FROM FAMILY TO PUBLIC: EXAMINING IPOS AS A GROWTH PATH FOR FAMILY FIRMS

The aim of this thesis is to enhance society's knowledge, especially among entrepreneurs, specialists, and families, about the challenges, risks, and opportunities for family businesses to be listed on the stock market. Many companies believe that being listed could be a great path for growing their revenues, increasing market recognition, enhancing their credit profile, developing governance, and raising market value. However, there are serious challenges and risks associated with the process of obtaining capital from the market. Using a semi-structured interview protocol to examine family-listed and delisted firms in Italy, it was possible to clarify some important practical features of the IPO path. The findings indicate that companies are able to achieve their objectives through the IPO and believe that going public was the right choice for their businesses; the main perceived advantages are improved corporate governance and increased market visibility. On the other hand, the main challenges and disadvantages are related to higher costs, public disclosure of information, and greater regulatory control. We conclude that the IPO of family firms can be very successful and an appropriate option for family firms that want to grow. However, to achieve all the potential benefits, family businesses need to assemble a professional and competent team to deal with regulatory challenges and be financially and emotionally prepared for all the changes.