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November 8, 2023
NEW research has uncovered a marked increase in the number of business owners who wind up rather than sell their business when they retire.
Despite the tough economic conditions, thousands of businesses are being discontinued every year by owners over 60, often without them even trying to find a buyer, said research from Experian Corpfin.
It found over 80,000 businesses with a turnover of less than £10m, and owners aged over 60 stopped trading in the last year, but not as a result of insolvency.
Maxine Pott, corporate finance partner at Newcastle based accountants RMT believes that many of the regions business owners approaching retirement age have a misconception that there are no buyers out there for their business.
She said: With the ongoing tough economic climate, many owner-managed businesses have the impression that finding a buyer will be so challenging that they do not even try.
However, regardless of how difficult many markets are at the moment, there are always investors or competitors who may be looking to expand or simply pick up a bargain, and retiring business leaders could be missing out on a capital sum if they do not at least test the water. From both personal experience and anecdotal evidence, I know that a huge proportion of business owners simply wind up their business when they retire.
To find out more please contact RMT Accountants & Business Advisors Newcastle