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A surprising amount of people who have their own business enterprises are planning to sell up at some point in the near future.

But the good news is almost two thirds of entrepreneurs overlooked their financial planning until the last minute, despite 79% agreeing that it is an important part of the process – whatever you plan to do with your investment, make sure you are always on top of your finances with the help of a financial professional. Until you close your accounts for the last time, you need to know you are making as much as you can.

New research from Coutts reveals that although 46% of entrepreneurs believe that selling their business will take less than one year, the reality is that it actually takes up to two. Also, 71% of business owners consider themselves ‘exit obsessives’, who think about selling their business on at least a monthly basis. It's a tough environment right now to make money, but if you are finding it difficult talk to an adviser about your options – you may find that there are some products out there that will make your business run more smoothly.

Half of respondents to the survey said that their best advice for someone planning to sell is to get the right advisers on board.

Andrew Haigh, managing partner at Coutts says: “This report has shown that alarmingly, two-thirds of entrepreneurs are risking long-term business success by not giving proper thought to their exit strategies.

“Entrepreneurs make up more than a third of our client base and this represents a huge source of expertise and experience, which in turn we can pass back and share among our clients. But this experience has also shown that the exit, which is often the one opportunity to realise significant personal wealth is the final challenge, as entrepreneurs extract themselves and the financial value they have built up in the enterprise.”


If you are planning to stop running your own business, talk to your financial adviser about the repercussions. It might mean seeking out new finances, moving home, seeking alternative employment or investing a windfall – whatever it may entail, get some advice and plan your exit carefully.

SOURCE: Coutts, 16/07/09

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