Family businesses are not solely about passing the torch from one generation to the next or relying only on capital or shares. As a result, selecting leaders must be based on merit with strategic succession to sustain the family business, said the country's leading businessmen and successors to these family enterprises at a seminar on Tuesday.
The seminar, titled “Where Family Values Meet Future Vision: Strategy for Sustainable Succession,” was held at the Metropolitan Chamber of Commerce and Industry (MCCI) office in the capital.
MCCI jointly organized this program with Rajah & Tann Asia, a leading regional law firm based in Singapore, and AAZ & Partners, a prominent law and management consulting firm in Bangladesh.
Head of one of the country's largest family-owned companies and MM Ispahani Ltd chairman Mirza Salman Ispahani said: “The idea that someone will get leadership just by having shares is wrong. It is important to have skills, experience, and proper education.”
“It is not right to hand over responsibility just because a son or daughter is the eldest. For this, planned succession is essential,” he added.
Ispahani also stated: “Even if the business is initially started as a sole proprietorship, as the scope of the business expands, it is not possible to run everything with relatives. Then professional management becomes necessary. Our organization has been run under professional management for many years.”
Agreeing with him, Square Pharmaceuticals PLC's managing director Tapan Chowdhury said: “Nobody can be made CEO just because they are sons or daughters of the owner. The most qualified person should be given the leadership. Otherwise, the organization will not progress or survive.”
“I learned from working with my father at the beginning of the business that leadership means carrying the burden of responsibility and principles. A family friend once said in front of my father, 'Why am I not becoming the managing director?'—that was embarrassing. In our culture, such things cannot be said publicly. So the founder has to decide how the organization will run in his absence.”
"We collaborate as a team and acknowledge each other's contributions," he continued.
MCCI president Kamran T Rahman said: “For ages, family-owned businesses have been key to our economy. Besides driving employment and innovation, they also preserve values, traditions, and legacies passed down through generations. Looking forward, though, we must face this often-missed fact: succession is more than a passing of the torch—it’s strategically essential. Lasting family firms require solid finances and market presence, alongside forward-thinking leadership changes, upheld values, and a revitalized vision.”
“Succession planning is often postponed, sometimes avoided, and too frequently misunderstood. Many times, the absence of a clear strategy leads to disruption, fragmentation, or even the dissolution of businesses that took decades to build. This is not a matter of fate—it is a matter of preparation. Structured succession planning allows families to align their values with their long-term goals, to identify and nurture future leaders, and to ensure continuity in governance and culture. It also provides clarity to stakeholders, confidence to investors, and stability to employees. In short, it safeguards legacy while enabling growth,” he also shared.
In the opening remarks, Anis A Khan, director of MCCI and managing partner of AAZ & Partners, said: “In South Asia and across much of the region, family-owned businesses form the backbone of our economies. They are the quiet powerhouses—driving innovation, employment, and community development. Yet, as these businesses mature, they face a critical juncture: how to ensure continuity without stagnation and how to embrace change without eroding identity. This is where strategy meets soul.”
"As we look ahead, succession planning must evolve beyond contingency. It must become a cornerstone of strategic thinking. In an era marked by rapid technological change, shifting demographics, and global uncertainty, the ability to pass the baton with clarity and confidence is not just a family concern—it is a business imperative."
"We must ask ourselves, how do we cultivate leadership that is both visionary and values-driven? How do we build governance structures that support continuity without compromising agility? And how do we ensure that the next generation inherits not just a business, but a purpose?” he added.
