When talking about the succession and inheritance of family businesses, there is a model that is both ancient and special, which is "differentiating the business but not the family." It is said to be ancient because it has existed since ancient times. The older generation always teaches the younger generation to "carry virtues for all things and prosper thousands of families with peace." As the saying goes, "If you divide the family, you will not separate the family." I hope that everyone can get together and pass on the family business together. It's special because this kind of succession is not a one-person succession, but a team succession, with several people taking over together.
Taiwan’s four Ting Hsin Wei brothers
Speaking of “different businesses do not separate families”, Taiwan Ting Hsin Group is a typical example. Of course, the Hope Company of the four mainland brothers Liu Yongxing and initially "divided their businesses and not their families." However, as soon as Liu Yongxing and Liu Yonghao's companies entered a period of rapid growth, they separated, and the corporate structure and development areas also changed a lot.
The four Wei brothers of the Dingxin family have been in business for more than 40 years. Now they are all in their sixties, but they still do not separate their families. There is a division of labor among the brothers in managing the business, but the shares are equal.
The eldest of the four Wei brothers, Wei Yingzhou, was born in 1954. He is the father of the well-known instant noodles "Master Kong". The second oldest, Wei Yingjiao, the third oldest, Wei Yingchong, and the fourth oldest, Wei Yingxing, are called Da Dong, Er Dong, Third Dong, and Fourth Dong respectively. (Interestingly, the names of these four brothers have exactly the same number of strokes; among them, the third character of the name: Zhou, Jiao, Chong, Xing, counting them all has 6 strokes. Was it intentional when the old man of the Wei family came up with the name. They are uniform, advance and retreat together, and do not separate families!)
The four Wei brothers
The Wei family's ancestral business is to make oil. As a partnership family business, although the four Wei brothers seem to be very successful today, they have also suffered several falls.
In 2014, the food safety scandal involving gutter oil caused the brand to fall into disgrace, and Taiwanese people even launched a voluntary "Operation Ding Hsin" (Ding Hsin). When Wei Yingchong, the third oldest person, was implicated in the black-hearted oil incident and was ordered to be detained and banned from public viewing by the Changhua District Court, the media photographed him wetting his pants, which became a topic of public opinion.
Wei Yingchong, chairman of Ting Hsin Group, and six defendants were later found not guilty, which put an end to the incident. During this period, Ting Hsin was also forced to lose the right to operate Taipei’s iconic 101 Building.
In fact, during the financial crisis in 1998, Ting Hsin also suffered a heavy fall. In the end, the four brothers worked together and survived. The ability to survive the family business crises one after another should be attributed to the priceless spirit of cooperation among the four Wei brothers.
The eldest brother is like the "Party Central Committee", and the other three brothers are closely united around the "Party Central Committee" with the eldest brother as the core.
When Ting Hsin Taiwan's career was in jeopardy, CEO Wei Yingzhou stepped forward to take the lead in "returning to the company to rescue", and also let everyone see the benefits of "separating businesses without separating families."
Division of labor, division of industry, and separation of families. One of them cannot be left without work. Division of labor and industry should be divided. The core is not separation of families. The Wei family has set up a family fund. No matter what kind of work they do, the money they earn should be returned to the family fund as much as possible. Each family receives a fixed amount of living expenses every month, and all children’s tuition fees are paid by the fund. The family fund
is not actually about having a lot of money, but it is about conveying a common core value, that is, "a family with thousands of ancestors has one person", and we must be united into one family. The four members of the Wei family are each in charge of their own stall, each has found his or her own position, and has worked together from beginning to end. So far, it has been relatively smooth.
Of course, compared to the famous four brothers of the Wei family, the second generation of his family seems to have remained unknown. At present, the second generation of the Wei family has slowly been pushed to the front desk to prepare for succession. In 2015, Wei Hongming, the son of Wei Yingzhou, the eldest son of the Wei family, took over the position of Master Kong's executive director from his second uncle Wei Yingjiao, which was seen as the Wei family's preparations to start the second generation inheritance. "Brothers who work together can break through metal." Whether the new generation of the Wei family can be like their fathers and "separate careers but not families" remains to be tested by time.
[Yibo Shuo] published an article on October 27, introducing a "high-level earthquake" within the Fubon family in Taiwan. Cai Mingzhong and Cai Mingxing "switched seats" and "brothers do not separate families." If you are interested, you can take a look. In fact, not only Taiwanese companies, but also many Japanese family businesses also attach great importance to "separating the business without separating the family." They regard this inheritance concept as the key to everlasting business.
Thailand's Huang Ziming Family
Thailand's Huang Ziming family is known as the richest man in Thailand. It was once one of the 100 richest families in the world. What is very interesting is that this family also "does not separate its businesses."
There are three emerging Chinese families in Thailand, namely the Huang Ziming family, Chen Youhan family and Xie Guomin family. The Huang Ziming family, also known as the "Gan Chana Bo Family", is originally from Puning, Guangdong. Huang Ziming was born in Mazha Village, Puning County, Guangdong Province in 1921. He went to Thailand with his father at the age of 8. At the age of 12, he began to work as an apprentice at his father's "Huang Xianji" in Chinatown, Bangkok, learning polishing and optometry. He started his business by selling clocks and bird's nests, and later became the "King of Watches".
In the 1940s, Huang Ziming founded Bangkok in Thailand and established Tongcheng Co., Ltd. to operate glasses and watches. After the 1950s, the business expanded to Hong Kong, Singapore, Malaysia . In the 1960s, the Wong Chi-ming family no longer only operated glasses and watches, but developed into a diversified business. Especially in the 1970s, the Wong Chi-ming family's business in Hong Kong developed rapidly. From industrial operations to investment in real estate, stock and other market competitions, the business expanded day by day, and the assets also increased day by day.
Huang Ziming has kept a low profile throughout his life and has never liked to be interviewed. His life story is also rarely known. At that time, the market value of his company was comparable to that of Hong Kong tycoon Li Ka-shing. However, Huang Ziming, the honorary president of the Hong Kong Chaozhou Chamber of Commerce, said humbly: "I don't have that much money. Compared with Li Ka-shing, he is a shark's fin and I am a fan." But in my opinion, it seems inappropriate to describe oneself as a fan. If it is a "bird's nest", it is quite appropriate!
Huang Ziming had a total of 6 sons and 5 daughters. His sons were all named with the character "Chuang", and in order of eldest and youngest, they were named "Bao Jiangshan Zeng Yao Hua". Three of the sons are in charge of three major businesses in the family business, including watches, bird's nests, real estate, etc., which are currently important industry areas of the family. The eldest brother Huang Chuangbao and the third child Huang Chuangshan are the locomotives of the family's business development.
Huang Ziming passed away due to heart disease in June 2003. During his lifetime, facing this huge foundation, Huang Ziming worked hard until he was in his 70s. He said that when his sons rushed too far or walked too fast, he could hold them back. Regarding family businesses, Huang Ziming has something to say first: "Dividing businesses does not separate families." All wealth belongs to the family as a whole.
Puning The Mazha School donated by Thailand's richest man Huang Ziming
During the 2008 financial crisis, the Huang family's wealth "evaporated" a lot, leaving the entire family business with a debt of 1.9 billion. Among them, there is the problem of "putting eggs in the same basket". Another problem is that these family companies are inextricably linked by blood, and there are phenomena of mutual borrowing and mutual shareholding. When a problem occurs in one company, other companies are immediately implicated.
Later, the Huang family business "learned from the painful experience" and decided to make structural adjustments, completely cutting off the connections between the subsidiaries, reducing their shareholdings in each other, and making each of them a relatively independent entity.
Huang Ziming has no plans to separate the family and has established a trust fund to manage private funds.The trust fund is named "Minghua", which, like the Minghua Stadium and Minghua Park he donated, is taken from the last characters of the couple's names. He thinks this is a good idea, "In the future, children will receive support from this fund. How much will the children earn? It will depend on their contribution to the family business."
Although the "non-separation of families" caused a chain reaction to their family and caused great losses, Huang Ziming's sons still followed their father's wishes and determined to continue the family business. Now Huang's business has entered the third generation of the family. It can be said that "different businesses do not separate families" has both joy and worry for Huang Ziming's family.
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A wave of talk]
The four typical cases of the family inheritance model of Taiwan's Ting Hsin Wei brothers and Thailand's Huang Ziming family should be said to be "differentiating the business but not the family". They have the joy of success and the lessons of failure. Compared with other inheritance models, "splitting the business but not the family", in addition to the inheritance of wealth, puts more emphasis on the emotional inheritance between families. The most important thing in corporate inheritance is the inheritance of corporate culture and core values, and the "no separation of families" model is conducive to the inheritance of family culture and core values by future generations and continues to pass them on.
Of course, the model of "separating businesses without separating families" also faces major challenges in today's era. Technology is changing rapidly, and development models are constantly being updated. Especially with new lifestyles, new technologies, and new ideas, many old practices passed down from generation to generation have become unable to keep up with the times. Businesses within the family are divided but not the family. How to cope with the transformation and changes in development is an important issue and a difficult problem. The failure of the two major families, Ting Hsin and Huang Ziming, to "separate their businesses but not their families" is actually an exposure of problems in this regard.
In addition, after the new generational succession of "different businesses do not separate families", the succession will not be taken over by one or two people, but by a team. Huang Ziming once joked that his family has many children. Except for the two of them who always serve as backup, the successors can form a football team. "Dividing businesses does not separate families" means that in addition to balancing the distribution of wealth and passing on the industry well, it is also necessary to resolve the mixed emotional factors within a large team, which cannot be understood and interfered by outsiders.
Every family business that reaches a certain stage of development will face the choice of splitting up or splitting up the business. Many family businesses in Hong Kong, Taiwan and overseas Chinese have developed into the third generation, while most of them in mainland China are still in the transition stage from family businesses to family businesses. In terms of succession, you can find more experience from the development of their family businesses, so as to create a path for your own everlasting business.
During the construction of the first generation of enterprises in Hong Kong, Taiwan and overseas, like the Ting Hsin and Huang Ziming families, they have always wanted the family to learn to cohere, and on this basis, allowed the development of "divisions" of their own careers. Division of labor, division of industry, and no division of families have become mainstream choices, thereby establishing a complete system for the family, giving each child his own career, that is, the diversified development of the family business.
Ting Hsin and the Huang Ziming family have "different businesses but no separate families." Although there will be certain crises due to mutual involvement, the power of unity is great. As long as they are readjusted, it can actually become a good way to avoid risks. In addition, "different businesses do not separate families" can also show diversity in cultivating family talents.
If the family is too large and has many members, in order to handle the inheritance well, it is recommended to establish a family office, a family board of directors, etc. If necessary, a "family constitution" can also be formed like Lee Kum Kee , so that family mottos and rules can be passed down from generation to generation.
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