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      How can your family business build long term growth and sustainability?

       

      In a dynamic world, successful family businesses grow with intention – anchoring their strategies in purpose, governance and sustainable value.

      Our latest research report prepared in collaboration with STEP Project Global Consortium and KPMG Private Enterprise using data collected from 2,683 businesses from over 80 countries provides a deeper understanding of the core drivers of family business growth – effective governance and leadership, a focus on sustainability across generations and the capacity for strategic investment to enhance performance. This report considers:

      • “Why growth and value creation matter” and “what constitutes good growth?”;
      • What are the characteristics of boards of high performing businesses and how their composition influences future growth;
      • The correlation between high performance and sustainability and the impact of multi-generational engagement; and
      • How “Growth” capital and M&A activity can be harnessed by family businesses keen to diversify their markets and secure the foundations for future growth.

      Key facts and figures

      67% 

      of High Performing businesses had formal boards (10% more than the total sample).

      32% 

      of the 2,683 of the businesses surveyed reported “High Performance” relative to their peers.

      48% 

      exhibited High Sustainability of these 70% had formal boards and over 80% reported High Performance.

      46% 

      had high levels of transgenerational entrepreneurship (TES) of these 46% reported high performance 43% more than the global sample.

      Family businesses should focus on:

      Governance matters

      High performing businesses were 10% more likely to have a formal board structure in place.

      Build boards for impact

      Businesses that exhibited high sustainability were typically led by boards with greater female participation.

      Scale enhances performance

      Businesses with more than 250 employees were more likely to be high performing than their peer group, and exhibit higher levels of sustainability and entrepreneurship than the global cohort.

      Encourage entrepreneurship across generations

      Family businesses with high transgenerational entrepreneurship (TES) lay the foundations for long term success

      Strengthen family relationships

      Working closely, and effectively, together is a significant contributor to out-performance.

      Multi-generational engagement enhances sustainability

      As family businesses transition from generation to generation, consider enhancing the depth of multi generational engagement. 

      Communication can always be improved

      Families need to pay particular attention to communication to ensure family relationships remain strong. 

      Consider how you may grow ‘inorganically’

      Family Businesses are increasingly looking to engage in M&A activity and finding new sources of ‘growth’ capital funding as a basis for diversification and international expansion. 

      Engaging in M&A activity requires experience and confidence

      Before developing a strategy of M&A consider the capacity of the leadership and the board to undertake the transaction. 

      How do you continue to grow ‘family capital’?

      We are witnessing the evolution of ‘family businesses’ becoming ‘business families’ investing more widely outside the equity in their own business — how will you grow in the future?

      Get in touch

      For informed guidance on entrepreneurship and family business issues, please contact Camilla Cullinane of our Private Enterprise team - we'd be delighted to hear from you.

      Camilla Cullinane
      Camilla Cullinane

      Partner

      KPMG in Ireland

      We can help you no matter the size & stage of your business
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