How prepared are business owners for exit and succession? pemcf.com
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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