49% of European SME entrepreneurs do not have a clear exit strategy

The latest Marktlink Monitor reveals that 50% of European SME entrepreneurs have considered a potential succession in the past 12 months. This indicates that the topic is certainly on their radar, yet many entrepreneurs have not taken concrete steps to develop an action plan. Only 48% say they are open to an early exit, while 49% admit to not having a clear exit strategy.

More than a quarter of the 1,066 entrepreneurs surveyed indicated that they seriously considered leaving their business in the past year. However, the step towards taking actual action is often not taken. For many entrepreneurs, planning and executing an exit strategy proves to be a complex and challenging task. Therefore, it is crucial to start early and seek proper guidance.

Exit strategy among British entrepreneurs

Around 50% of British SME owners do not fully understand the steps required to prepare their businesses for sale, nor the challenges they might face. Among British SME entrepreneurs, 42% lack a clear exit strategy, and 42% do not know how much their businesses need to generate to allow them to exit entrepreneurship.

Joe Moran, managing partner of Marktlink's Midlands offices, highlights the need for careful planning: "Selling a business is not straightforward; it requires years of meticulous planning and preparation. Although the market is recovering, entrepreneurs must be prepared for potential tax increases and economic changes that could impact their sale."