The report also found that:

• 71 per cent of business owners consider themselves ‘exit obsessives’, who think about selling their business on at least a monthly basis;
• While one in four decided to retire early following exit, 40 per cent still needed the thrill of running a business and went on to start again. 51 per cent also still have some direct involvement in the business they have sold; 
• 89 per cent of entrepreneurs supported the creation of a specific exit plan;
• Before the exit, entrepreneurs rank their priorities as: price (28 per cent), readiness of the business (17 per cent), cash exit (11 per cent), market conditions (7 per cent), long-term security of the business (4 per cent) and a fast exit (2 per cent);
• However post exit, entrepreneurs rank their priorities as price offered (36 per cent), followed by the long term security of the business (15 per cent), suggesting that they are more concerned about its survival after the sale, and a fast exit (12 per cent) becomes considerably more important; and
• 50 per cent of respondents said that their best advice for someone planning to sell is to get the right advisers on board.

Andrew Haigh, Managing Partner for the Entrepreneurs Client Group at Coutts added: “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. But in today’s difficult market, while planning for this exit may not seem an obvious priority for owner managers, the buyout industry will eventually open up, merger and acquisition activity will increase, as will private equity investment, therefore it is essential that entrepreneurs and businesses start planning if they’re looking to take advantage of an economic upturn in the future.”

“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.”

David Molian highlights in the report, “only seven percent of businesses offered for sale attract a buyer – partly because they’re marketed really badly and partly because there is not value in the business”. Therefore preparation is fundamental. Even though there are few opportunities to sell now, things will change and they may change fast. The report recognises that getting into shape now is essential.

Andrew Haigh commented further: “Creating businesses of scale is often a marathon rather than a 100m sprint. Weathering the recession taps the creativity and resilience that is at the heart of any entrepreneur and in fact often in recessions great businesses are founded as the uncertain and volatile markets spur entrepreneurs to seize opportunities. The last three decades have seen entrepreneurs move to the heart of the UK economy so it is of no surprise that their energy is what the economy will rely on to move us back to growth.”

“40 per cent of entrepreneurs gravitate back towards starting or running a business post exit and it is this energy to create businesses that pushes entrepreneurs to thrive and drive a countries economic well being. The wealth created through the successful exit is an important element in fuelling this cycle.”

The 20 page report, which is available by visiting www.coutts.com/entrepreneurs contains case studies, interviews and analysis from entrepreneurs in a variety of industries, both pre and post exit.