12/09/2013
In the first session 'the family business forum to contribution
Four family experience: our finances after switching was better
Our goal is keeping our family firms after the second generation
In the first session, entitled (a family business), conducted by family business strategist Sami Salman, involving representatives of a number of family businesses (CEO and Managing Director of Al sorayai groupSalehAlsoraya, and Abdurrahman Moulay Board Member at Fawaz Al hokair and partners Co, CEO at Abdullah Al-khodari sons comnayFawaz Al-khodari, Managing Director of takween industries Abdul Mohsen Al-Othman).
The Chair has raised several questions about the benefit of family companies converted to stock companies, Alsoraya said that his company, which was founded in 1953 and lasted until 1996 and reached the second generation, it was composed of two partners, now 12, and then arrived in 60 companies, so to continue the company first, and maintain family relationships has been converted to a stock company, after reflection and study with realism, and qualifying newcomerspartners and convince them of the importance of the transition. He explained that it had been gradually, with the help of advisers legal and financial. The most important results achieved through this transition are the continuity of the activity and growth of the company, explaining that thinking to control the company through ownership of a majority of the stock, but who looks forward to the contribution does not think about the issue of control.
He pointed out that transparency and disclosure which happen to the family after becoming a contributioncompanyis positive and will be reflected positively on the company authority and its performance depending on the laws of capital market, he stressed on companies wishing for transition to a contribution to make use of mind control and logic in this matter, the subject is not a family, because compliments global statistics confirm that 33 of the family up to the second generation, and 15 of them up to 3, 4 to the fourth generation, it is necessary to transform the company for IPO, especially that there are billions of rials frozen in banks to family differences. Abdulmohsen Othman explained that the company had several options, they found that the best option is the transformation to a joint stock company, and was intended to shift the company's activity for continuation after the death of the founder, and expertise from outside the family, increase liquidity, and what we found after putting a different equation, we have opportunities for mergers or acquisitions with competitors, and the style we treat different parties different from the former, giving us this shift better bargaining power.
As Fawaz Al-khodari explained that the company founded by his father, the late Abdullah Al-khodari 20 years after the death of his father, with 16 son and daughter, so the shift in the 1990s was absent because of immaturity of the stock market as well as some difficulties to the contracting activity in the Foundation of the company, but beyond this is an important topic, we decided to switch to the company's successes. Pointing out that such a transformation is facing some challenges, but dialogue and convincing all parties of the results of the company after the switch can bypass all that. Alkhodhayri noted that the results achieved by the process of transformation is to raise the level of performance of the staff, who are dealing with a company providing privileges, such as opening the way to be partners in the ownership of the company, beside the transparency in the company helped in business development section, but Abdulrahman Moulay explained that his company's transformation came 16 years after the creation of the company, and the aim is to maximize the value added, raising revenue, as well as the continuing company for coming generations, we have achieved so many positive results perhaps most notably expansion and maximizing shareholder wealth, and take advantage of the features of the capital market authority, and credibility with all parties dealing with the company. He stressed the need for clarity of the relationship between the company and the family, and that the separation between management and ownership, which agreed with the governance of family businesses.
