Noticed this article on BCG’s website: http://www.bcg.com/expertise_impact/publications/PublicationDetails.aspx?id=tcm:12-38221
"Private equity and other investors have learnt from the crisis. They will increasingly base their investments on the question: “Is the owner engaged as true owner that creates operational value rather than value driven by financial levers?” This report is based on our private equity database, interviews with private equity investors and over 100 academic articles. Developing a framework for operational value creation, it addresses the question what owners (public, private, family) can learn from private equity firms in order to improve the competitive position of their company."
IMHO: This is why Indian companies are doing well now and will do even better in the future. Our companies are mostly promoter (family) owned, unlike most British companies. American companies are mixed. Plenty of family owned companies still around (Dell, Walmart for example) and plenty of “no one really” like the much despised (at the moment, anyhow) GS.
It would be nice if Indian MBA colleges (like say WIMWI) spent more time talking about the good bits of family owned business instead of sticking with the “professionally managed is the best” spiel. We do eulogize the family owned businesses that do really well … we’re all proud of Wipro and Reliance-ADAG and yet we’re not proud enough about the small/mid caps that are family owned and that are capable of investing for the long term. For taking real risk and reaping real reward, not merely “accounting” gains.