CELEBRATING THE WORLD’S TOP 750 FAMILY BUSINESSES
Article | January 2019 | by Craig Postons
Here a CMG, we’ve been delighted to see much more being acknowledged (and written) in recent years about the importance of family businesses to economies around the world. We even published our own independent research in 2015, highlighting the significant impact of Canadian family businesses on our economy – from the employment and infrastructure they create and the taxes they pay to the philanthropic contributions they make to communities and important causes across the country.
Now, Family Capital, an online publishing company dedicated to the global family enterprise sector, has published – in recent days, together with PwC – a ranking, based on annual revenues, of the top 750 family businesses globally.
It’s a fascinating list.
Many of the names are familiar, and many others are not. Together, these 750 family businesses generate annual revenues of more than $9 trillion and employ more than 30 million people around the world. We’re especially delighted to see 20 of Canada’s own business families included in the ranking. Names like McCain, Rogers, Thomson, Watsa, Sobey, Desmarais, Pattison, Weston, and others.
We also know – from multiple research sources – that family businesses tend to survive longer and represent a lower-risk investment than non-controlled public firms. A report by Credit Suisse in 2017 specifically pointed to family-owned businesses outperforming broader equity markets in every region and sector by an annual average of 400 bps per year since 2006. “The financial performance of family-owned companies is superior to that of non-family-owned businesses. Revenue and EBITDA growth is stronger, EBITDA margins are higher, and cash flow returns are better.”
The latest Family Capital ranking of families is rich in detail – from the families behind the businesses, when they were founded, and the business categories they operate in, to data on revenues, number of employees, and other information.
CMG is privileged to support many of Canada’s most accomplished business families in enduring for the long term, and we look forward to seeing their names on future updates of this ranking.