Business owners increasingly likely to sell in short term
More business owners planning to sell within two years Estimated market value of businesses is changing Profit overtakes customer base as driver of business value An increasing number of business owners are planning to sell within two years, and perceptions are changing over the market value of their businesses, according to survey results released by ASB. The Q1 2010 ASB Succession Planning Monitor reveals that although the “good time to sell” index remains fairly static – with most business owners surveyed believing now is not a good time to sell – respondents are changing their perceptions about what drives the value of their business. ASB’s Chief Executive, Relationship Banking, Stewart McRobie says the impact of the economic recovery could well be influencing the results. “For the past year we have seen business owners battening down the hatches and putting off selling their businesses for the foreseeable future, or at least for the next five years,” he says. Business sale plans taking shape This quarter, however, we have seen a six percent increase in the number of business owners saying they are considering selling their business in the short term. Almost 20 percent now say they may sell within two years, as opposed to 14 percent last quarter” adds Mr McRobie. This is a significant shift in sentiment, even though the majority of business owners still say they are not planning to sell within the next five years. The next six months will be crucial in determining whether the tide really has turned in this respect,” Mr McRobie says. Encouragingly, there is also a significant drop in business owners planning to close down and sell their assets (11 percent), and an increase in those business owners with plans to sell to a current staff member (12 percent). The most popular means […]