A 2012 survey by John Warrillow and his company called “The Sellability Score” has some interesting findings; especially for those business owners who may be thinking about eventually exiting by selling their business.
These survey results come from 1245 respondents who own a majority of their company and with annual sales of less than $20M.
Highlights from the survey :
- 88% of respondents do not have an exit plan.
- 76% of respondents expect to exit their business in the next 10 years.
- 61% expect to sell their business to a third-party, that is, not pass it on to a family member or current employee.
- Only 10% are considering passing it on to one of their children.
- 70% expect to stay on for less than 12 months after the sale closes.
- 33% expect the sale of their business to fund their retirement.
- 17.1% expect to earn a return of 4% or less on their money when they retire.
- 68.4% expect to earn a return of 5 to 10% on their money when they retire.
- 14.5% expect to earn a return of 10% or more on their money when they retire.
- 31.7% have delayed selling their business due to the poor performance of the economy.
Are you among the 88% who do not have an exit plan? If you are eventually planning to exit by selling your business then now is the time to start working on a plan.
- Business Succession Planning | Planning for the Small Business Owner (fortenberrylaw.com)
- CEO Releases Tips Today for Small Business Owners Wanting to Sell a Business (prweb.com)
- Impending wave of business-owner retirements could seriously hurt Canadian economy: CIBC (business.financialpost.com)
- Planning an exit strategy [Paul Lange] (ecademy.com)