China's family-run factories struggle to hand the business to the founders' children
Just 10 of 114 private Chinese firms in a University of Ningbo-led study are run by the founders' children, the Guardian reported. Founders' knowhow and supplier networks are the hardest part to pass on, so buyers of these factories face handovers that look clean only on paper.
Reality
- Evidence40
- Adoption
- Not scored
- Hype gap+20
- Incentives
- Not scored
- Confidence45
CEO Score counts 46 of 49 fourth- and fifth-generation chaebol heirs as educated abroad, 33 of them starting as undergraduates. With the third generation already at 78.7%, anyone judging the next owners has to look at the age at which heirs leave Korea.
Reality
- Evidence62
- Adoption
- Not scored
- Hype gap+8
- Incentives
- Not scored
- Confidence60
Armani's will gives three preferred buyers about six months to take a 15% stake
Giorgio Armani's will allows about six months of talks to sell a 15% stake, with LVMH, L'Oréal and EssilorLuxottica named as preferred buyers. CEO Giuseppe Marsocci says the three could share it, so they may never have to bid against each other.
Reality
- Evidence45
- Adoption
- Not scored
- Hype gap+10
- Incentives
- Not scored
- Confidence55
An Exit Planning Institute column puts five triggers behind half of all owner exits
The Exit Planning Institute's 5Ds framing holds that a spouse or child gets only what a founder wrote down, and the column's own remedy is a values conversation, a standing family meeting and a spoken deal about a warehouse.
Reality
- Evidence20
- Adoption
- Not scored
- Hype gap+40
- Incentives78
- Confidence55
At Stew Leonard's, customers still don't recognize Stew Jr.'s successors
Blake Leonard and Jake Tavello already have the titles waiting for them, but the shoppers who stop Stew Jr. for selfies do not know their faces, and closing that gap is what the family's four-year schedule is actually for.
Reality
- Evidence55
- Adoption
- Not scored
- Hype gap+12
- Incentives62
- Confidence47