Goldman Sachs chairman says optimism, not paperwork, hampers family business longevity

Goldman Sachs’ recent internal paper reports that roughly 12% of family-run enterprises remain under family control by the third generation. François-Xavier de Mallmann, chair of the bank’s Investment Banking division and Goldman Sachs EMEA, told one outlet that the principal challenge is not missing legal documents but the optimism of founders, which can postpone critical succession discussions. He explained that as businesses grow, family and corporate interests may diverge, prompting some owners to bring in external capital or restructure ownership to sustain growth.

De Mallmann highlighted the importance of early, transparent conversations about leadership, voting rights, and ownership distribution, noting that formal plans are often delayed due to immediate operational priorities. While some families retain control, others find that ceding some control protects long-term value. He affirmed that Goldman Sachs advises based on each family's goals, without bias toward keeping firms private or selling them.