Three men could not join the company
By Leo Paulo · About me
A rule accepted in 1982, a study showing that almost nobody is ready and the mental model that fixes it: decide the rules before the conflict arrives.
Five pieces, three minutes. If you have partners, this issue is for you.
The engineer who accepted a condition about three sons-in-law
In 1982, a banker handed 16% of his company to an engineer, with one condition about three men in his own family...
The engineer accepted.
Twelve years later, the final agreement still was not signed.
His name was Belmiro de Azevedo. He was the son of a farmer and carpenter, failed the first grade and paid for part of his studies by tutoring Maths. In January 1965, aged 26, he joined Sonae. Two years later, he was already general manager.
Now, the condition.
The banker was Afonso Pinto de Magalhães, the founder. He asked for only one thing: Belmiro could never appoint his three sons-in-law to the board. The rule was set, the dispute with the heirs lasted years and the final agreement was only signed in 1994.
But the best part comes later.
When his turn came, Belmiro did it differently. In 2007, he left his executive roles and handed the baton to his son Paulo, ten years before he died. In 2015 he ended his career as a manager and, according to ECO, left his son at the helm in a smooth transfer of power. In 2025, Sonae had revenues of 11.4 billion euros.
Only 2.3% of business families are ready to hand over the company
In October, the Julius Baer Family Barometer 2026, made with EY, surveyed more than 700 financial professionals who advise ultra-high-net-worth business families.
In Portugal, according to Luís Barreto Xavier, quoted by Forbes Portugal, family businesses are 70% to 80% of the total and about 65% of GDP.
Pre-commitment
Decide the rules when you are calm, before the conflict arrives.
Ulysses had himself tied to the mast before hearing the sirens. After that, he could not change his mind.
The years between the sons-in-law rule and the final agreement
12: That is the number of years between the sons-in-law rule (1982) and the final agreement (1994). A written rule does not remove the conflict. It gives it a starting point.
Whoever only decides in the middle of the conflict decides worse.
- This week, book 1 hour with your partners. Write down 3 things: who can join management, how the company is valued if someone leaves and who decides on a sale.
- Bring the children into the conversation early. If it is a family business, in the study only 18.5% of families involve the heirs in decisions on an equal footing.
- Set your exit with a date. Even if it is ten years away.
The cheapest rule is the one written in peacetime.
On a good day, agreeing a rule costs one uncomfortable hour. On a bad day, the same rule costs lawyers, months and, very often, the relationship.
Notice what changes between the two days. The rule is the same. What changed is what each person has to lose, which is why nobody decides with a cool head once the conflict has started.
Decide the rules while you still do not know who will benefit from them.
This week's action. Pick one decision in your company that still depends on good judgment (who signs off above a certain amount, for example) and write the rule in three lines before Friday.
Chesterton's fence
In 1929, G. K. Chesterton described a reformer who finds a fence across a road and wants to tear it down because he cannot see the use of it. His answer is simple: if you do not see what it is for, you cannot remove it. Go away, think, and only come back once you can explain why it is there.
- FirstFind out who put the rule there and what problem it was meant to solve.
- ThenIf the problem is gone, remove the rule with a clear conscience.
- No answerIf you cannot find out, assume there is a reason you do not see yet and go slowly.
This week's action. Pick one process in your company that everyone thinks is absurd and, before you change it, find out who created it and why.
Source: G. K. Chesterton, The Thing (1929), chapter The Drift from Domesticity
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Who writes it
Leo Paulo. I am co-CEO of Bitalk, the biggest ecosystem of entrepreneurship and business content in Portugal. I tell real business stories as Leo Entrepreneur.
Sources
- Jornal Económico: Apenas 2% das famílias empresárias de grande património estão preparadas para vender ou transmitir o negócio
- Forbes Portugal: Apenas 2,3% das famílias empresárias de elevado património estão preparadas para vender o negócio
- Observador: Belmiro. O homem que soube ganhar com as derrotas
- ECO: O percurso de Belmiro de Azevedo na Sonae
- Forbes Portugal: Sonae com resultados recorde em 2025, 11,4 mil milhões de volume de negócios
Frequently asked questions
Who was Belmiro de Azevedo?
He was a Portuguese manager who joined Sonae in January 1965, aged 26, and two years later was general manager. In 1982 he received 16% of the company, on condition that he never appoint the founder's three sons-in-law to the board.
What is pre-commitment?
It means deciding the rules when you are calm, before the conflict arrives. The classic example is Ulysses, who had himself tied to the mast before hearing the sirens.
How many business families are ready to hand over the company?
According to the Julius Baer Family Barometer 2026, made with EY, only 2.3% are fully prepared to sell or hand over the business. 80% point to the lack of consensus in the family and 60.6% to the emotional attachment to the company.
What can I do this week with my partners?
Book 1 hour and write down 3 things: who can join management, how the company is valued if someone leaves and who decides on a sale.