Credit Suisse examines how family-owned businesses differ from peers, focusing on performance, governance, and long-term value creation across a global dataset of 1,000 firms. The paper argues these companies have historically outperformed by roughly 4% annually since 2006, though that advantage varies by generation, region, and market conditions.
The Family 1000: Post The Pandemic
Credit Suisse
Eugène Klerk
Research
40 Pages
Key Takeaways
Consistent Outperformance Trend: Family-owned firms delivered ~400 bps annual excess returns since 2006, with cumulative outperformance reaching 55% versus global equities over the same period.
Stronger Profitability Metrics: EBITDA margins and cash flow returns are about 14% higher than non-family peers, supported by disciplined capital allocation and lower payout ratios.
Generational Performance Gap: First-generation firms show higher growth rates, while later-generation businesses experience weaker returns and slower innovation, with performance gaps emerging over multi-year periods.
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