FAMILY BUSINESSES have been venturing into the construction and real estate industries in the past two years, according to a family business consultancy.
Premier Family Business Consulting, Inc. Chief Partnership and Relationship Officer Jefferson Al Tio said the perceived trend is based on the number of the firm’s clients entering those businesses.
“We do manage many clients in many industries, including retail, construction, real estate, education, banking, shipping, and agribusiness, but I think for the past two years, our biggest clients have actually been the construction and real estate businesses,” Mr. Tio told BusinessWorld.
“These sectors are growing, and I believe that they are already starting to feel the need to really work on succession as they leverage their success,” he added.
He said that since the pandemic, many construction and real estate businesses continue to move forward.
“Family businesses in such industries felt the need to professionalize,” he added.
Based in Cebu, some 40% of the consulting firm’s clients are from there, but Premier also manages clients from Luzon, the Visayas, and Mindanao.
Jonathan A. Ramos, Premier’s chief executive officer and chief consultant, described the bulk of the client base as being micro and small, but with “great potential to become publicly listed someday.”
He noted that about 70%-80% of publicly listed companies are family owned.
Mr. Ramos said he supports legislation that helps family members preserve their share of the business.
“It is important for the law to recognize a clear definition of a family business primarily so that they can come up with laws to keep the wealth, shares, and ownership protected and to be owned exclusively within the bloodlines of the family,” he said.
He said such a law would bring out a family-run business’ strengths, such as loyalty and shared values, while minimizing instances of fragmented ownership by different families. — Justine Irish D. Tabile
