the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects



Workforce development 


Business &

Property &
Development sites




Consultation opportunities

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton

© Brighton & Hove
Business Forum

News - 25 June 2004

How much is your business worth?

According to a new survey, from Devonshire Corporate Finance, entrepreneurs are undervaluing their businesses. The survey reveals that 51% of business owners mistakenly believe that the most likely buyer for their business is a direct competitor.

The survey - Exit Strategies for Small to Medium Enterprises (SMES)- also showed while more than half of those interviewed plan to sell their business very few were grooming it for that purpose and even fewer had taken professional advice on how to get the best possible price for it.

Steven Neal, director, Devonshire Corporate Finance comments, "It is the strategic buyer, not a businesses competitor, who pays a premium price for a business. The survey shows that many owner managers may not appreciate this and could consequently be missing out on achieving the best price for their business. The sale of a business is often a once in a lifetime opportunity, so it is essential to get it right and achieve the best price."

According to the research, 92% of owner managers were aware of what is meant by an exit strategy, however 70% do not have any formalised exit strategy in place. Neal comments: "It is critical that owner managers formulate a written exit strategy. It is surprising how many successful entrepreneurs often fail to consider this in sufficient depth. It really is a case of not thoroughly planning for their exit, is planning to fail.

" The research showed that the main reasons why owner managers had considered selling their business in the past included receiving an offer they couldn't refuse or that they were approaching retirement age. Indeed, after the sale, 29% said that their main priority would be to spend more time with family and friends. Although nearly 9 out of 10 owner managers stated that their current management team was sufficiently competent to run the business on its own, only 52% would consider selling the business to them (a management buyout).

The majority of owner managers do not expect any close family member to join (71%) or take over their business (79%) when they retire. Perhaps reflecting the entrepreneurial nature of business owners, after the sale, 46% of business owners would like to keep working, 31% for the same company and 15% for another company.

Nearly half of managers interviewed have bought at least one business in the last 10 years. One in 3 have bought up to 2 businesses and a further 12% have bought more than three. In contrast, the incidences of selling a business are lower - 9 out of 10 managers said that they hadn't sold a business in the last 10 years.

When it comes to the money received from the sale of the business, the most popular pay out option proved to be a cash sum paid out immediately. Although, approximately 1 in 6 owner managers would prefer either a large sum spread over a period of time or an even larger sum spread over time, but dependent on the company's performance.

Read related items on:
Devonshire Corporate Finance

Browse our business Knowledgebase or search by keyword


14 March 2018
Better Business for All Event with BEIS
7 March 2018
Brighton celebrates women in tech as Spring Forward festival returns for a fourth year 6 March 2018
Six months of success for BTN BikeShare 2 March 2018
Sustainability in Action masterclasses for Sussex businesses 2 March 2018
Doing Business in China comes to Brighton 1 March 2018
Brighton & Hove Chamber of Commerce presents: Protecting your brand- a guide for fast growth businesses 1 March 2018
Long haul passengers boost local economy and jobs, according to new Gatwick report on the 'Visitor Economy' 28 February 2018
Save time reporting crime 27 February 2018
Warren Morgan Resigns from Brighton & Hove City Council 23 February 2018
Brighton Technology Company, Paxton Ranks in Sunday Times 100 Best Companies to Work For 23 February 2018
Greater Brighton's Commercial Property Database 22 February 2018
SE-ASSIST - Launch of Loan Capital in Greater Brighton 19 February 2018
House Price update Q4 2017 19 February 2018
What would you do in a crisis? 19 February 2018
The investment journey for high growth entrepreneurs 9 February 2018
Make Change Count 2018 - helping rough sleepers in Brighton & Hove 8 February 2018
Brighton Technology Company Paxton Announces Recipients of New Scholarship Programmein Association with the University of Brighton 8 February 2018
Cyber London Accelerator Invites Summer 2018 Entries 8 February 2018
Innovate UK Launches Strand 2 Emerging and Enabling Technologies Sector Competition 8 February 2018
Success In Sussex As Food And Drink Heroes Crowned Winners 8 February 2018
UK Games Fund - Fourth Round Open to Applications 8 February 2018
Innovate UK & Prince's Trust Launch Young Innovators' Programme 6 February 2018
Brighton & Hove Food Partnership launches 'Kit Out The Kitchen' crowdfunding campaign 2 February 2018
Brighton & Hove Council and Crest Nicholson win £15m government funding to kickstart King Alfred project 1 February 2018
Could a Utilise Plus Programme grant help you? 1 February 2018
Shoreham Port Facilitates Huge Operation 18 January 2018
IUK Announces Collaborative R&D Funding for Connected and Autonomous Vehicles Simulation 18 January 2018
Renault-Nissan-Mitsubishi Launches $1 Billion Corporate Venture Capital Fund for Next Generation Mobility 17 January 2018
PORTlife #17 Newsletter Out Now 17 January 2018
Over £19,000 raised for Burning the Clocks 2017 11 January 2018
Brighton Main Line Improvement Project: Planned closures in October 2018 and February 2019 11 January 2018
Come on in! Fairtrade Fortnight 2018 8 January 2018
Sussex Business SkillSnap targets hospitality industry skill shortage 3 January 2018
House Price update 2017 Q3 20 December 2017
£14.35 Million European Regional Development Fund Launched 19 December 2017
Leading the way - Sustainability in Action masterclass 15 December 2017
Brighton is among the best places to start a business due to their strong growth factors 15 December 2017
GTR consultation ends 20th Dec 2017 13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop 12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs