Family Business

It takes an enormous act of will within a family to continue a founder's business, irrespective of the success of the firm. For Harveys to have lasted over two hundred years and seven/eight generations in private family ownership is very rare.

Statistics

• Over half the U.K.'s businesses are private enterprises.
• Of those firms that are 25 years old or more, only about one in three make it to a second generation.
• One in 20 of those survive to a third generation while still remaining under family control.

What could curtail the perpetuity of a family business?

• A very dynamic business model will invariably require share issue or floatation, welcoming growth investment from outside a founder's family. This usually inevitably leads to family control dissipating over time.
• Family businesses can suffer from unaffordable transfer taxes between generations, making sale likely.
• Successful medium sized family businesses risk predatory takeover from larger competitors.
• It can be difficult finding keen and capable family members to continue a business.
• The aims of a next generation may be to 'sell up' as soon as possible.
• Family disputes and rivalries can end in schism or disposal.
• Sometimes the most enterprising of descendants wish to create their own commercial entity and not be accused of 'being born with a silver spoon in the mouth'.

Family businesses are to be treasured. They demonstrate enterprise, freedom, quality and traditional values. Harveys cannot guarantee its perpetuity, but the Family, Trustees and Board members recognise the high regard in which the company is held and have made every effort to prepare the company for future generations.

When fellow heritage brewer George Gale and Co were taken over in 2005, a motion stating "The company was not for sale" was put forward at Harveys' Annual General Meeting. It was passed with the enthusiastic support of the 100% of the shareholders.