Running family company

The best way to run companies is to have them owned by another company, or family, that is the dominant shareholder.

Business owned by family groups or holding companies always tie the growth rate of their firms to their own financial needs. This is rarely supportive of growth or shareholder profits. Other constraints of holding companies cannot always provide the sums their subsidiaries need for expansion. In today's hi-tech world, they may not even know the business their subsidiaries are in. They may be reluctant to see subsidiaries raise money by issuing more shares on the stock exchange, for fear of ending up holding a smaller proportion of the total number of shares. However, sooner or later they tend to sell their stakes if someone offers the right price, thus opening up opportunities for foreign takeovers.