Mammoney - Your Ultimate Guide to Personal Finance & Investing

How the Gerdau Family Built a Governance Model That Lasts Generations Introduction In an era where most family-owned businesses collapse by the third generation — with statistics showing that only about 12% survive to the third and a mere 3% to the fourth — the Gerdau Group stands as a towering exception. Founded in 1901 by João Gerdau in Porto Alegre, Brazil, as a small nail factory, the company has evolved into one of the world’s largest steel producers, operating in 10 countries with more than 30,000 employees and annual revenues exceeding $13 billion (as of recent reports). What is most remarkable is not merely its financial success, but the sophisticated family governance architecture that has enabled five generations of the Gerdau family to maintain unity, purpose, and control while professionalizing management and expanding globally. This article examines the deliberate, decades-long construction of a governance model that has preserved wealth, values, and influence across more ...