Our research on the lack of succession planning by SMEs has been covered by today's Daily Telegraph
From researching our database, Experian Corpfin, we found that over 80,000 businesses with turnover less than £10m and owners aged over 60 stopped trading in the last year, but it wasn't as a result of insolvency.
Whilst there could be many reasons why this happens, our Chairman, Kirsty McGregor believes most have sold without trying to sell their business: "From both personal experience and anecdotal evidence, I know that a huge proportion of business owners simply wind up their business when they retire.
For a myriad of reasons they don't actually sell it on to a new owner as a going concern. But I believe that at least 80% won't even try to sell and have therefore missed out on receiving a capital sum. When an entrepreneur invests many years of his life in building his (or her) business, they should really look to capitalise on that goodwill and success when they retire.
We are working tirelessly with SMEs trying to convince them to spend some time on structured exit planning, so that when the time comes to leave the business, they have a good chance of selling it."
Coverage in the Daily Telegraph on 18th October 2011:
For more information about our Exit Planning processes, please contact your local firm http://www.thecfn.org.uk/about-us.php