Generational Wealth Transfer - Challenges and Opportunities

Generational wealth transfer is not only a human challenge, but also a business opportunity. Research shows that only 25 out of 100 family businesses successfully survive the handover from first to second generation, and only six of those manage to pass the baton on to the third generation. The challenge lies in separating the personal, emotional and complex family aspect from the professional business aspect, for the benefit of the entire family and to uphold the company and family’s good name.

Family businesses outperform others

106.4
Billion NIS
stock market value of family companies included in the TASE Family Company Index
29
Family companies
included in the TASE Family Index
* As of December 31, 2019.

Listing is Good for Your Family and Excellent for Business

Keeping Control

Listing a company for public trading doesn’t have to affect the control families have over their businesses. Compliance with corporate governance principles can actually assist families in resolving conflicts related to the way they conduct their business.

Creating Share Value
and Liquidity

When companies list, they create objective value for their assets, and enable existing shareholders to realize their holdings and enjoy the fruits of success that have been amassed over generations.

Simplifying the Shift in Ownership Structure

Corporate governance principles are a boon for managing a family’s business since they delineate a clear holding structure for each family member and differentiate between company ownership and the professional way the business is run.

The TASE's Family Companies Index – TA Family

In 2018, the new TA-Family Index was launched, consisting shares of companies included on the "family companies" list established by the Raya Strauss Center for Family Business Research at the Coller School of Management at Tel Aviv University.

Success Story

Shapir Engineering

2014

  • Initial public offering – raised 439 million NIS floating 20% of company's shares Market cap at offering date - approximately NIS 2.2 billion
  • Revenues in 2014 - approximately NIS 2.3 billion

2015

  • Inclusion in the TA-75 and TA-100 Indices
  • Raised NIS 382 million in series A bond issuance



2016 - 2018

  • During these years, the controlling shareholders sold another 17% of their shares in the company, increasing the public float to 37%
  • Revenues in 2018 - approximately NIS 3.1 billion

2019

  • Joined the TA-35 Index
Shapir Engineering

Over This Time Period,
Shares Yielded


Market cap

9.2

Billion NIS

Yield - 383%

Primary share indices - TA-35 and TA-125

The market value of bonds is NIS 1.2 Billion


Bonds

Market cap approximately

950

million NIS

Primary indices – Tel Bond-Shekel,
Tel Bond-Shekel A

Series rating by Maalot: ilA+/Stable
(December 2019)

There’s so much more we can tell you about raising capital on the Tel Aviv Stock Exchange

We’d love to meet with you so we can get to know your company and help you to take it to the next level.

For more information:
Lior Navon - Head of Sales and Market Development,
TASE

Mail: liorn@tase.co.il
Tel: +972-76-8160536
Mobile: +972-52-8322621