Restructuring Family Companies

AlShall believes that there will be strong activity, in addition to privatization, in the reform of family companies. Statistics have shown that 90% of those companies dissolve by the third generation. AlShall believes that preserving those companies is possible by carrying out some protection measures related to changing their legal structure, separating ownership from management, and applying accredited accounting systems and systematic reporting procedures. The achievement of this combination of factors is assured to grant a great deal of transparency and facilitate divesture without jeopardizing the continuity of the entity.

AlShall undertook many assignments in that regards. The results were positive and easily achieved despite the highly emotional nature of the transaction. This transaction may be accompanied with financial restructuring in the form of a decrease or increase of capital and change in the shareholder mix that benefits all involved.