The FINANCIAL — Euronext, the primary exchange in the Eurozone, on January 24 announced that it will roll out a series of initiatives dedicated to family businesses to promote listings and increase the visibility of family businesses towards investors.
Growing the market’s family business franchise: a strategic priority for Euronext
Euronext is attentive to family businesses, their potential financing needs, and their specific requirements, and is significantly improving its support for these companies.
There are currently over 14 million European family businesses, amounting to 60% of the total number of companies in Europe. Furthermore, family businesses account for 66% of companies worldwide, generating over 70% of global GDP annually and 50% of European GDP. Today, 201 family businesses are listed on Euronext markets, representing a total market capitalisation of €745 billion. This includes 158 SMEs with a total market capitalisation of €43 billion.
Following interviews with key sector players in the past six months, Euronext will launch new initiatives for family businesses over the course of 2017. The aim is to encourage them to view financial markets as a source of financing, a governance and transmission tool, and a means of raising their profile with investors, according to Euronext.
Targeted measures to boost family-business
Family-owned SME stocks will benefit from increased assistance in several areas. This includes European roadshows to meet investors, improved financial analysis coverage through the Morningstar programme, and a dedicated section on Euronext’s website.
On 21 February 2017, Euronext will also launch the Euronext Family Business index®, a new European index with 90 component companies—from major corporations to SMEs—in the four countries covered by Euronext.
Finally, FamilyShare, a dedicated programme offering support and coaching to unlisted family businesses, will be set up across Euronext markets and tailored to the specific needs of each country. This unique pan-European initiative is designed to familiarise family-owned businesses with capital markets, both equity and bonds, giving them the information they need to bring their companies to the market.
Anthony Attia, Global Head of Listing and CEO of Euronext Paris, said, “Family businesses make an essential contribution to European economies and employment. Through their varied profiles, risk management and scope for added value, listed family businesses are very attractive to most investors. Yet cultural hurdles can slow decisions when opening up a company’s capital. At Euronext, our new initiatives and efforts to raise the profile of family business stocks are designed to show how the exchange can help these companies grow and prosper—above and beyond financing.”