Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
More than four in 10 (44%) of business owners working towards an exit have postponed their plans over the last year, according to new data from S&W.
The poll of 500 business owners found that almost as many have brought their exit forward (41%) while only 15% say their timescales remain unchanged.
It also found that a sizable number of those who have fast-tracked exits have done so over worries about tax changes.
S&W’s poll found 28% of those who had accelerated their exits, did so because of cuts to business property relief due to take effect from April 2026. This could make it more costly to pass businesses on to the next generation.
Meanwhile, 20% of those surveyed who accelerated exits were worried about a potential increase to CGT rates in a future Budget.
Mark Brockway, corporate finance partner at S&W, said: “The split between those who have brought forward their exit strategy and those who postponed it may not be as odd as it first appears. Much will depend on owners’ timescales and their optimism or otherwise about the future. For some, the economic uncertainty resulting from both domestic and international issues – and its impact on valuations – is an obvious motivation to delay.
“However, for other owners, perhaps having already delayed an exit to give time to recover from the pandemic, a further wait does not appeal. With significant challenges facing the UK and global economy, and no easy answers, some may reasonably conclude that a delay won’t necessarily bring an improvement.
Laura Hayward, tax partner at S&W, added: “Our research shows that many business owners working towards an exit have fast-tracked plans because of unfavourable tax changes already announced or others they fear might come in the future. Many businesses have had a tough time in recent years, and it is completely understandable some owners are hoping to realise the gains of their successes sooner rather than later.
“Business property relief plays a huge role in helping family businesses pass from generation to generation. Businesses urgently need to review their plans before next April. Furthermore, we know from talking to business owners that many have considerable worries that taxes could be increased further in the Autumn Budget to pay for the government’s spending commitments given the gaps in UK public finances.”
