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Why Do Family Businesses Tend to Borrow Less Money? - Mercer ...

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Why Do Family Businesses Tend to Borrow Less Money? - Mercer ...

As recounted in the Harvard Business Review article entitled “What You Can Learn from Family Business,” an academic study of family-controlled and non-family public companies found that debt constituted 37% of the capital of family-run businesses, compared 47% for the non-family companies.  This finding is generally consistent with our experience working with family businesses of all sizes.  In this post, we consider why family-run businesses ...

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