“Succession in Armenian Business” – open and frank discussion

On April 6, 2026, the Fast-Forward 2026 conference dedicated to the future of business leadership, took place in Yerevan. The event was jointly organized by the Banks.am portal of Mediamax Media Company and Boyden Armenia.

The conference partners included Wilco Wealth Management, SIL Insurance, Alfa-Pharm and the European Campus of the University of York. 

“Succession in Armenian Business: The Desired and the Real” - this was the title of the second panel discussion at the Fast-Forward 2026 conference, moderated by Ara Tadevosyan, Director of Mediamax Media Company.
 
“Leaving” the business is difficult

Edgar Avetisyan, CEO at PROFAL

PROFAL was founded by my father and his partners. I recently took over as CEO, and the children of the other founders also participate in management.

Transferring a business to the next generation is a complex process with many subtleties. Founders often feel they understand the company best, having built it from scratch and “layered everything on top of everything.” Even when they step back from daily operations, they retain deep knowledge of every detail.

“Leaving” a business is difficult. Without 10-15 years of preparation, a “sudden” transfer can be risky. If the business relies on a single person and the successor is unprepared, the company can collapse. 

Our founders always dreamed of passing the business to their children and discussed it often. Yet, when the moment arrived, it was still difficult. We were only 25-28 years old when we began actively managing the company, and generational differences led to frequent clashes.

It’s important to understand one crucial thing: succession requires readiness on both sides. Founders must be willing to pass the business on, but heirs must also be ready and capable of assuming responsibility. If you cannot convince your parents that you are prepared, the opportunity may never come.

Sanasar Beglaryan, CEO of Flash Company

In our case, the succession process began with a crisis. I was serving as commercial director in one of our companies when a crisis hit Flash, our largest or “mother” company, prompting my transfer.

I recently came across a thought that resonates deeply: “Companies need young, smart people with the courage to innovate and, if successful, turn everything upside down – but they also need experienced, older people to ensure nothing essential is overturned.” 

It may sound paradoxical, but while the founder is the driving force behind a business, they can also be the cause of its slowdown or even collapse if they fail to recognize the moment when they have reached their peak and must make way for change. This is precisely where corporate governance becomes essential.

“Talking about capital, money, inheritance is often taboo”

Davit Gasparyan, Chief Client Relationship Manager at Wilco

We are in the post-Soviet era, where significant private capital has only existed for about 30 years. Today, people aged 50-70, who created and managed this capital, are entering the stage where they must also manage succession. This process needs to start early and be approached systematically, whether the heir comes from the family or from management.

The legal aspects of succession are often the easiest; the psychological aspects are the most challenging. In our culture, open dialogue about capital, money, and inheritance is often taboo, and few families discuss them freely.

In our experience working with at least six families, founders involve heirs in decisions about capital management, giving them the opportunity to present ideas. This also makes it easier to raise succession issues. 

Many founders do not imagine that their business can not only survive but even grow with minimal involvement from them. At the same time, heirs often hesitate to assume responsibility, not realizing that they have the same opportunity to make mistakes and learn from them, just as the founders did. 

“Legislation does not ensure the continuity of capital”

Varuzhan Avetikyan, Chairman of the Board of Evocabank, Managing Partner of Andersen in Armenia law firm

Succession and inheritance are not only private concerns – they also matter to the state. Continuity ensures wealth, and the accumulation and transfer of capital across generations create lasting national prosperity. While companies are private, they also form part of a country’s national wealth.

Current inheritance laws in Armenia are largely inherited from the Soviet era. Over the past 30 years, private capital – including businesses and assets – has grown steadily, yet existing legislation does not guarantee the continuity of these enterprises or the cash flows they generate. As a result, businesses may face serious challenges.

While family inheritance is a primary focus, non-kinship transfers – to foundations, communities, universities, and other institutions – also remain unresolved. For businesses founded in the 1990s, these issues are urgent. Without timely solutions, a significant portion of the capital accumulated over the next 20 years could be lost.

“Business shouldn’t revolve around one person”

Edgar Avetisyan, CEO at PROFAL

Founders need to understand that when a business revolves around them, it is essential to change the management model over time. Continuing with the same model is often a path to failure.

Personally, I do not want PROFAL – or any partner-led business – to revolve around me. Our goal is to prepare today so that within the next 10 years, the company can operate under a more advanced management model. The state also plays an important role in this process, as clear models and regulations are currently lacking

Varuzhan Avetikyan, Chairman of the Board of Evocabank, Managing Partner of Andersen in Armenia law firm

During generational transitions, there is often a tendency to think: our elders built the business and did so successfully, but today’s reality is different and requires change to achieve further growth. In navigating this transition, it is essential to answer three key questions: what core values should be preserved and passed on to the next generation; what is the story or legacy that must continue; and within what context the business operates.

The context in Armenia in the 1990s was fundamentally different from that of the 2000s or today. Yet this shift is often overlooked both by founders and successors.

David Gasparyan, Chief Client Relationship Manager at Wilco

What should be passed from one generation to the next is not simply experience, but critical thinking. Founders should transfer their approaches to decision-making and partner selection.
In the post-Soviet context, many agreements between founders and partners remain informal. It is therefore crucial that the transition of these relationships is as smooth as possible. Successors should be introduced to partners early on and actively involved in ongoing negotiations.

Sanasar Beglaryan, CEO of Flash Company

A crisis is truly not just a challenge – it is often a driver of development. In many cases, it is precisely crisis situations that push a company forward.

When the new generation takes over, it should, in a sense, “put the system into crisis”. However, the key issue is whether it has the competence to implement meaningful change. At the same time, successors must understand that succession first of all entails responsibility.

Read also: 

Independent directors, conflict of interests and evolution

Fast-Forward 2026: A new environment for discussing sensitive business issues

Ani Khchoyan

Photos by Emin Aristakesyan