Kārlis Krastiņš, Managing Partner at Prudentia Riga, becomes a Board Member of the Baltic Family Firm Institute (BFFI), a non-profit association, is founded as a pan-Baltic network of scholars and practitioners, with the main aim to support building successful and strong family businesses.
Baltic Family Firm Institute’s vision is to be the leading network of scholars and practitioners in the field of family enterprise in the Baltic States. The three pillars of BFFI - research, advisory and education - provide research-based knowledge and tools for family firm members, consultants, and academics.
Other aims of the organization are: 1) to promote sustainable development of multi-generational family businesses in Estonia, Latvia and Lithuania, 2) to develop research and training programs related to the activities of family firms and their corporate governance, 3) to implement information campaigns to promote the establishment of family firms, and 4) to organize events for family firm members.
“Family-owned firms make up cornerstone of Baltic economies. Some are smaller, some bigger, but the challenges are the same. What is our firm’s competitive advantage? Can we successfully compete with multinational companies? What is optimal capital structure of our firm? What is the market value of our firm? We think we can help with some answers and share industry best practice with you,“ says Kārlis Krastiņš, Partner at Prudentia, who brings to the table industry experience on family firm succession planning, capital attraction, and sale to investors.
Anete Pajuste, Finance Professor at the Stockholm School of Economics in Riga, explains the idea behind the creation of this network: “Over the last three decades, dramatic changes have happened in firm governance practices, and the first generation of entrepreneurs is nearing retirement. The topicality of family firm research, advisory and education in the Baltic context has become evident during conversations with family firms, consultants and policy makers. There is increasing evidence of the positive role played by family firms, including both publicly listed and privately-owned entities. However, one of the main challenges for family businesses is succession. It is becoming more complex due to changes in family, management and governance systems. Sound governance reduces conflicts of interest, maintains family harmony, and creates value for all stakeholders. Business transfer is a critical milestone in the life of many family businesses that with the ageing of the population of entrepreneurs becomes even more acute.
BFFI members will benefit from regular networking and experience sharing club events, receiving news on family firm topics and regular updates from a comprehensive family firm database, as well as having access to pro bono advisory hours from legal, financial and management experts. More information about member categories and benefits can be found here.