Content Live here.