Founder-led companies: Why you should take notice

A popular framework endorsed through time is investing in companies where the business is still run by the original founder, who still has a significant impact on business operations, and the cultural imprint they put in place remains intact.

Investors often refer to companies as being superior investment opportunities because they are ‘founder led’ or run with a ‘founder’s mentality’. Does this inevitably lead to better outcomes?

In this feature article we put founder-led businesses to the test. We aim to identify if they really are superior investment opportunities and highlight the common characteristics of those that are successful, as well as the implications for investors when the founder departs.