Another interesting piece that highlights the growing number of investors, many family offices amongst them, that are looking at family businesses for their investment potential.
Given our recent research which highlighted a willingness of family business owners to accept alternative sources of investment, even for a stake in the business, this trend is likely to continue.
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Family firms are seen as good vehicles in which to invest, are recognised overall to present lower risk in many cases and are often seen as offering better governance, taking a long term view and with aligned objectives.
There does appear to be more of a willingness to consider family firms as investment opportunities from the investor sector, and family firms would also appear to be more willing to consider broader financing options, a trend that many believe is likely to continue.
A family business, which is to say, small business is undoubtedly the backbone of many western economies. While a majority of investors tend to avoid making investments in business enterprises governed by stringent rules and SOPs, the last few years have seen an increasing number of investors putting a significant portion of money in their family businesses.