112 PRINCIPLES OF PRIVATE FIRM VALUATION
TABLE 7.3 Target Characteristics
Panel A:Panel A provides details on levels of family ownership for 191 target
firms for which ownership data were obtainable. Targets are both public and
private firms.
Ownership Distribution Number of Firms % of Firms
20–29% 34 17.8
30–39% 23 12.04
40–49% 17 8.9
50–59% 37 19.37
60–69% 14 7.33
70–79% 12 6.28
80–89% 8 4.19
90–99% 5 2.62
100% 41 21.47
Total 191 100%Panel B:Panel B provides details on motives for the sale of the family business for
123 firms where such information is obtainable. Targets are both public and
private firms.
Motives for Selling Business Number of Firms % of Firms
Family disputes 12 9.76
Succession issues 21 17.07
Access to capital 4 3.25
Distress 17 13.82
Growth objectives beyond the scope of
the family 33 26.83
Desire of shareholders to diversify stake 16 13.01
Estate taxes 4 3.25
Good deal financially 12 9.76
Career enhancement 4 3.25
Total 123 100%
Panel C:Panel C provides details on CEO’s relationship to the founder for 149
firms for which such information is obtainable. Targets are both public and private
firms.
Relationship to Founder Number of Firms % of Firms
Founder 61 40.94
Child 45 30.2
Grandchild 28 18.79
Subsequent 15 10.07
Total 149 100%
(continued)