PE Takes Fewer Risks than Family Owners


March 5, 2015

For all the talk about PE and risk-taking, it turns out that family run firms are actually doing more diversifying to achieve growth than many of their peers, with 38% having entered a new industry in the past few years, compared to only 25% of businesses owned private equity and owner-managed firms, according to PWC’s new report, Business as Usual is Private Companies Biggest Threat. PWC says the ownership structure of family owned firms enables them to make more risky moves than publicly-traded or private equity owned firms. Decisions about diversifying are made with an eye on longer-term pay-offs. Driving risk-taking is the need to transform and address the biggest challenges to growth over the next five years. The survey revealed that the challenges are expected to come from technological advances, followed by a shift in global power and demographics. (Image source: PWC)

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