SEATTLE, WA — (Marketwire) — 12/12/12 — The (PFBI), in partnership with , a national law firm representing companies ranging from start-ups and family businesses to FORTUNE 50 corporations, and , a diversified boutique investment bank serving companies across the globe, today announced the results of a survey of 100 of the Pacific Northwest-s leading family businesses across diverse market sectors including professional services, manufacturing, and retail. The survey provides insight into the current issues and challenges these businesses are facing, and the strategies and initiatives they are implementing to drive growth.
“Despite the recent economic challenges faced by businesses across the U.S., results of the PFBI survey indicate that family businesses in the Pacific Northwest have held strong in the face of difficult conditions,” said . “Roughly half of respondents reported increases in sales over the past three years, with 40 percent of respondents showing an increase of more than 5 percent. Looking to the future, many family businesses also show a positive outlook, with 54 percent reporting that they expect to increase the number of employees over the next two years.”
Although sales increases and hiring forecasts are a positive indicator, market conditions continue to be a significant concern among family businesses, with 51 percent of respondents identifying this area as one of the greatest external challenges they face. Government policies and regulation, including taxation, were also identified by family businesses as significant challenges, with 62 percent citing this as a major area of concern.
The survey also revealed the internal challenges these businesses face, and how they are addressing them:
More than 50 percent of respondents identified “Growing Sales and Revenue” and “Maintaining or Growing Profit Margin” as significant internal challenges
In order to address this challenge, 53 percent of family business owners say they plan to invest in marketing and sales activities over the next two years, and 44 percent plan to invest in IT infrastructure and website development.
Finding and developing skilled employees was also cited as a top challenge by 42 percent of respondents, and 28 percent said that they plan to implement new training, education, and development initiatives over the past few years.
Forty-nine percent of respondents identified transitioning the business from one generation to the next as one of the top challenges facing their family business. While 53% of the businesses surveyed expect leadership to transfer to a family member, only 33% have a written succession plan in place.
“Family business remains a crucial component of the Pacific Northwest business community and economy, and this survey underscores their continuing strength and commitment to growth,” said , a partner at Perkins Coie LLP. “It also illuminates several challenges that these businesses face. Beyond the hurdles posed by tax laws and regulatory conditions, and the recent uncertainty surrounding those issues, family businesses must also deal with added complexity when it comes to succession, ownership and estate issues, as well as the internal politics of working with family.”
“Of course, this survey also tells us that family businesses are facing plenty of internal challenges beyond succession planning,” said . “Advances in technology are changing the way these companies conduct business, and the planned investments in IT infrastructure and web design, as well as marketing initiatives — many of which are likely to involve an internet or mobile component — indicate that PNW businesses are taking important steps in adapting to evolving business, sales, and marketing models.”
“These survey findings provide a benchmark for the state of family businesses in today-s market, and offer important insight as we continue to guide regional businesses through the complex issues surrounding family ownership of small businesses,” said . “The survey also indicates growth opportunities for many family businesses. For example, only 37 percent of respondents indicate that they do business outside the U.S., and helping these businesses reach global markets could propel strong growth in the years to come.”
The full report on the survey findings can be downloaded from the PFBI website at . The current survey is considered a baseline study, and follow-up surveys are planned. If you own a family business in the Pacific Northwest and are interested in participating in future surveys or would like additional information, please contact the PFBI:
The Pacific Family Business Institute (PFBI) provides high-quality programs, resources and research designed to address the unique opportunities and challenges facing Pacific Northwest family businesses. PFBI works directly with family members, family business executives and professionals who advise family-owned companies. In addition, PFBI partners with universities, corporate sponsors and other Pacific Northwest organizations dedicated to the success of family business. For more information, visit .
Cascadia Capital is a diversified, boutique investment bank serving both private and public growth companies around the globe. Cascadia-s business is diversified in terms of the industries the firm covers — Information Technology, Sustainable Industries and Middle Market — and in terms of the range of advisory services it provides — Mergers and Acquisitions, Corporate Financing and Strategic Advising. This diversification provides the firm with stability amidst market fluctuations. Cascadia is a pure advisory firm and unlike other investment banks, is not conflicted by trading, lending, research or cross selling business. For over a decade, the firm has delivered the best outcomes for clients based on its transaction experience, domain expertise and commitment to building long-term relationships. Cascadia always acts in the long-term interests of clients, and honors its position as a trusted advisor. For more information, visit .
Founded in 1912 in Seattle, Perkins Coie has more than 850 lawyers in 19 offices across the United States and Asia. The firm is celebrating its 100th anniversary of representing great companies ranging in size from start-ups to FORTUNE 50 corporations. The firm-s legal services cover more than 25 practice areas, including corporate finance, mergers and acquisitions, emerging companies, securities, litigation, real estate and land use, intellectual property, bankruptcy, creditors- rights and restructuring, and environment, energy and resources. For more information, visit .
Rachel Pepple
Barokas Public Relations for Cascadia Capital