| Only a tiny proportion of the hundreds of thousands of family-owned companies in Europe are listed on exchanges. But increasingly, second- and third-generation family members are seeking to raise capital and realize some of their assets. An initial public offering (IPO) is not a straightforward decision for management. A wider choice of exchanges, a greater emphasis on equity investment in continental Europe and generally buoyant capital markets have increased the profile of flotations as a way of raising capital. But such considerations as loss of total control, the greater disclosure required of a company when publicly quoted and the effects of share-price volatility on corporate fortunes can make managers think twice about an IPO. Although public listings are an increasingly attractive option, there is evidence to suggest that family-owned businesses are more hesitant than other private companies about undertaking them. A recent survey of the corporate finance requirements of Dutch companies undertaken for the Amsterdam Stock Exchange by market research company The Netherlands Institute of Public Opinion and Market Research (Nipo) found that although 32% of companies polled said it was "highly likely" they would go for a public listing within three years, family-owned companies were consistently less enthusiastic. |