A third-generation GCC logistics conglomerate spanning six countries faced critical succession planning challenges. With 15 family shareholders across three branches and $2 billion in annual revenues, ownership was fragmented, and decision-making had become contentious. The 78-year-old patriarch’s retirement announcement triggered disputes over capital allocation. Some branches favoured aggressive reinvestment while others demanded maximum dividends. Quarterly board meetings devolved into lengthy conflicts, hampering strategic decisions and threatening the enterprise’s regional market position.
Our comprehensive three-phase approach addressed governance, leadership development, and financial architecture. We conducted confidential stakeholder interviews with all 15 family members, drafted a family constitution establishing clear decision-making protocols, and restructured ownership through a master holding company with distinct share classes for active, passive, and founding members. A seven-member family council was created with rotating leadership. We instituted a rigorous three-year leadership transition program pairing next-generation candidates with external mentors, established performance benchmarks, and created shadow roles across business units. Finally, we implemented a disciplined dividend policy, created an internal market for share monetisation, and established consolidated reporting across subsidiaries.
The transformation exceeded expectations across all metrics. Board cohesion improved dramatically from quarterly disputes requiring legal mediation to unanimous votes on major capital expenditure within the first year. The group’s credit rating improved two notches, reducing borrowing costs by 75 basis points and saving approximately $12 million annually. Family harmony was restored with complete elimination of shareholder litigation and 92% approval ratings for the new governance structure. Strategic progress accelerated with two major acquisitions totalling $384 million, expanding into e-commerce logistics and cold-chain management. One next-generation leader emerged as the clear CEO successor with full family support and a five-year strategic mandate, ensuring continuity and professional leadership for the decades ahead.
