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Campden FB/Mishcon de Reya survey: final results

The Campden FB/Mishcon de Reya survey canvassed opinion from family businesses all over the world as to their views on the economic climate. The final results are presented here


Where is your family business based?

Asia-Pacific – 18.8%

Europe – 36.9%

North America – 35.6%

South America – 8.7%

 

What generation are you?

Founding – 24.7%

2nd – 29.5%

3rd – 21.9%

4th –15.1%

5th-plus – 8.9%

 

Are you a principal in the family business?

Yes – 78.8%

No – 21.2%

 

How would you rate trading conditions at present?

1 (very bad) – 12.8%

2 – 33.1%

3 – 38.3%

4 – 12.0%

5 (very good) – 3.8%

 

Have you had to lay off any staff in the past six months?

Yes – 54.1%

No – 45.9%           


Has the current climate increased tension between active and passive stockholders in your family business?

Yes – 27.3%

No – 72.7%

 

Were there already tensions before the current economic crisis? 

Yes – 22.3%

No – 77.7%


Have you seen an increase in opportunities to purchase companies in the last six months?

Yes – 64.3%

No – 35.7%

 

Are you actively seeking acquisitions?

Yes – 46.1%

No – 53.9%

 

If yes, are you looking to leverage your own capital or to buy in cash?

Leverage – 17.6%

Buy in cash or equivalent – 23.5%

A combination of leveraging and cash/cash equivalent – 55.9%

Other, please specify – 2.9%

 

Is your preference to:

Continue under the current ownership structure – 88.7%

Execute a management buyout – 3.2%

Effect a trade sale – 3.2%

Float the business – 4.8%

 

Have you planned for the possibility of selling the family business? 

Yes – 21.3%

No – 78.7%


What is the likelihood of your family selling the business in the next 2 years?

Likely – 6.4%

Possible – 20.8%

Unlikely – 72.8%


Has the current economic downturn increased or decreased the possibility of the family selling the business?

Increased – 14.2%

Decreased – 15.7%

No change – 70.1%


Have you received an approach to buy your family business in the last 12 months?

Yes – 37.6%

No – 62.4%

 

What would be the principal reason for selling the family business?

No other family members willing/able to take over – 18.3%

The business is not sustainable under market conditions – 15.4%

Differences with the family between those individuals operating the business and those who are not – 9.6%

Industry consolidation – 12.5%

Receiving an offer you can't refuse – 63.5%

 

Which of following would you anticipate being the biggest drawback to a sale?

Getting the right price – 36.1%

Desire to create a legacy – 22.2%

The extended family losing the income stream – 7.4%

The unity that the business brings to the family – 18.5%

Desire to give the next generation more than just money – 40.7%

Click here to read an analysis of the full results

Click here to read a geographical analysis of the results

Click here to email us and share your views on the results

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