Young UK entrepreneurs are far more keen to sell their business than their older peers, according to new research by Brown Shipley, a Quintet Private Bank.
More than half (57%) of British entrepreneurs between 18-34 said they were intent on crystalising wealth by selling their business in its entirety. This fell to 36% among entrepreneurs between 34-54, and just 19% among entrepreneurs aged 55 and over. The latter demographic is more concerned with “establishing a legacy” than their younger peers.
Overall, entrepreneurs are sharply divided over whether to keep their companies in the family or pass the business on to staff. The survey found that 35% of business owners planned to reduce their equity while maintaining ownership within the family, compared with 33% who had an internal succession plan for employee-owners.
When looking at gender differences, the survey found that male entrepreneurs are more likely to favour “cashing in,” with almost half (46%) saying they intend to sell their business, compared to less than one-third (32%) of female entrepreneurs. Even if men are more likely to seek to sell their business than are women, male entrepreneurs are nevertheless more keen to keep ownership within the family – with 39% of men saying they want to retain family ownership, compared to 28% of women.
Gordon Scott, Head of Client Solutions at Brown Shipley, commented: “Over the past few years, we’ve seen an unprecedented number of black swan events which have impacted the economy including Covid-19, war in Europe, a global energy crisis and soaring inflation.
“Against this backdrop of uncertainty, a growing number of entrepreneurs are pausing to think about their long-term personal and professional goals.
“As a result, we are seeing greater numbers of entrepreneurial clients seeking to understand the options for their business, whether selling to private equity or other investors, passing on to family members or reducing their own equity to free up capital.”
ENDS
The information contained in this press releases is intended solely for journalists and should not be used to make financial decisions.
For further information, please contact:
Maria Shum at Brown Shipley, a Quintet Private Bank
Tel: 07866 791362
Email:
Maria.Shum@brownshipley.co.uk
Gilly Lock at Powerscourt Group
Tel: 07711 380 007
Email:
brownshipley@powerscourt-group.com
About Brown Shipley, a Quintet Private Bank:
Brown Shipley is a wealth manager offering clients informed financial advice and tailored services on all aspects of wealth planning, investment management and lending. Brown Shipley has offices in London, Manchester, Birmingham, Cambridge, Leeds, Edinburgh, Norwich and Nottingham; the firm’s heritage dates back to 1810.
Brown Shipley’s parent company is Quintet Private Bank, which from Luxembourg heads a major European network of private banks and wealth managers.
Brown Shipley is a trading name of Brown Shipley & Co Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. Registered in England & Wales No. 398426.
Notes to editors:
Opinium Research surveyed a representative sample of 4,000 UK adults between 6 November 2022 and 10 January 2023. 692 of those surveyed have estimated financial assets in excess of £150,000 and/or a main home valued at £1m or more; of those, 390 identified themselves as ‘entrepreneurs’ and/or ‘business owners’.
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