Money or emotion - what keeps business families together?

Economic crises, declining interest in the family business on the part of the next generation, rapidly growing groups of shareholders - business families face a variety of challenges. How can it still be possible to maintain cohesion within the business family and thus ensure the continued existence of the family business? Prof Dr Torsten Pieper from the Belk College of Business at the University of North Carolina at Charlotte examined this question in a study in which some of the oldest and most successful business families in Germany were asked about their recipe for success. The results showed that it is particularly important for intergenerational cohesion to understand and take into account the emotional, identity-forming and financial motives of all family members.

The interviewees cited regular family meetings, trust funds, dividend distributions and company tours as suitable ways of strengthening the bond between the family and the company. The new WIFU practical guide "Cohesion in business families. A prerequisite for ensuring the survival of family businesses".

"Family cohesion is the be-all and end-all of company and family longevity," says Prof Dr Torsten Pieper. "It is of great practical benefit to think about the dimensions of cohesion described in the guide and to discuss them within the family," adds Prof Dr Tom Rüsen, Managing Director of the WIFU Foundation and foreword editor. "Those who take unity seriously make an important contribution to the future viability of families and companies."

The practical guide described above and other WIFU publications are available free of charge on the WIFU Foundation website. For further information, please contact Dr Ruth Orenstrat at ruth.orenstrat@uni-wh.de or +49 2302 926-506.