February 19, 2016

Why Family Businesses Can IPO and Still Maintain Culture and Tradition

The decision to go public presents a dilemma for any private company, but it carries extra baggage for family businesses, which may feel outside shareholders could compromise its internal culture. In an article published in Real Business, Melanie Wadsworth, partner in Faegre Baker Daniels' London office, outlined the factors family businesses should consider as they weigh the option of an IPO, including challenges such as increased scrutiny of business decisions by shareholders and the possibility that the company moves outside of family control.

“At the end of the day, the factors behind the decision as to whether a public listing makes sense will not be so different for a family business compared to other businesses,” Wadsworth wrote. “Any milestone event brings complications and frustrations, but if a family business can hold firm to a ‘we are all in this together’ mentality, it may be surprisingly well placed to make a successful transition to public company status.”

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