Family Owned Business

Family Owned Business

Postby Aspellian » Wed Jan 06, 2010 9:47 am

kennynah wrote:
Musicwhiz wrote:Yes, I personally think so. JUst slap a "7.2x PER" to justify "selling", then to encourage "buying" just use say 10x PER. Brokerages can tweak this elusive number called PER based on their whims and fancies. :lol:


so complex.....i tell you bro...even when i know you lao jiao.... "family run" business... dont touch...


why family run biz dun touch?? :? isnt it true that these businessmen having major shares in the companies will also be aligned with minority shareholders? vs a paid CEO with no shares in the listed company?

please advise.

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Re: Tiong Woon

Postby kennynah » Wed Jan 06, 2010 7:10 pm

my reasoning is simple... when it is a family run business, their allegiance will first be to their family shareholders... the business is also usually operated by the family business...eg, QianHu, and many of the ship building and maintenance companies...

yo put yourself in their position... ask these questions (and i offer you my views below them) :

a) why do you list your company in the first place?
K : becos i want to borrow from the public, give them a small holding and defray my risks of business undertaking

b) why do i appoint family member only to management team?
K : becos i want to control how i manage the business and ensure a firm grip on finances of the company

c) whose interests is my foremost concern ?
K : mine and my family owners come first... the crumbs can be left for the others.. this also means that i dictate how much i pay myself.... and since i am the largest stake holder, i have absolute veto power on what my salary package is, which is almost always so much that it depletes much of the profits..

in other words, our locally run listed companies are simply practicing and abusing capitalism ..

this is my thoughts... and i urge you to review Serial Systems as a excellent example of how a man can do so well for himself while the company and the "other" shareholders are constantly disadvantaged...

and now, i ask you ...

why are you so keen on family own and run public listed companies?
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Re: Family Run Businesses

Postby winston » Thu Jan 07, 2010 10:17 am

In HK, the better assets of the families, are supposedly not inside the listed entities ...
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Re: Family Run Business

Postby winston » Sun Mar 27, 2011 8:09 pm

TOL:-

CNBC's "Managing Asia" is having a series on SMEs and they are mostly family run.

This reminds me of an advantage of investing in Family Run businesses ie. they are very careful about their where they spend their money. They do watch their expenses very carefully, unlike some of the bigger corporations who have Gulf-Streams, Sunseekers etc.

In addition, they are also very careful about any M&A activities. And they will never over-pay unlike their bigger cousins. By the way, have you seen any successful M&A lately ?
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Me and My Money Series 03 (Jan 11 - Jun 13)

Postby behappyalways » Thu Jan 03, 2013 3:58 pm

(some good advices )

They’re 300 years old and still in business

A very select club whose family businesses have been going since long before the Industrial Revolution has just celebrated its continued existence

http://www.telegraph.co.uk/finance/your ... iness.html
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Re: Family Owned Business

Postby winston » Mon Nov 11, 2019 8:22 am

Tycoon-led companies outperform market, survey finds

Billionaire-controlled companies have returned almost twice the average market performance over the past 15 years, new research published today reveals.

This is one of the findings of the annual UBS and PwC Billionaires Insights report, The Billionaire Effect.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 1108&sid=2
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