Deloitte Private Survey: Divestitures May Be on the Horizon as Private Companies Seek to Ensure Continuity and Fuel Growth

NEW YORK, Dec. 16, 2025 /PRNewswire/ -- A Deloitte Private survey of private company leaders revealed that nearly 6 in 10 (57%) respondents from organizations planning a future transfer or sale anticipate their company will engage in a transaction in the next one to three years. Business continuity (40%) is cited as the dominant driver for pursuing a sale or transfer, outpacing liquidity for the business (22%) or for business owners (13%). Those seeking to sell all or part of the organization are motivated by scaling for growth via partnerships (45%) or financial sponsors who can support future expansion (37%).

The study, "Private Company Outlook: Market Readiness," surveyed 100 private company leaders from organizations planning a future transfer or sale to understand their perspectives around planning, timing, readiness and objectives related to a transaction.

Key findings:

• Transaction timing hinges on external conditions and internal readiness: 50% of respondents said market conditions will drive transaction timing, while 43% highlighted organizational readiness. Although 63% have recently obtained a valuation, just half of those planning a sale in the next one to five years indicate that their organization is prepared for due diligence — including engaging third-party advisors.
• Tax implications are key considerations in going to market: Nearly 9 in 10 leaders consider recognized gains (88%) and transfer taxes (87%) as high or very high concerns while two-thirds (66%) cited historical tax issues as concerns. Leveraging existing losses (43%) and qualified opportunity zones (36%) were the most referenced tax planning considerations in the event of a sale. 
• Compensation structure expectations depend on company size: More than 4 in 10 (43%) respondents expect a cash plus earnout arrangement for sale proceeds. Leaders from companies with annual revenues of $500 million or more are over three times as likely as those from smaller organizations to expect proceeds to include both a sale and a rollover.
• Plans for post-sale engagement and managing sales proceeds vary widely: Half (50%) of respondents said their organization's founder or owner intends to join the board post-transfer or sale. Those from companies with under $500 million in revenue were nearly three times more likely to expect the founder's full exit (35%, vs. 13% at larger companies). For managing the after-tax proceeds, 48% already have trusts with ownership interests for estate planning, and 37% plan to roll equity into a new entity, if permitted.

"As these private company leaders increasingly look to transactions as a pathway to business continuity and growth, they are approaching each decision with careful consideration — closely evaluating market conditions, organizational readiness, and tax implications," said Wolfe Tone, U.S. Deloitte Private leader. "Whether pursuing a full or partial sale in the years ahead, their priorities seem clear: managing transitions to safeguard stability, fuel expansion, and create lasting value for owners and other stakeholders alike."

About the survey

Deloitte Private's pulse survey, "Private Company Outlook," gauges private company leaders' perspectives on opportunities and risks to business now and in the future. The survey of 100 private company leaders was conducted online by an independent research company between Oct. 23 and 29, 2025. Respondents included CEOs, CFOs, presidents, board members, and partners/owners of private companies in the U.S. with annual revenues of US$100 million to US$1 billion+ that anticipate a future transfer or sale. 

Deloitte Private serves the unique needs of private companies and their stakeholders by leveraging the full depth of Deloitte's technical experience and industry capabilities to serve private enterprises, family-owned businesses, private equity portfolio companies and emerging growth companies. Visit us at https://www2.deloitte.com/us/private or follow us on LinkedIn.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500^® and more than 9,000 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters for our people, clients, and communities. We bring together distinct talents, technologies, disciplines, and an ecosystem of alliances to help tackle today's most complex business challenges and drive long-term progress. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 180 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 470,000 people worldwide connect for impact at www.deloitte.com.

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SOURCE Deloitte