Family company IPO governance checklist

Work through this with the family shareholders, the board and legal counsel before appointing banks.

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Family alignment 0 / 6

Usually owned by: Family shareholders

All family branches agree on the decision to list and the timeline
Late disagreement is a common reason IPOs stall.
Each branch's intention to sell, hold or buy is documented
Defines the secondary component and lock-ups.
Target family stake after listing agreed
Drives control, free float and index eligibility.
Family charter covering roles, values and conflict resolution in place
Gives stability across generations.
Pooling or voting agreement among family shareholders drafted
Keeps family votes together after listing.
Rules for future family share sales (pre-emption, orderly placements) agreed
Avoids disorderly selling and market surprises.

Usually owned by: Family, legal counsel

Control options compared: majority, blocking stake, partnership-limited structure, share classes, holding
Each option has valuation and index trade-offs.
Venue and index rules checked for the chosen structure
Some structures are excluded or down-weighted by indices.
Tax effects of the structure for family members reviewed
Restructuring can trigger personal tax consequences.
Succession of family shares (inheritance, gifts) planned
Prevents forced sales or fragmentation later.

Usually owned by: Chair, family council

Independent board members appointed or identified
Investors require independence from the family.
Family members' board roles defined by competence
Board quality is scrutinised by investors.
Executive roles separated from family roles
Clarifies accountability.
Succession plan for CEO and key managers documented
Investors price management continuity.
Remuneration of family members in management aligned with market practice
Executive pay is disclosed.

Usually owned by: CFO, legal counsel

All transactions with family members and family entities listed
Required disclosure and investor focus.
Leases, supply and service agreements with family entities put on arm's length terms or ended
Removes conflicts of interest.
Private expenses separated from company accounts
A common red flag in due diligence.
Loans and guarantees between company and family members settled or documented
Affects net debt and governance.
Related-party transaction approval policy adopted
Needed for listed-company governance.

Usually owned by: CEO, IR

Family's long-term commitment articulated in the equity story
Turns family ownership into a positive signal.
Dividend policy agreed between family and board
Families and investors often have different priorities.
Plan to communicate the IPO to employees, customers and the community
Family companies have strong local stakeholder ties.
Spokesperson rules for family members set
Uncoordinated statements can breach disclosure rules.