The lifecycle of these companies is often shaped by the founder, who brings a strong vision, drives growth, and in many cases, centralizes decision-making. However, as these leaders grow older, the need arises to institutionalize management, define the role of new generations, and in some cases, open the company to capital markets.
Going public can be a strategy to professionalize the company and ensure its continuity beyond the founding family. Companies like Cencosud have used this mechanism to finance expansion. However, not all family firms see this as a viable option. Many prefer to keep control within the family, which can complicate the transition if there is no clear succession plan in place.
Integrating the next generation is a critical point. Having the right last name is not enough — successors must be well-prepared, gain experience outside the family business, and demonstrate leadership skills. In some cases, the best decision might be to delegate management to external executives, ensuring solid and balanced corporate governance.
At the same time, the founder’s exit is often a complex process. Beyond structural issues, succession in family businesses involves a strong emotional component, both for the founder and for the family and key employees. For many founders, letting go means facing a loss of identity, fear of irrelevance, or even internal conflict regarding the future of their legacy.
Likewise, the new generation may feel the pressure of living up to an iconic figure, while employees may experience uncertainty around the continuity of leadership and organizational culture. Managing these aspects requires not only planning but also open communication, mentorship processes, and in some cases, external consulting support to ensure a smooth transition and avoid tensions that could threaten business stability.
In Chile, there are indeed examples of family businesses that have managed this process in an orderly manner. The Luksic family, for instance, has carried out a methodical and professionalized transition. After the death of Andrónico Luksic Abaroa in 2005, management of the group passed to his children, who were already prepared and held strategic roles within the holding. They also brought in high-level external executives, maintaining family control but with a well-structured corporate governance model.
A similar case is the Angelini group, where succession has been handled in a structured way, with strong governance and the participation of professional executives in management. After Anacleto Angelini passed away in 2007, leadership transitioned to Roberto Angelini, who has continued to drive the group’s growth without major family conflicts.
The case of Horst Paulmann reflects the very real challenges these types of companies face. His legacy at Cencosud is undeniable, but the succession process has required adjustments and faced obstacles. For Chilean family businesses, the key lies in anticipating, planning, and professionalizing the succession process to ensure that the founder’s growth and vision continue long after their leadership ends.