Succession in Malta: Navigating Family Business Challenges

Picture this: the bustling streets of Valletta, the sun casting a golden glow over the Grandmaster’s Palace. Amidst the humdrum of daily life, a family sits down to discuss the future of their generations-old business. This scene, played out in countless homes across Malta, is the heart of our island’s economic fabric – the family business.

Generational Gaps: The Elephant in the Room

Malta’s family businesses face a unique challenge: succession. As the first generation passes the baton, the second generation steps up, often with differing visions and skills. This generational gap can lead to tension, with each side struggling to understand the other’s perspective.

Take, for instance, the Cassar family, owners of the popular Tal-Cassar bakery in Msida. The second generation, led by Mario Cassar, has expanded the business, introducing new products and an online ordering system. However, not everyone agrees with their approach. “We’ve had our share of disagreements,” admits Mario, “but we’ve always managed to find common ground.”

Branching Out or Staying Put?

Another common dilemma is whether to diversify or stick to the core business. With the island’s economy evolving, many family businesses are tempted to branch out. But this comes with its own set of risks.

Consider the Agius family, who run the successful Agius Garage in Birkirkara. The third generation, led by siblings Mark and Michelle, has been considering expanding into electric vehicle sales. “It’s a growing market,” says Michelle, “but it’s also a big investment. We’re still weighing our options.”

Blood is Thicker than Water: But What About Fairness?

Succession also raises questions of fairness. Not all family members may want to, or be suited to, take over the business. Yet, tradition and expectations can make it difficult for some to opt out.

This was the case for Joseph Xuereb, who left the family’s successful catering business in Rabat to pursue a career in teaching. “It wasn’t an easy decision,” he admits, “but I knew I had to follow my passion. Thankfully, my family understood and supported me.”

As Malta’s family businesses continue to evolve, so too must their succession plans. Open communication, clear expectations, and a willingness to adapt are key. After all, as the Cassar family knows all too well, the recipe for success isn’t always written in stone.