Author: Fidan

The Formula for Enduring Success in Family-Owned Businesses

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What makes family-owned companies not just survive – but outperform?

Family-owned businesses generate more than 70 % of global GDP and employ 60 % of the world’s workforce. Their impact – and their example – are extraordinary.

A recent McKinsey & Company Study Report found that family businesses combine resilience with superior long-term performance.

Across 1,800 companies analyzed, family-controlled firms achieved higher economic profit and shareholder returns than non-family peers—often by thinking in generations, not quarters. The report finds 4 critical mindsets and 5 strategic actions that are specific to high performing family-owned businesses.

1. Purpose Beyond Profits

McKinsey found that 93% of top-performing family businesses define a clear purpose beyond financial returns—and more than half actively measure their social and environmental impact.
These organizations view purpose as an operational compass, shaping decisions from hiring to community engagement.

TZG Perspective:
We believe that values create value. Our TZG Way centers on integrity, meritocracy, and devotion to excellence—principles that guide not only investment decisions but also how we support our portfolio leaders.
When purpose is embedded in culture, performance follows.

2. A Long-Term View and Reinvestment Mindset

The outperformers McKinsey studied share a “decades mindset,” favoring reinvestment over dividends. Between 2017 and 2022, family-owned firms delivered dividend yields 12% lower than peers yet achieved higher economic profit and proved far more resilient in crises.

TZG Perspective:
Patient capital is an advantage. We reinvest earnings to fuel talent growth, innovation, and efficiency rather than optimize for short-term payouts.
Through multi-year planning and close operational partnerships, we help our companies scale without sacrificing their DNA.

3. Financial Caution and Resilience

Family businesses are known for conservative balance sheets—and McKinsey’s data confirms it.
Their net debt-to-equity ratios are 6–10 points lower than peers’, providing the buffer needed to weather recessions and rebound faster. The lesson: prudence enables independence.

TZG Perspective:
As a family office, we share that discipline. Every acquisition is structured to strengthen—not strain—the balance sheet.
We prioritize flexibility and optionality in financing, ensuring our partners can invest when opportunity arises and stand resilient when markets tighten.

4. Efficiency and Decision Speed

Unlike clunky corporations slowed by layers of bureaucracy, high-performing family enterprises excel at fast, values-aligned decision-making making them more efficient at both investing and operations compared to their peers.
McKinsey found that they balance agility with deliberation – acting quickly when aligned, patiently when perspectives diverge.

TZG Perspective:
Our partnerships reflect the same model.
We invest in leadership development and culture building, empowering management teams with autonomy while maintaining clarity of purpose and accountability.

5. Strategic Actions That Differentiate Winners

McKinsey highlights five strategic actions that, combined with these mindsets, deliver outsized results:

  1. Diversification
  2. Dynamic resource allocation
  3. Capital and operational efficiency
  4. Relentless focus on talent
  5. Strong governance

At The Zaf Group (TZG), our mission to build impactful, values-based businesses has led us to partner with exceptional family- and founder-led companies such as ACP CreativIT and Storr.
The McKinsey findings validate what has guided our “TZG Way” investment philosophy from day one—and reflect how we build enduring value:

  • Drive smart growth through a combination of organic expansion and strategic M&A that strengthen the core.
  • Pursue operational excellence, focusing relentlessly on high-impact growth levers.
  • Invest in people and governance, ensuring both continuity and accountability.

These are principles we live by at TZG – helping family businesses grow stronger, smarter, and more sustainable. Purpose, patience, prudence, and people are the cornerstones of lasting success.

Learn More

Explore the full McKinsey report including a link to the original Study HERE.

Visit our Portfolio to see the family-owned companies TZG partners with.

Follow The Zaf Group on LinkedIn for more insights on leadership, growth, and long-term value creation.

Press Release — The Zaf Group Partners with Storr

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The Zaf Group Partners with Storr, Strengthening a Century-Old Legacy in North Carolina

Chicago, IL & Raleigh, NC — October 1, 2025 —

The Zaf Group (TZG), the family office of former GE, Motorola, Nortel, and Blackstone executive Mike Zafirovski and his wife Robin, is pleased to announce its strategic partnership with Storr Office Environments, one of the Southeast’s premier workplace solutions providers and among the largest Steelcase dealers in the United States.

Founded in 1914 and headquartered in Raleigh, NC, Storr has built more than a century of trust with clients through its long-standing partnership with Steelcase and its customer-first approach. In addition to offering high-performance office furniture and architectural products, Storr has steadily expanded its portfolio of workplace services — from strategy and design to move management, refurbishment, and ongoing facility support — while maintaining a strong culture of community engagement and charitable giving, upholding its simple guiding principle: “Do what’s right, do your best, and treat others as you would like to be treated”. These offerings are uniquely tailored to reduce complexity, extend the value of client investments, and ensure long-term satisfaction.

This partnership reflects TZG’s commitment to family- and founder-led businesses with enduring values and a long-term vision. Together, TZG and Storr will focus on continuity, stability, and investment in people — strengthening the foundation that has made Storr a trusted partner for generations, while equipping the company for its next chapter of growth.

Mike Zafirovski

“Storr is a remarkable company — not just for its legacy of charity in the community, but for its outstanding team, deep customer relationships, and unwavering values,” said Mike Zafirovski, Founder and Chairman of The Zaf Group.

“We are honored to partner with Tom, the Storr leadership, and the broader Storr team. Our goal is to support and enhance what already works, elevating the organization’s capabilities while preserving its strong cultural foundation.”

“Partnering with TZG allows us to preserve the authentic Storr experience while unlocking new opportunities for growth,” said Tom Vande Guchte, CEO of Storr.

“Mike and his team understand the dynamics of family-led businesses, and we’re excited to see how this collaboration will strengthen our ability to serve clients, invest in our people, continue our tradition of giving back to the community, and stay true to our heritage.”

Tom Vande Guchte CEO of Storr

For TZG, this marks another step in its values-based strategy to grow exceptional companies. Following its successful partnership with ACP CreativIT — a rapidly expanding U.S. IT solutions provider — and the transition of ABCO Systems earlier in 2025, TZG remains committed to building long-term value by investing in great teams, strong cultures, and sustainable growth strategies.

Together, TZG and Storr will continue to deliver the deep-rooted client partnerships, local presence, community commitment, and exceptional service that have defined Storr’s history — now reinforced by TZG’s resources, network, and long-term perspective.

About The Zaf Group (TZG)

The Zaf Group is a family office established by Mike Zafirovski and his wife Robin, dedicated to partnering and growing family- and founder-led businesses with a long-term mindset. Its portfolio includes ACP CreativIT (IT solutions), the recently transitioned ABCO Systems (systems integrator), and now Storr (office & workplace solutions). TZG’s mission is to build great companies guided by values-based leadership, operational excellence, and a deep commitment to people development.
Learn more at www.thezafgroup.com

About Storr

Founded in 1914, Storr Office Environments is a trusted leader in workplace solutions across North Carolina and the Southeast. As a premier Steelcase dealer, Storr provides high-performance office furniture, architectural products, and a complete range of services tailored to customer needs — including Workplace Strategy and Design, Office Relocation and Reconfiguration, Furniture Repair and Refurbishment, Facility Maintenance and Day-Two Support, Records Management, PreOwned Furniture Solutions, Cleaning and Sanitization Services, Delivery and Installation, and Secure Storage.

Storr’s century-long success is rooted in its customer-first approach and strong charitable commitments: every solution is designed to simplify complexity, maximize value, and strengthen both client partnerships and the broader community.
Learn more at www.storr.com

What Makes Founder-Led Businesses Unique

Posted on by Fidan

Family- and founder-led companies have always been the backbone of the U.S. economy. They account for over 60% of GDP and employ more than half of the nation’s workforce. Despite their critical role, these businesses are often overlooked or misunderstood by investors seeking short-term returns. But family-owned businesses possess some unique characteristics that are especially relevant in today’s fast-moving business landscape. Here’s why we pay close attention when a founder or family is still at the helm.

A Long-Term Mindset
Founder-led companies are usually built for the long haul. Founders think in building a legacy, not just making it to the next quarter, and are more likely to invest in innovation, reputation, and relationships over time even if it means short-term sacrifices. In a world of economic swings and constant disruption, it’s the companies with long-term orientation that tend to remain focused and adaptable

Deep Customer Relationships
Many founders started by winning one customer at a time — personally. That early commitment to solving real problems, being available, and listening deeply often carries through as the company grows. This results in family-owned companies having very strong customer loyalty, and usually a brand built on trust, not mere marketing spend.

Cultural Clarity and Purpose
Founder-led companies often have a culture shaped by the founder’s values. That kind of clarity is hard to replicate in professionally managed organizations and larger corporations where leadership turns over frequently. Family owned businesses usually have stronger team alignment and faster decision-making. They tend to hire and retain people who understand the company’s purpose and direction.

Operational Discipline with an Owner’s Mentality
Many founders grow their businesses with limited resources. That experience builds into their operational habits: running lean, solving problems directly, avoiding waste, and maintaining a close, hands-on approach to operations. This “owner’s mindset” translates into companies that are more resilient, especially in uncertain markets.

As a family business ourselves, we believe founder-led companies carry something deeply valuable: long-term vision, strong culture, and a deep sense of ownership.

When a founder is still at the helm, or their values still shape the organization, you tend to find a clarity of purpose that’s hard to replicate. These businesses usually know who they are. They’ve weathered ups and downs not by chasing trends, but by staying true to their customers and teams. They’re often leaders in niche industries with loyal clients, deep operational knowledge, and strong reputations.

But founder-led doesn’t mean perfect. Succession planning can be unclear. Growth may have outpaced systems. Founders might struggle to delegate or scale sustainably. That’s where thoughtful partnership can make a difference, one that respects the founder’s legacy while unlocking new potential.

TZG’s own approach is to combine values-driven leadership with professionalization and strategic support creates powerful outcomes for our portfolio of family owned businesses.

For long term investors like us, focused on strategic stewardship, not quick flips, these kinds of companies offer more than financial upside. They offer alignment with our own values, and the chance to help something already great grow even stronger.

If you yourself are, or know a founder or a family business owner thinking about the future, feel free to contact us. We’re always interested in speaking with well run family businesses that are profitable, resilient, and ready for the next chapter, especially in B2B services, niche manufacturing, or healthcare, where operational excellence and reputation matter deeply.

ABCO Systems to Begin New Chapter with Element Logic Following Successful Run with The Zaf Group

Posted on by Fidan

The Zaf Group is pleased to announce the sale of ABCO Systems, a leading provider of material handling solutions, to Element Logic, a strategic acquirer specializing in warehouse optimization technologies. This transaction marks an exciting milestone for ABCO and positions the business, its employees, and its customers for continued growth, innovation, and long-term success.

The sale reflects The Zaf Group’s commitment to building enduring companies, and where necessary, identifying strong partners to lead them through their next phase of evolution.

“It has been a true privilege to partner with ABCO over the past five years.” said Mike Zafirovski, Chairman and CEO of The Zaf Group. “The people and the culture are what make this company so special, and we’ve been constantly inspired by the team’s passion, resilience, and commitment to excellence. As stewards of the business, our goal was always to support its long-term growth and to invest in its people. We’re incredibly proud of what we have accomplished together and have full confidence that the Element Logic team will continue to build on this foundation and take the company to even greater heights.”

During its partnership with The Zaf Group, ABCO experienced substantial growth and transformation, including:

• Doubled the size of company while maintaining a strong company culture and employee engagement, earning “Best Places to Work in NJ” recognition for three consecutive years


• Achieved significant growth through disciplined execution, market-driven solutions, and strategic geographic expansion via multiple new office locations


• Relocated its headquarters to a new, modern facility featuring a state-of-the-art showroom

These achievements are a testament to the strength of ABCO’s leadership team, the dedication of its employees combined with the long-term investment philosophy and value creating capabilities of The Zaf Group. The leadership team is immensely proud of the growth they’ve achieved together and is energized by the opportunities that lie ahead with Element.

“We are proud to have partnered with The Zaf Group over the past five years,” said Seth Weisberg, CEO of ABCO Systems. “Through smart growth, a relentless focus on customers, and a deep investment in people and infrastructure, the team has built an exceptional platform. We are confident that our new partnership with Element Logic will build on this momentum and allow us to continue to lead in the material handling solutions industry.”

“This is more than an acquisition – it is a perfect fit. ABCO’s strong commercial presence, complementary solutions, and customer-first approach are fully aligned with our values. By combining our strengths, we are empowering customers to optimize performance through holistic warehouse automation solutions that scale with their needs.” Krish Nathan, CEO – Element Logic Americas.

The Zaf Group would also like to thank Stillwater Capital for their partnership and guidance throughout the transaction process. Their thoughtful approach and industry expertise were instrumental in identifying the right strategic partner to carry ABCO Systems forward.

About ABCO Systems:

ABCO Systems is a full-service systems integrator specializing in end-to-end material handling and automation solutions. They design, build, and support scalable systems that combine racking, mezzanines, conveyors, sortation, robotics, pick modules, and more – tailored to the unique needs of each facility.

As consumer demand accelerates and supply chains grow more complex, ABCO helps businesses stay competitive by integrating smart, flexible technologies that streamline every stage of warehouse operations – from order picking and packing to storage and fulfillment. Their solutions are built through trusted partnerships with leading automation and storage manufacturers, ensuring long-term performance and ROI.

Whether modernizing existing infrastructure or developing a new distribution center, ABCO Systems is committed to guiding clients through every stage of the process – from concept and engineering to installation and ongoing support. Delivering systems and building lasting solutions.

About Element Logic®

Element Logic optimizes warehouse performance through cutting-edge technology, AI-driven software, and tailored solutions that enhance efficiency, accuracy, and scalability. Element Logic is a global technology company founded in 1985, with more than 900 employees across 30 countries specializing in intelligent warehouse automation, and it’s the world’s first and largest AutoStore partner.

With a strong heritage rooted in innovation, Element Logic empowers businesses across industries to maximize success by automating workflows and improving logistics operations. Their unique combination of expertise, proven track record, and commitment to both, people and technology, make them the preferred partner for warehouses aiming to gain a competitive edge.

At Element Logic®, people are the greatest resource. It is their bravery, passion, and reliability values that enables them to deliver smarter solutions for their customers to succeed. Optimizing warehouse performance is not just a slogan – it is their mission.

Learn more at www.elementlogic.us and follow them on LinkedIn and YouTube. 

About Stillwater Capital:

Stillwater Capital is one of North America’s leading mid-market M&A advisors, having completed over 120 transactions in the past 20 years. Stillwater is dedicated to entrepreneurs and is singularly focused on generating outstanding outcomes for clients as they divest or acquire. Learn more at https://stillwatercapital.ca/