Global Family Business Survey 2014

A new KPMG Global Family Business Survey 2014 ‘Family matters: Financing Family Business growth through individual investors’ examines the various possible sources of funding for family business, and explores in detail the synergies between HNWIs and family business.

With the number of people who live off the family business revenue increases, additional pressure for growth needs to be addressed. The strong desire of family businesses to remain majority ownership creates the opportunity for HNWIs to bridge the funding gap via partnering. The survey results indicate that despite the challenges, family businesses and HNWIs can make excellent business partners. The report offers insights for HNWIs and family businesses who are embarking on this journey.

Some survey findings:

  • 58% of family businesses are currently seeking external financing to fund their investment plans, and many find their fundraising options limited.
  • 44% of HNWIs have previously invested in a family business and the vast majority (95%) say that it has been a positive experience in comparison to their other investments.
  • 60% of HNWIs are looking for investments with reasonable risks and reasonable returns, and are focused on long-term capital appreciation. Both of these traits are well matched by investment in family businesses.

KPMG in association with Mergermarket surveyed 125 family businesses and 125 HNWIs. Respondents were based across 29 countries worldwide, covering a total of 82.4% of global GDP.