Reinventing the Family Firm - Chapter 1

DEFINING THE FAMILY BUSINESS PORTFOLIO FIRM

♦ A need to secure a positive cash flow, so as to be able to more easily support the author and his family’s personal needs, has also been a priority. It was seen as vital always to have some free cash available in order to be able to capitalize on emerging investment opportunities, particularly in family businesses where the original owners of a prospective investment might be short of cash.

Exhibit 1.1: Objectives in a family business Source: Tagiuri & Davis, 1978

21