Now more than ever, how New Zealand family businesses grow, matters.
In a world of accelerating change, rising environmental and social expectations, the choices that New Zealand family businesses make today will shape not only their commercial success, but also their legacy, for generations to come.
The 2025 KPMG Family Business Report offers a compelling blueprint for how New Zealand’s family enterprises can grow with purpose, resilience and impact.
We explore the key themes that emerged in the report as follows:
Governance: The backbone of sustainable growth
Good governance is essential to achieving long term sustainable growth. Research conducted by the STEP Project Global Consortium shows that in New Zealand, 69% of top-performing family businesses have formal boards, which is higher than the global average.
Although there is a preference for formal boards, depending on stage in the cycle and size of the family business, a formal board may not be feasible. In this case, we suggest setting up a more informal governance structure by way of an Advisory Board. This will likely start small and grow or evolve into a more formal board as required.
The key for selecting members of a formal or informal board is that the skillset best suits the current requirements of the family business. This will change over time, and it is important to regularly review the members of the board to ensure they are the right people for the job at the right time.
Boards that include diverse voices, across gender, age, and experience, are more likely to drive sustainability and innovation. In particular, multi-generational boards foster entrepreneurial thinking and long-term stewardship.
A high functioning board will hold management, which in most cases are family members in the business, to account and ensure that the business is working towards achieving the agreed strategic objectives.
External advisors can play a valuable role in shaping governance structures that evolve with the business. Thoughtful input from your trusted advisors can help ensure governance remains fit-for-purpose as the business grows.
The communication challenge
Despite their close-knit nature, 38% of New Zealand family businesses report dissatisfaction with the quality of communication within the family. Strong relationships, trust and conflict resolution are foundational to long-term success. As businesses transition across generations, fostering collaboration and clarity becomes even more critical.
Transgenerational entrepreneurship (where innovation and leadership are encouraged across age groups) is a key driver of sustainability. Families that work well together outperform their peers, so ensuring role clarity and shared purpose is good practice
To gain a strategic advantage, investing in independent perspectives in governance roles can help facilitate more structured and effective communication, especially during times of transition or strategic planning.
From family businesses to business families
One of the most striking shifts highlighted in the report is the evolution from “family businesses” to “business families.” This subtle but powerful shift reflects a broader investment mindset, where families are diversifying beyond their core enterprises and embracing new avenues for growth. Whether through mergers and acquisitions (M&A), strategic partnerships, or external funding, New Zealand’s high performing business families are increasingly looking outward to scale their impact.
The report reveals that globally, 46% of private companies are indicating a high appetite for M&A activity over the next three years, with 60% of the M&A targets being other family businesses. While less common in New Zealand, interest is growing, with the key reasons for family businesses to pursue acquisition being:
- Unlocking potential;
- Improving efficiency; and
- Introducing succession support to help ease leadership transitions.
The key to successful acquisition is ensuring that the target businesses align with the values and long-term goals of the family.
ESG: A strategic priority, not a side initiative
Environmental, Social, and Governance (ESG) principles are increasingly central to how family businesses operate. In New Zealand, ESG momentum is driven by younger generations, regulatory shifts (such as climate-related disclosures) and the need to attract talent in competitive labour markets.
The report reveals that family firms who embed ESG into their strategies enjoy stronger brand loyalty, better stakeholder relations, and long-term profitability. These values are not just ethical, they’re economically beneficial. Embedding ESG into business strategy often benefits from a structured approach, helping families translate values into measurable outcomes.
Growth that builds legacy
Ultimately, how a family business grows matters. Growth should build identity and strengthen legacy. Done well, it creates enduring prosperity. Done poorly, it risks eroding value and reputation.
As current business owners pass the baton, the next generation inherits more than leadership, they inherit the opportunity to redefine success. That means embracing innovation, embedding ESG, and leading with purpose.
The next 5 to 10 years will distinguish those who merely survive from those who thrive. New Zealand’s family businesses are uniquely positioned to lead this transformation. With strong values, deep community ties, and a long-term mindset, they can grow not just bigger, but better.
As family businesses look to grow with purpose, having a trusted partner can play a valuable role in supporting strategic transitions – whether through shaping governance structures, enhancing communication, embedding ESG, or exploring new growth pathways. KPMG’s strategic advisors walk alongside New Zealand family businesses – helping them stay true to their values while planning for a future that’s both resilient and rewarding.
If you're thinking about your next steps, we’d love to connect and explore how we can support your goals – together.
Read our latest Global family business report
Dana Hussey
Director – Family Business,
Private Enterprise
KPMG New Zealand
Hamilton
+64 27 323 6958
dhussey@kpmg.co.nz
KPMG is a professional services firm with global reach, and deep expertise in audit and assurance, tax and advisory and in the family business sector.
