Comprehensive Online Business Insurance
Tailored PI, Office, Public & Employers' Liability Insurance
Are you covered? Read our Essential PI Guide
Get a Quote and buy online in minutes

25% of SME owners plan to sell, but for how much?

print  e-mail 

One quarter of the nation’s small to medium-sized business entrepreneurs plan to throw in the towel and sell-up in the next three years. But almost half these people have no real idea what their business is worth, according to research by the Tenon Forum, an independent think tank of entrepreneurs.

Of the 92,000 businesses expected to go up for sale, a surprising 47 per cent (43,000) have owners with no clear picture of what their business is worth. The same spectrum of businesses with between five and 499 employees was asked whether they had an exit strategy in place. Only 52 per cent of these businesses had one.

"A surprising 47 per cent (43,000) have owners with no clear picture of what their business is worth."

The bi-annual research, conducted by GfK NOP on behalf of leading accountants and business advisors Tenon, questioned managing directors, financial directors and senior directors of 500 small and medium-sized businesses.

SMEs from a broad spectrum of sectors, including manufacturing, retail, agricultural and construction were asked about their future plans. The findings were particularly stark among smaller companies with a workforce of five to nine employees, of whom 32 per cent hope to sell but only 37 per cent have any idea of what their business is worth.

Equally, businesses in the retail, leisure and utilities industries seem to be in the mood to sell. A significant 32 per cent of these businesses plan to sell up in the next three years. Of these, only 42 per cent have an exit strategy in place and only half have an accurate notion of their company’s financial worth.

The picture was more positive among larger companies with between 200 and 499 employees. There only 12 per cent expected to sell and of those, eight in 10 said they had a good idea of their financial worth.

Posted December 2, 2005

Latest articles in Latest News
 
Startups 100 list reveals the UK's most exciting new companies
The 'Startups 100' list was announced last week, identifying the country's most innovative, inspiring and ground-breaking new businesses. [September 1, 2010]
 
Small companies reap benefits of social networking
A worldwide study of 15,000 businesses shows that small companies have been much more successful at harnessing the power of social networking sites than their larger rivals. [August 5, 2010]
 
Company directors warned over taking illegal dividends
A growing number of company directors are declaring illegal dividends or loans, according to a leading accountancy firm. [August 4, 2010]
 
One in three graduates plan to work for themselves
New research suggests that the lack of traditional opportunities available to university leavers has led to a significant proportion of graduates planning to go it alone. [July 29, 2010]
 
Business angels use gut instinct when choosing investments
New research has shown that Angels Investors (high net worth individuals who invest money and knowledge into companies who require funding) mainly follow their intuition ahead of financial calculations when deciding whether to invest in a company. [July 26, 2010]
 
Small business confidence "still fragile"
A recent survey suggests that business confidence has declined over the second quarter of 2010, suggesting that the recovery remains fragile and more efforts should be made to encourage private sector growth. [July 23, 2010]
 
Limited company formations rise following two year slump
The number of new companies has started to rise again following two years of steep falls caused by the banking crisis, according to a Top 25 accountancy firm. [July 13, 2010]
 
Number of business insolvencies down over 10%
The latest PwC analysis into corporate insolvency numbers shows that the effect of the downturn on UK business is showing more signs of easing. 3,467 companies became insolvent in the second quarter of 2010. [July 7, 2010]
 
Vince Cable heads up new committee to slash red tape for small businesses
Vince Cable has chaired the first meeting of a new tough Cabinet committee, tasked with the job of slashing the amount of red tape small businesses have to deal with. [July 5, 2010]
 
Small businesses warned to expect public sector contract cuts
Companies who have contracts with the public sector are being urged by the ICAEW to prepare for possible cuts. Includes a contract review checklist for small companies who may be affected. [June 7, 2010]
 
Most entrepreneurs expect to increase number of employees in 2010
New research has revealed the important role Britain’s leading entrepreneurs will play in helping to offset the inevitable job losses which will take place in the public sector over the next few years. [May 21, 2010]
 
Coalition unveils plans to cut red tape and encourage small businesses
The new coalition government has unveiled a more comprehensive summary of its "programme for government", which contains many plans which could benefit the UK's small businesses. [May 20, 2010]
 
Cutting the UK's budget deficit the key priority for small business owners
Two major surveys show that small businesses are overwhelmingly in favour of making tackling the UK's budget deficit the key priority for the new government. [May 19, 2010]
 
Entrepreneurs 'pessimistic' about the outlook for businesses in 2010
The UK’s entrepreneurs are pessimistic about the business outlook for 2010, and scathing of the Government’s efforts to drive small business growth, according to a new study. [May 7, 2010]
 
Most small companies think UK tax system is too complex
The vast majority of the UK's small companies feel that the current tax system it too complex, and would like to see it simplified, according to a major survey of over 2,000 business owners. [May 4, 2010]
 


Click Here




Our Partners
Key Services
Key Services
Useful Guides
Archived News
Click Here