Smart Exit Strategies: Ownership Transition Options for UK SMEs bizjournal.co.uk

Many small and medium-sized enterprises (SMEs) in the UK are approaching a turning point as their owners plan to step down. Effective ownership transition is essential to secure the future of these businesses. The article outlines key strategies available to SME owners seeking to exit or pass on their companies, while ensuring continuity and stability.

The most common option is a third-party sale, either to a competitor, investor, or private equity firm. While this route can offer immediate financial gain, it requires significant preparation and due diligence to attract serious buyers.

Another approach gaining traction is the management buyout (MBO), where the existing leadership team purchases the business. This model retains company culture and operational consistency, making it a preferred choice for owners valuing legacy.