Family (Business) Matters

April 2018 | Volume I

A family business or a family owned business may be defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family (source: inc.com).
80% of all Canadian businesses are family-owned. But did you know that family businesses financially outperform non-family businesses?
One of the main reason why family businesses have better result, is the long-term vision. Family owned businesses management tend to value more long-term metrics and vision. They are more focused on the survival of the company to the “next gen” while other businesses leaders are focused on short term goal (source: Credit Suisse Research Institute).
Here are some interesting facts about family business in Canada:

65% Canadian businesses plan to pass on the ownership to the next generation, but 45% do not have a succession plan

– Source : PWC 2016 Family Business Survey

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80% of all Canadian businesses are family-owned and contribute 60% of Canada’s annual gross domestic product (GDP)

– Source: PWC 2016 Family Business Survey

Only 3% of family businesses make it to the fourth generation, making the third generation the most likely to sell

– Source: Harvard Business School

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12% of family businesses make it to the third generation

– Source: Harvard Business School


If you want to know more about family businesses, how to manage tangible such as tax and estate planning

and the not so tangible family dynamics, please #ASKFL or register to our Newsletter.

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