Survey results show that the top priorities of HNWIs and Family Owned Businesses align, making this underutilization surprising - HNWIs name long-term capital appreciation 37percent as their top driver for investment, while family businesses name long-term orientation towards investment returns as their top investor characteristic 23percent.
If you would like any information on our family business consulting services, click here.You can read about their journeys with communication and conflict, passing on wisdom, preparing for the future, and much more, in the report, and hear from them in person in videos that you can click through to watch. One of the key strategies for growth is embracing innovation. On the other hand in India, the future for families and HNWIs working together looks bright as 8 out of 10 HNWIs said they were interested in investing directly in family businesses. SEW also links to the financial success of the business. Flipboard Banks main source of family business financing, role of HNWI increasing: KPMG 44 per cent of HNWIs have previously invested in a family business and 95 per cent says that it has been a positive experience in comparison to their other investments. Despite geopolitical concerns in the UK, family businesses hold a continued confidence for the future. This has meant participation and investments though avenues like crowd funding, angel and venture funding and high net-worth individual funding. We measured perspectives on communication the next-generation definitely want more of it , future growth and performance the next leaders want to go into new markets , transition strategies entirely absent in many families , confidence and commitment the next generation are feeling much more nervous about taking over than the incumbents expect , and governance for the future some formal structures are in place, but much more could be done. Further interest rates continue to be high, ranging from 12 percent to 18 percent and making it difficult for family businesses to service interest comfortably. In fact, on most factors the incumbent generation were more satisfied than the next generation in line — a worrying finding for those intending to pass the baton soon. Banks have often been the prime source of funding for Family Businesses as private equity funding, according to KPMG, often requires the entire business to be sold to maximize value in the event of an exit, and corporate strategic partners often see any investment as part of a longer-term plan to secure full control. We hope you find the survey findings and family stories as interesting and thought-provoking as we have, and that they inspire and empower you on the path to building even more prosperous family businesses. If you would like any information on our family business consulting services, click here.
Over half of family business owners have increased staff numbers in the last 12 months, with a clear majority mapping recruitment and training into strategic plans. To discover more about the intergenerational differences in family businesses, and the keys to success for the future, you can read our full report.
Despite geopolitical concerns in the UK, family businesses hold a continued confidence for the future.
One of the key strategies for growth is embracing innovation. Of course, statistics are very useful to paint an overall picture. We measured perspectives on communication the next-generation definitely want more of itfuture growth and performance the next leaders want to go into new marketstransition strategies entirely absent in many familiesconfidence and commitment the next generation are feeling much more nervous about taking over than the incumbents expectand governance for the future some formal structures are in place, but much more could be done.
KPMG in association with Mergermarket, surveyed family businesses about the types of investment they require, their investors of choice and their previous experience of receiving investment from HNWIs or other family businesses. KPMG says as substantial lenders, banks in India still maintain an approach of largely mortgage and personal guarantees and have not moved sufficiently towards business model and cash flow-based funding.