How prepared are business owners for exit and succession?

pemcf.com

We asked more than 1,000 business owners in the East of England about their plans for exit or succession.

12 questions asked

12 interesting responses

“How many years has your business been running?”

53%More than 20 Years

16%11-20 Years

21%6-10 Years

11%0-5 Years

71% of business owners intend to exit their business in the next 5 years.

“What are the main reasons you will exit?”

28%

24%

16%

10%

8%

8%

3% 2%2%To realise wealth

Ill health

Age

Do something else

Business cycle

Management buyout

Fed up

Had an approach No idea

61% of owners intend to pursue a trade sale.

22%

Management

8%

Next Generation

61%

Trade Sale

8%

Private Equity

78% felt they understood quite well what factors will drive the value of their business in a sale or succession transaction.

Quite well78%

A little22%

95% said they do not have a documented grooming plan in place.

“Do you have a written exit strategy?”

“Do all shareholders have the same view on exit planning?”

55%YES55%Y

43% of business did not have a second tier management team in place.

70% of business owners do not have their accounts prepared for sale.

89% of business said all their legal affairs were up to date e.g. all contracts formalised, IP appropriately protected and no current legal disputes.

“Do you understand the full impact of your chosen form of exit?”

Half do not.

pemcf.com

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