Helping an Egyptian pharmaceutical family through succession and restructuring

The Malaks are an Egyptian family with operating businesses in pharmaceuticals. Following the passing of their patriarch, the family faced a period of transition. Ownership and management of the family business passed to the second generation, consisting of three sons and one daughter. The family sought to preserve unity, ensure long-term participation in the business, and restructure ownership that avoided the application of forced heirship rules in Egypt while maintaining equality across family branches.

Client’s Goals

• Provide a smooth generational transition following the passing of the patriarch
• Set out clear, fair ownership arrangements across all family branches, creating a structure that can evolve and support future generations as the family grows
• Preserve family unity and allow family members to remain involved in the operating businesses
• Mitigate the impact of Egyptian forced heirship rules on succession planning.

Our Recommendations

That the family be supported by our Family Office team to:

• Restructure the operating businesses into a single holding company structure
• Align trust ownership so that each family branch holds an equal interest in the holding company and underlying operating businesses
• Involve our fiduciary team to support long-term succession and ownership planning
• Establish separate trusts for each second-generation family branch to hold family wealth and business interests
• Implement governance mechanisms to support decision-making as the family expands into future generations
• Create a holding company consolidating the family’s pharmaceutical operating businesses.

Outcomes (To Date)

• The family has achieved a seamless transfer of ownership to the second generation, underpinned by a well‑defined governance framework
• One trust per family branch has been established, providing clarity and long-term succession planning
• A strong, scalable structure has been built that encourages and sustains the participation of third‑ and fourth‑generation family members
• Equal ownership has been established across family branches, reducing the risk of future disputes.

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.

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