Cyril Benier, Alain Caffort (Pictet): Family business

November 2021

Scientific studies show that listed family businesses on average have a strong basic financial profile and generally perform better than public companies1.

What makes family businesses successful?

Based on our own scientifically proven analysis as mentioned above, we have identified several reasons why family businesses perform better:
மு Entrepreneurship – The shared DNA of successful family businesses, often inspired by the founders.
Active Involvement – The desire to protect, improve and strengthen the organization for the next generation.
• Socio-emotional wealth – Non-financial aspects of the company – such as identity, reputation, influence and legacy.

Should investors sell now? Or is it worth joining Neo?

All of these are somehow related to an important characteristic of family businesses – long-term thinking.

This means that the long-term balance of the company is prioritized for short-term results, financial discipline is maintained during turbulent periods and the focus is on the efficiency of capital allocation.

In general, family businesses take a patient and focused approach to investing.

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For this article, we have read in depth the basic profile of family businesses and the factors that explain why they outperform non-family businesses in the long run.

We looked at two main sectors: retail and industrial.

Both generally have established and mature companies and are strongly represented in both family companies, making the companies often family-owned for many generations …

Read more in full Article “Family Business – The Real” Patient Capital “.

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