Perspectives of Private Equity and Owner Managers Survey
Owner Managed Businesses form an integral part of South Africa’s economic landscape. The country’s history is closely linked to many of these businesses, which, forged from an entrepreneurial spirit, have gone on to grow into global conglomerates, competing with the best in their sectors from around the world.
There is also a plethora of mid-tier Owner Managed Businesses which remain an important part of the growth engine of our economy. Some of these businesses have remained in the same family for generation after generation. Others are relatively young and have only grown exponentially in recent years.
Over the past few decades South Africa’s thriving Private Equity sector has enabled many Owner Managed Businesses to unlock the value in their businesses through well structured, win-win transactions. In this survey of the Experiences and Perspectives of the Partnership between Private Equity Investors and Owner Managed Businesses, FTI Consulting explores some of the key dynamics and insights from the perspective of both sides of the deal.
Our findings show that today’s business and regulatory landscape presents a number of challenges for South African Owner Managed Businesses. Owner Managers recognise that Private Equity Investors can help them access much-needed capital for future growth, assist with succession planning, accelerate growth through providing improved access to new markets and clients as well as meet regulatory requirements, for example compliance with the Broad-Based Black Economic Empowerment codes.