Wed, 08 May 2019 | BUSINESS NEWS
A survey of more than 3,000 UK-based business founders and co-founders revealed than 43 per cent were forced to buy their partners out of the business as a result of power struggles and internal conflicts.
Conducted by London-based venture capitalists Fuel Ventures, the research found the inability to agree on the direction of a company was the most prominent reason for co-founders splitting. Of those who had bought out their co-founders, nearly three quarters (71 per cent) claimed “a difference of opinions for the company’s direction” was the primary reason for breaking up, whilst 18 per cent believed their partner “didn’t reciprocate their beliefs/values”.
The majority of all those polled (92 per cent) revealed that the split came about as a result of a “single specific disagreement” pertaining to a business decision, which followed a prolonged period of disagreements and turbulence amongst the founders.
As part of the survey, when asked if they would consider getting into another business partnership, 73 per cent of all respondents said they would not; but of those who would, 81 per cent said they would “only do so with someone they knew well.”
However, the research found some positives to having a partner. Over half said they felt “more confident and comfortable with a co-founder” whilst roughly a third claimed they “felt obliged” to enter into a partnership, having come up with the business idea together.
Mark Pearson, founder of Fuel Ventures, said: “For entrepreneurs all over the globe, having a co-founder offers a great source of confidence, as well as giving people a great chance to bounce ideas and concepts around, and if the relationship is good, a co-founded company can be extremely successful. However, as our research shows, there can be some negatives to having a co-founder, particularly if you don’t share the same business beliefs, value or ethics.”
Seeking an acquirer / strategic partner for this long-established national engineering contractor providing an extensive range of solutions, including specialised fabrication, pipework installation, steelwork and mechanical equipment.
Our client, with a legacy spanning over 35 years, has crafted an exceptional brand and market-leading business in the world of organic wines. Now, due to retirement plans, they are seeking the perfect successor to carry forward their legacy.
Over the past 15+ years, our client has built a successful business providing a range of commercial cleaning and soft services to its contracted and growing client base. Working predominantly within the commercial and industrial sector, our client ma...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.