In an interesting study it is reported that medium to large business owners are likely to sell their business within the next decade, reports the Grant Thornton’s International Business Report (IBR). The survey included 7,200 medium to large business owners from across the globe and found that 28% of the businesses are expected to change hands in the next decade.
53% of U.K. owners expect to sell in the next 3-5 years while 18% are considering it to happen in the next two years. If Gordon Brownís crackdown on capital gains tax relief happens, as expected, the there will be a rise in the number of companies selling out. Businesses in the EU countries seem to be waiting for capital gains tax relief clarification.
“Exiting from a business is one of the most important decisions a business owner makes.” says Alysoun Stewart, head of Grant Thornton’s strategic services group. Thus business owners are being encouraged to give the decision due thought and plan accordingly.
Amongst the buy out options trade sale was considered as the most popular sale option by 51% of the U.K. businesses. Next was management buy in or buy out and 8% expected an IPO in the next decade.