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The number of entrepreneurs under the age of 40 selling their businesses has increased by 23% in the last year, rising from 4,719 in 2019/20 to 5,803 in 2020/21, according to new research by Hazlewoods.
Recent years have seen significant success stories for young UK tech company entrepreneurs who have sold their businesses to PE/VC funds, alongside consolidation across various other sectors, including veterinary, healthcare and financial services.
According to Hazlewoods, these deals formed part of a strong period of private equity-led dealmaking in the UK from late 2020 to mid-2022.
The year ending April 5 2021 saw under-40 entrepreneurs sell businesses worth £1.03bn.
Andy Hogarth, financial planning partner at Hazlewoods, said: “In the last few years, a lot of young entrepreneurs in the UK have become extremely wealthy by building their businesses and exiting them, often to PE. These figures show just how successful those exits were.
“Having sold their businesses, many of these young entrepreneurs now have new opportunities, including potentially retiring early. However, it’s important to consider how the change will impact their income, pension planning and tax position.”
