19 Sep

FMI Releases 2024 Study on Ownership Transfer and Management Succession

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Research Shows 58% of Respondents Do Not Have an Ownership Transition Plan

FMI Corporation, a leading provider of consulting and investment banking services to the built environment, released the 2024 Ownership Transfer and Management Succession Study focused on the engineering and construction industry. The report provides key insights and tactics to help owners and executives navigate their companies’ transitions.

In early 2024, FMI partnered with the Construction Financial Management Association (CFMA) to survey construction executives on their ownership transfer and management succession (OTMS) plans. The findings are based on responses from nearly 300 industry leaders.

Notably, the study shows that half of the 38% of owners who plan to exit in three to five years do not have an ownership transition plan in place. The research also revealed a change in internal tactics since the 2020 survey:

  • 29% don’t have a buy-sell agreement in place, up slightly from 27%
  • 25% of respondents intend to sell to employees, down from 38%
  • 20% plan to have family buy shares, up from 15%
  • 8% aim to gift shares to family members, down from 14%

“The research highlights that many business owners remain ill-prepared for the future of their companies,” said Matt Godwin, managing director, FMI financial advisory services. “Too often, owners rely on a buyer coming to the table or key employees coming up with a buyout plan; however, passively waiting isn’t a strategy. Taking a proactive approach is essential to mitigating potential transition risks, ensuring continuity and safeguarding the legacy you’ve built.”

Download the full report for the latest insights.

About FMI
FMI is a leading provider of consulting and investment banking services to the built environment. FMI provides services in the areas of strategy, leadership and organizational development, operational performance, mergers and acquisitions, ESOP advisory, ownership transition advisory and private equity financing.