07.03.2018

Managing transitions between generations well is one of the most important factors for family businesses to be sustainable. According to the PwC Family Business Survey, one of the most prominent problems of family businesses is the inability of the next generation to follow the goals set by the founder and transfer them well. In the US, an average of 40 percent of family businesses disappear in the first five years, while 66 percent of the rest fail or change hands in the first generation. The rate of family businesses that survive to the second generation does not exceed 20 percent.

Martaş Automotive is an example of a family business that manages this intergenerational transition very successfully... Hadi Özalp, who started his business life by selling spare parts in a small shop, handed over the management of his 37-year-old company to his children Ziya Özalp and Baver Özalp in 2010. The two brothers not only transformed the spare parts wholesaler business into a large logistics business, but also made it the largest in its field with "private label" production, global collaborations and investments in technology.

Read more for Capital January 2018