This approach starts with owners
who put business growth and continuity as top priority. Eschewing cashing in on
their achievements they chose to remain privately owned. These owners provide consistency
of purpose and stability; making relatively small liquidity demands on the
company they send a signal through their boards that the company comes first. Freudenberg Group is a typical example of
this approach; where family shareholders prefer to keep their assets tied up in
their successful Eur6bn firm putting family ownership as a high priority rather
than letting other people manage their money.
The UK Government’s new focus on
mid-sized business expressed through various reviews including the latest one
led by Lord Heseltine is a sign that
the UK is increasingly recognising the importance of our own Hidden Champions. As in Germany family
firms are the most common form of ownership in this sector of the market- their
success is thus one of the key planks for driving national growth. To win back
a strong position the UK will require a new generation of owners who put the
success of their companies above making short term gains through managing a
quick exit.
