33% of small business owners in the UK are over the age of 60. It’s easy to come unstuck when taking steps towards retirement – without proper ahead planning, SME owners can risk putting themselves at a disadvantage.
Based on analysis of 403,000 UK directors, Moore Stephens (an accountancy and consultancy firm) found that 65% are over the age of 50.
The firm warns that directors should ensure that a succession plan is made far in advance of retirement, as the time required to get everything in place is often underestimated.
For example, it may take a number of years before a company is ready for sale, when most SME directors assume that this can be achieved in a few months.
This is because restructuring may be required to make the business as attractive as possible to potential buyers. This process takes time to plan, implement and get used to.
Entrepreneurs are also required to review their tax arrangements with professional advisors to ensure that their exit is structured in a tax-efficient manner. This benefits both directors and the parties taking over the company or its assets.
“Company owners frequently either don’t feel ready to address this issue until it is almost upon them or they are too busy with day-to-day operations to worry about it. If they take a forward-thinking approach, they can control the process to make sure that when they step down, they do so on the most advantageous terms for them”
Steve Wheeler, a Private Client Services partner in the Moore Stephens team.
Need some free advice about selling your business?
Knowing what to do when you’re thinking of selling your business is confusing, that’s why we offer free, no-obligation advice to explore your options.
Call us today for free, confidential advice on 0800 975 0380 or arrange a free meeting with one of our advisers →
Related Articles
We're here for you.
As a dedicated team of Advisers and Consultants our aim is to help you fix the issues and solve the problems within your business.
Find out more →
