Private Equity Minority Investments - Universität St.Gallen

Chapter II: Theoretical Foundations2.2 Economic Significance of Family Firms in SwitzerlandApproximately 88% of Swiss companies 101 are estimated to be family firms(see Figure 8). 102 A 2003 cross-country comparison by CAPPUYUN et al.shows that family firms play a particularly significant role in the Swisseconomy compared to, for example, in Germany or Spain where familyfirms account for 68% and 71% respectively, of all companies. 103Non-FamilyFamily-DominatedLarge Company 0.06% 0.14%SME 11.54% 88.26%Figure 8: Economic significance of family firms in Switzerland (Source:PWC, Nachfolger gesucht, p. 9; with reference to FREY/HALTER/ZELLWEGER, p. 6)The large majority of family firms in Switzerland are small and mediumsizedenterprises considered those with 250 employees or less. 104 Yet, evenamong large firms, the share of family firms is above 50%. 105FUEGLISTALER and ZELLWEGER estimate that family firms account forapprox. 60% of Switzerland’s GDP and employ a similar percentage of theSwiss work force. 106 In 76% of Swiss family firms surveyed byFUEGLISTALER and HALTER in 2004, the owner family owns 100% of theequity, and in another 22% the family owns at least 51% of the equity (seeFigure 9). 107 Almost 80% of the family firms surveyed have a maximum ofthree shareholders. 108 In 63% of the family firms surveyed the family holds100% of the top management positions, but in 2/3 of the family firmscovered, third parties (non-family members) sit on the board of directorsalongside family members. 109101At the end of 2010, there are 536'458 firms (Zentraler Firmenindex, 2010).102FUEGLISTALER/HALTER, p. 36. Cf. NEUBAUER/LANK, p. 10 (estimating that 85% of thecompanies registered in Switzerland are family firms).103Unpublished study titled “The Prevalence of Family Business around the World” byCAPPUYN/ASTRACHAN/KLEIN in 2003, cited by FUEGLISTALER/HALTER, p. 36, FN 6.104See FUEGLISTALER/HALTER, p. 36.105FUEGLISTALER/ZELLWEGER, p. 30. Data from 2005.106Ibid; ZELLWEGER, p. 16.107FUEGLISTALER/HALTER, p. 36.108FREY/HALTER/ZELLWEGER, p. 9.109FUEGLISTALER/HALTER, p. 36.25