A quarter of small business entrepreneurs plan on selling their company but half are unaware of how much it is worth, new research reveals.
Some 92,000 small firms are expected to go up for sale but 43,000 owners have no clear picture about the true value of their venture, according to the report from the Tenon Forum.
Bosses of the UK's smallest businesses are the worst offenders. Although a third hope to find a buyer for the company, only 37% know the sale value of their assets.
In addition, an overall 52% of SME entrepreneurs lack an exit strategy which outlines the process that will occur when they come to sell their business.
Ian Breswick, director of corporate finance at Tenon, said: "Optimism in the retail, leisure, manufacturing and transport sectors is falling and this correlates with those businesses that tell us they're thinking of getting out before it gets worse.
"[It is concerning] how many small businesses don't have an accurate picture of what their assets are worth. This seriously impedes proper planning.
"We've found that many very small business owners have an unrealistically optimistic view of the sale value of their company."
