Family Business | KPMG Family Business Times | December Edition (2021)
Welcome to our quarterly update sharing our latest insights, ideas and events tailored for owners of family businesses.
As the year draws to a close, we reflect on the challenges and successes of 2021. Despite continued uncertainties created by Covid-19, family businesses have shown their resilience and appetite to invest and grow for the future. The focus on business transformation, social responsibility (including ESG) and the vibrant M&A market look to continue through to next year giving us an optimistic outlook for 2022.
With COP26 recently wrapped up in Glasgow, our world leaders have made important progress in pledging climate co-operation. However, as family business leaders, now is the time to take action to realise a sustainable and responsible future for generations to come. To help you build your plans, and answer key questions around your company’s exposure to climate change, we have a host of materials from our Climate IQ assessment tool and Greenovate for a better economy report, in partnership with Cambridge University, so you can unleash the positive in net zero.
We also react to the Chancellor’s 2021 Autumn Budget in our Budget on a page guide covering the key measures and through our Autumn Budget 2021 insights page which breaks down implications on employers, individuals, private businesses and different sectors.
If you have any questions or comments regarding any of the topics in this newsletter, or other matters you would like to discuss, please contact us at familybusiness@kpmg.co.uk.
We hope you find this edition interesting.
In this edition:
- ESG – a family business strength
- Unleashing the positive in net zero
- Protecting your family business against fraud
- Disruptive Philanthropists Global Report 2021
- Keeping it in the family – why succession is on the rise
- Have you got an exit plan?
- Life after exit: where will the road lead next?
- Autumn Budget 2021 – Commentary and reactions
Miles Davies
Partner, Private Equity Value Creation
KPMG in the UK
ESG – a family business strength
ESG is undoubtedly an area of competitive strength for family businesses. It’s been a core part of how family businesses operate, in some cases for many generations. But as the subject evolves and the focus on it increases, it’s well worth family firms reviewing how it interplays with the rest of their business strategy and operations.
Three core themes have emerged as a framework for the conversation on ESG – social responsibility, leveraging patient capital and business transformation.
Unleashing the positive in net zero
The climate emergency presents complex problems that require collaboration and systemic action across geographies, sectors and generations.
Read our Greenovate for a better economy report, in collaboration with Cambridge University, which investigates how innovation on green-related activities can contribute to the prosperity of the future economy. Or use Climate IQ, a multi-industry risk management tool that can run multiple scenarios to address the questions you have around your business’ exposure to climate change.
Protecting your family business against fraud
Fraud thrives in times of crisis and the COVID-19 pandemic has proven to be no exception. Factors such as supply chain issues, workforce constraints and the withdrawal of the furlough scheme in September 2021 is putting further pressure on employees and management alike. So, what can family businesses do?
Disruptive Philanthropists Global Report 2021
As the world transitions to a new normal and societies seek to recover from the economic impacts of COVID-19, the ESG agenda is climbing the list of priorities for organizations, individuals and broader society. Against this backdrop, we are seeing the emergence of a new wave of modern philanthropists adopting innovative approaches to philanthropic activity.
We conducted surveys and in-depth interviews with the disruptive philanthropists of today to explore the macro trends shaping the giving landscape, as well as case examples and key learnings from philanthropists, which may help others seeking to maximize their philanthropic impacts.
Keeping it in the family – why proactive succession is on the rise
Many family businesses changed their operating models during the pandemic. Often, these decisions called on the insight of younger generations, consequentially speeding up discussions of family succession. And with anticipated reforms to Capital Gains Tax (CGT) and Inheritance Tax (IHT) coming down the track, considering your future plans earlier that you might have could be beneficial.
Chris Smith, Director, Family Office and Private Client explores key themes to consider.
Have you got an exit plan?
Private equity houses have built up significant capital through the pandemic which they’re now looking to deploy. If your thoughts are beginning to turn to selling the business, now could be an opportune time. Graeme Williams, Director, Corporate Finance, explains what to consider and which routes to sale are available.
Life after exit: where will the road lead next?
For many, it’s the culmination of a lifetime’s work. You’ve sold your business, the deal has completed and a large amount of cash has landed. Where do you go next? Chris Smith, Director, Family Office and Private Client expands on how to make the transition from business owner to passive investor a successful one.
Autumn Budget 2021 – Commentary and reactions from our experts
The Chancellor of the Exchequer stated that his 2021 Budget would start the work of preparing for a new economy post COVID-19. With a focus on departmental spending increases and investments in infrastructure, many of which were pre-announced, what are the main tax impacts for business and individuals?
Read our Budget on a page for a quick guide covering the key measures or visit our Autumn Budget 2021 insights page for a breakdown of implications on employers, individuals, private businesses, multinationals and different sectors.