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Vast majority of UK SMEs have no succession plan

A recent survey has uncovered the fact that most UK SME owners have not yet planned what to do with their business when they stop working.

The SME Future Attitudes study, which revealed this issue, was put together by Aldermore Bank PLC. They found that 64% of SME senior executives had not planned how their company would operate without them or other key members of staff.

In a press release, the Group Managing Director for Business and Finance, Carl D’Ammassa, highlighted the fact that more firms were failing to plan for the departure of their senior executives. He said:

“For UK SME leaders who have planned their own departure, our research tells us that on average, they aim to leave their company in just under four years’ time. What is troubling is that there are fewer senior executives with formal business succession plan compared to a year ago.”

However, interestingly, over 56% of the small business owners who were aged between 18 and 34 did, in fact, have a detailed succession plan. Of those who had planned their exit, 29% wanted to liquidate their company. Others planned to hand control of the business over, mostly to senior colleagues (25%) and family members (23%).

Most accountants in Heswall and other Merseyside areas have the knowledge to be able to help their clients to put together a proper exit plan. They are able to identify viable ways to release significant sums of cash from the business when it is time for the senior executive to retire. In many cases, selling the business can create a significant retirement nest egg for the original owner while securing jobs for most of the firm’s employees.

Posted by Peter
September 5, 2018
Small Business

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