Valencia, 13 February 2025. The Chair of Family Business of the University of Valencia (CEFUV), promoted by the Valencian Association of Entrepreneurs (AVE), the School of Entrepreneurs (EDEM), the Valencian Institute for the Study of Family Business (IVEFA), the Institute of Family Business (IEF) and the University of Valencia (UV), with the collaboration of CaixaBank and Broseta, has organised a conference on the importance of financial soundness for the resilience of Family Businesses.

The conference was opened by the director of the CEFUV, Alejandro Escribá, who gave a brief introduction to the Chair of Family Businesses and expressed his thanks to the speakers, sponsors and collaborators, especially CaixaBank, which today has lent us its facilities for holding the conference.

Next, Vicente Castellano, CaixaBank's Director of Risks in the Community of Valencia and the Region of Murcia, gave a talk entitled ‘Keys to financial soundness in family businesses’.

During his speech Castellano stressed that ‘the financial strength of a company is an indicator of its ability to meet its obligations in both the short and long term’, highlighting the importance of proper financial management to ensure the sustainability of the company. He also pointed out that ‘diversification of funding sources can contribute to long-term financial soundness’.

The speaker also emphasised that ‘a solid balance sheet is fundamental to ensure the operational continuity and sustainable growth of the company’. Finally, Mr. Castellano emphasised that ‘financial strength generates shareholder value, stability, reputation and attractiveness for future investors’.

This was followed by a round table discussion, moderated by Arturo Peña (Director of CaixaBank Business Centres in the Valencian Community and the Region of Murcia) and attended by Andrea Falco Tortosa (CFO Ballester) and Juan Carlos Luján (Corporate Finance Director of Válvulas Arco). The round table discussed the aspects that strengthen the strength and resilience of family businesses, as well as the key role of CFOs in maintaining an adequate balance in any market circumstance.

During the debate, Andrea Falco defined resilience as ‘the ability to resist adverse moments, crises or any negative event or event that implies a change and not only survive, but to emerge stronger, even seeking opportunities’. He stressed that ‘the financial soundness of the company is one of the fundamental principles because it is closely linked to the image and reputation of a firm’ and highlighted the importance of assigning a cost to equity, just as they would with any other type of financing source. Furthermore, he emphasised that ‘in family businesses it is often difficult to find the time to carry out an in-depth analysis of the situation with financial ratios or to make a long-term plan’. In this sense, he recommended that one should not be afraid to contract treasury automation programmes and try to encapsulate family and business assets, trying to avoid cross-financing.

For his part, Juan Carlos Luján agreed that resilience is a process of balance between flexibility, creativity and perseverance, which has allowed us not only to resist, but also to learn and grow stronger with each crisis. He stated that ‘each challenge has made us stronger and has taught us to be better prepared for the future’. He also highlighted three keys to recovery in times of crisis: ‘solid internal communication, constant innovation and a strong and committed corporate culture’.

Luján stated that ‘resilience in business is not just passive resistance to crises; it is a strategic combination of preparation, flexibility and innovation that allows the company not only to survive, but to thrive in uncertain environments’. Finally, he concluded that ‘financial soundness not only acts as a shield against uncertainties, but is also an engine for sustainable growth. Good practices such as financial prudence, robust governance and strategic planning have ensured that the company has been able to thrive even in challenging environments’.

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