PwC Transactions Blog

We are pleased to present you the Belgian results of the ‘Family Business Survey 2010‘, which aims to familiarise you with some of the typical issues and challenges that family business owners are facing today and how they are preparing for the future. 

Our national survey was based on an international survey and so useful comparisons with the international scene could be made.  579 Belgian family-owned businesses participated to this study that was realised in cooperation with Trends Top. 

Read the key findings: Executive Summary_DUTCH - Executive Summary_FRENCH

Read the full report: PwC Family Business Survey_DUTCH - Family business report_FRENCH

Read the international report: International Family Business Survey

The recent financial turmoil in many ways might have affected family owned businesses. Be it through the exposure to further specific industry issues/downturn due to a lack of diversification of the family wealth or be it because the available financial reserves have suffered significantly, e.g. due to operational and/or financial losses incurred or working capital surges.

In addition, the Trends Top 30.000 survey showed self-financing of companies in general at its lowest over the last 3 years (2008). While the reasons and sources thereof can be quite diverse (lower profits, more distribution or increased liabilities), self-financing might still be further hit by the effects of the economic crisis in 2009 (and …2010) and this at a moment of increased need of finance. Demand for financial resources is therefore likely to increase in the mid-term (even if funds are available within the company – cfr. Trends Top 30.000, ‘Loans to safeguard savings’ in 1 out of 4 companies).

Any given family business therefore needs to ask itself the existential question on how to continue. Whether it is its ambition to do so on a fully stand-alone basis (and whether from a financial/wealth point of view it is capable to do so), whether (temporarily) a certain level of external capital is required or whether the family wants to sell its business. Even in the first scenario, it is highly likely (and recommended) that the family diversifies its activities and hence is likely to make divestments/acquisitions. Needless to say that in the other scenarios, family businesses are likely to bring new oxygen to the M&A market in the mid-term.