More than half of all United Arab Emirates-based family businesses that begin preparing for a public float are turned off by the intense scrutiny and corporate structure of a listed company, advisors have told Arabian Business in a rare insight into the mindsets of family-run organisations.
As the market again becomes attractive for initial public offerings (IPOs) after years of little interest following the onset of the global financial crisis, scores of companies are re-engaging advisors to help them go public.
But the fear of family squabbles becoming public and patriarchs losing their overriding control of the company have seen majority abort their planned IPOs before the process is completed - and usually without it being publicly revealed - advisors at KPMG and Ernst & Young said.
“There’s a lot of aborted IPOs,” KPMG partner Abdul Wahab said.
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