Mr. Andreas Christofides, the Managing Director of KPMG Ltd, while addressing the conference, highlighted the importance for the Cyprus economy and the local family businesses to proceed with necessary reforms. In addition, he pointed out the need for restructuring the loans of viable family businesses, in order to continue operating and to return to a healthy upward track. The family businesses, he added, should reconsider their business model and their organizational structure.
The Minister of Finance, who kindly attended, made a presentation about the latest developments in the Cypriot economy and its prospects in the near future and has stated that the most important goals of the economy, the exit from the recession and the return to positive growth rates, have been achieved.
Mr. Christophe Bernard, partner at KPMG and Global Head for Family Business, presented the points that make family businesses successful, but also the challenges that they face, such as management, survival, succession, retaining of talent and access to financial resources and funding. He also presented the results of the latest KPMG barometer for family businesses that is conducted in collaboration with EFB.
The challenges that a family business faces with regards to succession in management, ownership and businesses operations were described by Mr. Demetris Vakis, Board Member of KPMG in Cyprus.
Dr. Panicos Poutziouris, Professor of Entrepreneurship and Family Businesses at UCLAN University analysed aspects and significant issues relating to the important component of Governance in a Family Business.
Mr. Christophoros Anayiotos, Board Member at KPMG Ltd, Head of Transactions and Restructuring, elaborated on creating and preserving family business wealth, value growth and how this value can be distributed through legal means such as by dividing or by reorganizing a business. He also presented ideas relating to loan restructuring, a critical issue today.
The basic provisions of the legislations that have been recently enacted and which collectively deal with the insolvency framework were explained by Mr. Michalis Loizides, Board Member at KPMG Limited, Head of Corporate Recovery and Reorganizations. The framework contains provisions for the protection of a company from its creditors and it is an important tool in times when a company is facing temporary financial difficulties. In addition, he presented the provisions regarding similar situations for natural persons (for example, sole proprietorships).
An interesting panel discussion with five successful family business executives followed. They explained the challenges that their businesses face and how they have handled those issues with success in the past and in the present.
During the Conference many important issues were discussed and the participants had the opportunity, during the conference, as well as at the reception that followed to discuss between themselves as well as with the speakers about their matters of concern.