David Klett Perfecting family business

Dr. David Klett reveals well-honed system used by 40+ members of the German Klett family to manage the international book publishing, education and childcare company Klett Gruppe.
00:00 Intro: Secret to family office survival, "death" of publishing, love of Kaurismäki movies in Finland
00:50 Why family businesses are very important and why all ownership cannot be institutional
01:24 Klett Gruppe, 127 years publishing, education, kindergartens from Germany
02:02 Internationalisation and growth. Comparison to Sanoma of Finland
03.28 Four to six generations of family company, 40something members from 3 to 86 year old
04.06 Comparison to "asuntosakeyhtiö" apartment ownership structure in Finland, lack of capital in Finland
05:10 The Klett solution to ownership complexity is carefully layered corporate governance
07:30 Silicon chip industry in Asia. Finnish Harry Potter (WSOY) share the Thai artwork (Nanmeebooks)
08:47 Overcoming challenges, "Families are not built to decide stuff"
09:57 The Family Council of 5 takes care of the family
11:56 Board of Directors / Supervisory Board
13:00 Management Board
13:40 Checks for nepotism vs. family ownership education
16:09 Top level executive qualifications are very strict
19:50 Time limits for positions
21:20 Managing the international subsidiaries under four silos
22:07 Paradox of survival. Managing acquisitions and exits. Studeo. SAP's failed acquisition of Qualtrix of USA
25:30 Selling to Private equity is not for Klett Gruppe which aims for long-term ownership
28:18 Family office does not need to hold financial assets. Living off dividends is not encouraged
30:40 Tackling political risk. Problems of high inheritance tax in Finland
34:00 Finnish pension system replaces private ownership capital
35:05 Good ownership skills are more important than inheriting wealth
36:49 #negotiator insider episode: Chainsaws Kaurismäki and Secrets David Klett #negotiator insider 54🎥 • Chainsaws Kaurismäki a...
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#neuvottelija Sami Miettinen

[@lapinnoita2374]

Very smart structure. Would love to hear more about the shareholders’ agreement

[@samimiettinen]

Yes, indeed, I got the impression the Family Council is a kind of consigliere in a good way, taking care of the legal stuff and arrangements.
For example wills are very complicated and can get a family-owned company in a wrong footing. I guess that is why the first generations of Klett passed the shares selectively to the next, but that can be hugely unfair if you are left out.