Majority of Australian small-to-medium enterprises lack an exit strategy plan despite it being proven that an exit strategy can boost a business’ sale price by three or four times, a business advisory firm said.
Business Companion found 75 per cent of Australian SMEs did not have an exit plan, while a survey of over 17,000 businesses by Value Builder System revealed 88 per cent of business owners over 60 years old did not receive an investor offer for their business.
Business Companion chief executive, Koos Kruger, said SMEs could be sitting on a retirement goldmine if they implemented the right strategy.
“Not using an exit strategy for a business sale is like going to auction with a rundown and messy house, or without marketing or advertising — you’re guaranteed to achieve a significantly lower price,” Kruger said.