Entrepreneurs prioritising wealth transfer preparation as a third plan business exits

Almost a third (32 per cent) of global entrepreneurs are considering a business transition within the next five years, rising to 57 per cent among those aged 65 and over, a report from UBS has revealed.

It’s Global Entrepreneur Report highlighted that business exit was becoming a defining moment for many entrepreneurs, which would shape the future of their companies and personal wealth.

Business owners in the US were most likely to be considering an exit in the next five years (63 per cent), followed by Europe (38 per cent), Asia-Pacific (18 per cent), and Latin America (10 per cent).

When asked how they planned to exit their business, 40 per cent expected to sell to a strategic buyer within their industry, while 23 per cent expected to pass the business on to the next generation.

Just 13 per cent anticipated selling their business to an investor, such as a private equity fund, 6 per cent were planning to take their business public, and 6 per cent expected to merge with another business.

Nearly a third (32 per cent) of entrepreneurs felt they had not built up their wealth us much as they could, but 42 per cent planned to focus on their personal wealth after a sale.

Almost half (44 per cent) said they had built up the right amount of wealth and 25 per cent believed they had accumulated more than enough.

With widespread wealth transfer on the horizon, 67 per cent were focusing on helping heirs manage wealth responsibly.

However, 61 per cent of entrepreneurs were concerned about tax efficiency when transferring their assets.

When looking for guidance, 69 per cent expected to consult lawyers, tax advisers, or estate planners.

Almost half (47 per cent) said they would consult a banker or client adviser, while just 23 per cent planned to rely on advice from their children or future heirs.

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