Succession and Exit planning message not really sinking in !
According to the recently released Smart Company WHK SME directions survey the message simply isn’t getting thru to business owners – only 35.3 % have a business exit strategy !
For at least the last 10 years advisers have been warning of the impending wave of baby boomers looking to exit and hand over their businesses – but it seems business owners have largely ignored this advice. A combination of the GFC causing business owners to hold off selling ( as the market was so bad ) or chosing to remain at the helm during bad times and the reduction in asset values means many business owners are not going to recieve the nest egg they had been expecting.
This means the great wave of exits has probably simply been delayed by a year or two.
Interestingly, a surprising number of respondents who did have an exit plan said they were simply likely to wind the business down when it came time to exit – Hardly a good strategy to maximise value !