Current Challenges of Family Enterprises: Transfer of Ownership and Management

Mojca Emeršič, head of family business consulting at EY Slovenia, emphasizes that Slovenian family businesses, which are an important part of the Slovenian economy, are vital for the sustainable development of the domestic economy: "These companies not only create jobs and stimulate economic growth but also preserve and strengthen local communities." Emeršič, who has led the publication of all the books in the collection over the past decade, adds that these stories have also become an important source of understanding family businesses. Currently, many family businesses in Slovenia are facing challenges related to the generational transfer of ownership and management.

Collection of 100 stories of Slovenian Family Businesses

Ten family businesses who are currently facing or have recently faced such challenges are featured in the latest book "EY Family Business Slovenia 2024." The collection of stories, which EY Slovenia has been researching and documenting since 2014, has reached 100 with this year's edition. "This milestone edition is proof of the lasting legacy and crucial importance of family businesses in the economic and social fabric of our country. The family businesses whose stories are collected in this book and the entire collection have survived economic challenges, adapted to market changes, and remained steadfast in their commitment to excellence and sustainability. They embody the values of hard work, integrity, and perseverance, as well as innovation and adaptability, which are the foundation of every successful business," said Janez Uranič, CMP of EY Slovenia, during the presentation of the 10th book.

You can read the stories of the included companies in the current edition below.

EY Family Business Award of Excellence goes to Kronoterm

Every year, EY Slovenia selects one Slovenian family business that follows best business practices to receive the EY Family Business Award of Excellence. This year's award went to Kronoterm, a leading Slovenian manufacturer of heat pumps. In a highly competitive industry, they achieve excellent results recognized worldwide. They have over 110,000 satisfied customers in the domestic market and 18 foreign markets.

An independent commission consisting of Prof. Dr. Boštjan Antončič from the Faculty of Economics at the University of Ljubljana, Mag. Edita Krajnović from Mediade, and the commission chair Matjaž Čadež, founder of Halcom and MBILLS companies, stated in their explanation that Kronoterm's story is an inspiration for generations and a model of how family entrepreneurship significantly contributes to the development of the Slovenian and European economic, technological, and social landscape. "Kronoterm's modern laboratory, worth over half a million euros, is not just a technological gem. It is also a tool with which they set new standards in energy efficiency. With innovative products, they focus on a niche where they outperform competitors. By combining sustainability and technological advancement, they are relentlessly strengthening their market position," they added. The company is currently successfully led by the second generation, Bogdan Kronovšek, surrounded by family members. You can read the interview we conducted with him upon receiving the award here.

The EY Excellence Award for Family Business has previously been awarded to companies such as Varis Lendava, Intra lighting, LOTRIČ Meroslovje, Vivapen, Lumar IG, KLS Ljubno, and Roto.

Stories of Successful Slovenian Family Businesses Featured in the 10th Book of EY Family Entrepreneurship

DOBA Business School: Pioneers of online learning since before the turn of the millennium.

The name of the DOBA (which translated to ERA) is a blend of the surnames of its founder Jasna Dominko Baloh, but over time it has taken on the meaning of what they advocate and implement daily: lifelong learning. The group consists of four units: a higher vocational school, a language center, an international business academy, and the most recognizable – DOBA Business School. In 1999, they were the first in Slovenia to introduce online study options. Read their story.

DOM TRADE: From foundations to rooftops and beyond.

DOM TRADE is synonymous with quality in the construction trade, offering comprehensive solutions for building and renovating homes for over three decades. Their core activity is the sale of construction materials, ceramics, and bathroom equipment, complemented by home delivery and advising customers on the proper selection of materials. In 2021, they successfully expanded their activities into tourism by opening the Triangel Boutique Hotel in Gozd Martuljek. Read their story.

Gabrijel Aluminium: 60 years of growth.

The company has grown from a small craft workshop in the 1960s into a globally recognized manufacturer of aluminum components committed to quality and excellence. They supply aluminum components to renowned global brands such as VW AG, Samsung, Philips, BSH, and others. They claim they have never backed down from any challenge or turned away any customer: "We go all the way until we find a solution." Read their story.

JASON: Entrepreneurial spirit, courage, and hard work are the family DNA.

The portfolio of real estate and land, the company Jason, Olma, which dominates a significant share of lubricant production in the Slovenian market and the markets of Southeast Europe, and Galvanotehnika, which continues the tradition of quality galvanizing of materials, the dream Istrian estate Monte Rosso with olive oil and wine that win awards... All of this is signed by the Gorjanc family, either independently or in partnership. Their business direction is indicated by their surname: GOR (which translated to UP). Read their story.

MALALAN: Eternity woven into watches and jewelry.

The company Malalan is a story of perseverance intertwined with a love for jewelry and timepieces, told for three-quarters of a century by the third generation of the family. They sell prestigious watches and jewelry, are certified service providers for the most eminent Swiss watchmaking houses, and have a goldsmith's workshop where their own collections of gold and diamond jewelry are created. Read their story.

MAROVT GROUP: Five connected companies, three connected generations.

"More than 50 years of advanced manufacturing tradition" is the slogan of the group, which brings together the companies Marovt, MTEH, Inkolteh, Aklimat, and Enset under its umbrella. Synergistically connected specialists from various fields range from high-quality forging, automation, and robotization of production, IT architecture, the production of designer aluminum radiators to the manufacture of metal structures for solar panel installations. Read their story.

METALIKA: Equipping mega yachts with wooden products.

Metalika specializes in outfitting the interiors of large ships and yachts, and their niche focus has brought them market success and growth. They are increasingly involved in the segment of outfitting mega and super yachts, where they not only manufacture furniture but also assemble it, and have developed complete engineering and their own project management. They demonstrate innovation with their bold product Nautilus Sleeping Pods – capsules for sleeping on ships. Read their story.

RLS: Champions of measurement systems.

The family company RLS Merilna tehnika, according to director and founder Janez Novak, "makes small things that usually end up in big ones." Their sensors can be found in various industries, including robotics, medical, and even aerospace technology. The sensors enable precise measurement of positions and movements, which is crucial for controlling speed, angles, and other parameters in many high-tech devices. Read their story.

ROBOTEHNIKA: A technological gem hidden in the outskirts of Markovci.

In northeastern Slovenia stands the company Robotehnika, which has been offering solutions in the field of CNC metal processing and automation and robotization of production processes since its establishment in 2007. Today, they employ 47 people; they export nearly a third of their products, primarily to German-speaking countries and the USA, where customers appreciate them for their exceptional quality and adaptability. Read their story.

TULI: From a home garage to over 70 countries worldwide with the second generation.

With an optimized website and top-notch user experience, they now supply machine elements to almost the entire world and are considered leaders in their industry. In over 72 countries, they help solve challenges in the field of bearings, linear and drive technology, and with their knowledge and rich experience, they also offer consulting and technical support to customers. Read their story.

The stories are available in both Slovenian and English versions in print and on the website. With the support of SPIRIT Slovenia, a public agency, books from previous years are also available in Slovenian libraries, making the collection part of Slovenian national identity. Since 2016, SPIRIT has actively supported and partially co-financed the publication of the book and promotes Slovenian family businesses both in Slovenia and abroad through Slovenian business clubs and embassies.

About EY Family Business Consulting

EY Slovenia offers numerous services to support family businesses in succession issues in the context of organizational, tax, legal, and other aspects, as well as in other areas of development and (international) growth. The services are targeted and tailored to each business and the specific requirements of the industry in which it operates, with the aim of supporting multiple generations within the company. Through a local program, we connect and present Slovenian family businesses and link them in a global context.