The due diligence that investors in family businesses must not skip
Academic experts from SMU and UOB Kay Hian advise minority shareholders in family-controlled businesses to conduct thorough due diligence. They emphasize that investors must scrutinize company filings and exercise voting rights to mitigate risks associated with family influence.
Why it matters
As family-owned businesses are common, understanding the specific governance risks is essential for protecting retail and institutional investor capital.
In a commentary, SMU Associate Professor of Accounting (Education) Yuanto Kusnadi and Kenneth Goh, Director of Private Wealth Management at UOB Kay Hian, opined that minority shareholders should understand the specific risks highlighted in company filings.
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