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Market Data Sponsored by Market Data UK SME leaders reveal top exit strategy Published: 24th July 2024 Share Neil RudgeChief banking officer for commercial, Shawbrook More than four in ten (41%) key decision makers at UK SMEs say they are considering an exit from their business in the next 5-10 years, with nearly two in ten (17%) saying they will certainly exit in that time frame. Specialist lender Shawbrook recently surveyed SME leaders on a range of issues including exiting their companies. When quizzed on their preferred method of exit, a private sale (27%) and an acquisition (27%) emerged as the most popular choices. More than a fifth (21%) of key decision makers would look to merge, with nearly a fifth saying they would prefer a management buy-out (19%), a management buy-in (18%) or via family succession planning (17%). Further down the list, more than one in ten (13%) would like to use a different type of succession planning and 10% ambitiously look to exit via an Initial Public Offering (IPO). Neil Rudge, chief banking officer for commercial, said “Exit planning is a natural part of the business lifecycle and a process that all leaders have to consider at some point. The future and longevity of the business rely on finding the right pathway to exit when the time comes. There are numerous options and all come with their own unique advantages, so it is crucial to accurately assess your options and decide on the option that best fits you, your family and your employees.” “Our latest research shows that SME leaders are making plans and considering all the options available, from family succession to IPO. Knowing the direction of travel helps to plan the more immediate, as well as the longer term growth strategy and the funding you might need to realise those ambitions and ensure a smooth and successful transition.” Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Corporate Member Market DataSmall businesses considering growth initiatives rises Market DataUK business confidence holds steady at 8-year high Corporate Member Market DataSMEs confidence grows with optimism for year ahead