The German Merck family business has survived for more than 350 years. That’s 13 generations of family ownership. Currently, there are 319 family members, including 204 family shareholders. How does a family business survive and thrive for 350 years? With an effective governance system, strong family relationships, and competent ownership.
As the authors of the article point out, the Merck family relies heavily on family governance systems. The family’s first constitution was established in 1888 and, today, the governance system rests on two distinct bodies: the family board and the board of partners. The family board—elected by the family shareholders—represents the family’s interests in the business. It also nominates the members of the board of partners who exercise daily operational control over the business. An effective governance system is only one part of the Merck family’s success.
To learn more about the three pillars of a successful and long-lasting family business, read “What All Family Businesses Can Learn from the Merck Family.” Stick to the end and come away with applicable insights for yours or your client’s family business.
Read about the three pillars of a successful and long-lasting family business here.
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