Tuesday, June 21, 2022
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Canada’s family-owned business outperform says NBC report

Using the NBC Canadian Family Index, calculated by S&P Dow Jones Indices, the analysis found that between June 2005 and June 2021 the family/founder controlled Canadian public firms it tracked registered a cumulative return of 325.1%.

Meanwhile, the S&P TSX Composite Index returned 221.9% over the same period.

In annualized terms, that means a 9.4% return for the family/founder firms compared to 7.6% for the wider-held companies.

Better in tough times

Additionally, the Canadian Family Index outperformed the S&P TSX Composite even during the financial crisis in 2008 and the COVID-related market disruptions of 2020-2021.

“The biggest advantage of being a family-controlled company is the business culture instilled by its founders,” said Karinne Bouchard, Corporate Director, Alimentation Couche-Tard. “I remember when I was Global Treasurer, every penny was important. It is our money; it is our hard work that we have done all our lives. The four founders are still the largest shareholders and Couche-Tard is the result of their culture of hard work. This is the foundation of our long-term success.”



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