Business succession is a crucial issue for the French economy. This complex process involves the transfer of ownership and management of a business from one owner to another. Statistics on this phenomenon reveal important trends and challenges. Let’s take a closer look at the key figures and recent developments in this field.
A statistical overview of business transfers in France
The business transfer market in France is characterized by sustained dynamism, despite certain fluctuations. According to the latest available data, an estimated 60,000 to 70,000 businesses change hands each year in France. This figure includes small, medium and large enterprises.
The breakdown by company size shows a predominance of smaller structures in business transfers:
- VSEs (fewer than 10 employees): 75% of transfers
- SMEs (10 to 249 employees): 23% of transfers
- ETI and large companies: 2% of transfers
It is vital to note that the average valuation of companies sold varies considerably according to their size. A summary table illustrates these differences:
| Company size | Average valuation |
|---|---|
| VSE | 180 000 € |
| SME | 2.5 million |
| ETI | 50 million |
These figures underline the economic importance of business transfers, which represent a major challenge for the long-term survival of the French entrepreneurial fabric. The Banque de France estimates that the total value of transactions linked to business transfers amounts to several tens of billions of euros per year.
Reasons and procedures for transfer of ownership
The reasons why managers decide to sell their businesses are many and varied. A survey conducted by BPCE L’Observatoire reveals the main reasons for transfer:
- Retirement: 60% of cases
- Change of professional activity: 15% of cases
- Attractive sale opportunity: 12
- Health problems: 8%.
- Other reasons: 5%.
The ageing population of business owners plays a major role in the dynamics of business transfers. Statistics show that nearly 25% of business owners in France are over the age of 55, which points to an increase in the number of transfers in the coming years.
When it comes to transfer methods, there is a wide variety of approaches. Data from the Confédération des PME (CPME) show the following breakdown:
- Sale to an outside party: 40%
- Family transfer: 30%
- Employee buyouts: 20%.
- Other forms of transfer: 10%.
It is crucial to note that family transfers, once predominant, are tending to decline in favor of transfers to outside buyers. This trend can be explained in particular by the professionalization of the transfer market and the emergence of new entrepreneur-takeover profiles.
Challenges and issues involved in company takeovers
Despite the economic and social importance of business transfers, the process is not without its difficulties. Statistics reveal a number of major challenges faced by both sellers and buyers:
1. Financing the takeover: According to a Bpifrance study, 70% of buyers consider access to financing to be the main obstacle to their project. Raising equity capital and obtaining bank loans remain crucial issues.
2. Matching supply and demand: The figures show a persistent imbalance between the number of businesses to be sold and the number of potential buyers. It is estimated that, on average, there are 7 sellers for every 1 buyer, which can lead to a drop in the value of businesses in certain sectors.
3. Preparing for the handover: Statistics from the Chamber of Commerce and Industry (CCI) show that only 15% of managers prepare for their succession more than two years in advance. This lack of foresight can compromise the success of the operation.
4. Post-transmission sustainability: INSEE data reveal that 20% of companies transferred cease trading within five years of the transaction. This figure underlines the importance of post-transfer support to ensure business continuity.
In response to these challenges, public authorities and economic players have set up a number of initiatives. The Transmettre & Reprendre network, run by Bpifrance, supported over 5,000 transfers in 2023, illustrating the growing importance attached to this issue.
Market outlook and trends
An analysis of recent trends reveals several prospects for the future of the business transfer market in France:
1. Increase in the number of transfers: Demographic projections point to a significant increase in the number of businesses to be transferred in the coming years. Observatoire BPCE estimates that nearly 700,000 businesses could change hands by 2030.
2. Digitization of the process: The emergence of online platforms dedicated to bringing sellers and buyers together is transforming the market. By 2023, over 30% of first contacts between buyers and sellers will have been established via digital channels.
3. Changing buyer profiles: We are seeing a diversification of buyer profiles, with an increase in the number of women buyers (from 15% to 25% in five years) and young entrepreneurs (under 35) interested in taking over a business.
4. Internationalization of transactions: Statistics show a growth in cross-border transfers, with 12% of French SMEs sold to foreign buyers in 2023, compared with 8% in 2018.
These developments are accompanied by a strengthening of the support ecosystem. Figures from Agence France Entrepreneur (AFE) indicate a 15% increase in the number of advisors specialized in business transfers between 2020 and 2023.
All in all, statistics on business transfers in France reveal a dynamic market in the throes of change. The economic and social stakes involved in successful business transfers are considerable. Anticipation, preparation and support are key factors in meeting the challenges of business transfers and ensuring the long-term future of the French business fabric.
