Current market conditions also play a large role, with 65 per cent selling up sooner than they had wanted due to the fear of tax rises, the research reveals. One in five entrepreneurs also said they received offers they couldn’t refuse, often resulting in hasty decisions and heightened uncertainty.

Arbuthnot Latham partnered with The Wisdom Council, a company that provides consumer insight to the financial services sector, to survey 100 entrepreneurs from small to medium sized UK enterprises. The research – completed in September 2024 – included in-depth interviews with six entrepreneurs who are current Arbuthnot Latham clients.

Already, the issues business owners confront when they want to sell, or transfer a business to heirs, employees or others, are important topics for private banks and wealth advisors to wrestle with. For family-run firms in the UK, they face the decline of tax reliefs on business property, adding to the stress of running such firms. 

Anxiety
It shows that over 52 per cent experience anxiety during the exit period, but this feeling was nearly twice as likely in women compared with men (78 per cent vs 38 per cent). Anxiety levels are likely to be linked to receiving the right support and guidance, with just 44 per cent of women having access to financial or professional advisors, compared with 63 per cent of men. 

Post-exit, many entrepreneurs were found to have experienced a surprising void without the structure and identity provided by their business. Around 70 per cent of respondents redirected their focus to family, 38 per cent said they explored new interests and hobbies, and 31 per cent remained engaged with their business in some capacity.

The report showed that planning ahead significantly eased the transition to life after exit. Among those surveyed, 61 per cent felt completely or mostly prepared for life post-exit. In contrast, the 39 per cent who said they felt only somewhat prepared reported grappling with feelings of aimlessness and uncertainty as they adjusted to the loss of structure and identity that their business once provided.

“Professional financial advisors were ranked as the most valuable source of support during the exit experience, along with lawyers,” Kevin Barrett, head of private and commercial banking at Arbuthnot Latham, said. “This confirms what we already felt strongly about, the need for a human and personal service, focused on supporting entrepreneurs across both their business and personal wealth.” 

“Amid exit preparations, critical elements like family wealth management and long-term financial planning can sometimes be overlooked. By addressing these considerations early, ideally two or more years in advance, entrepreneurs can help secure their financial legacy and ensure a smooth transition to life after exit, with stability and peace of mind,” he continued.

“Entrepreneurs have been, and continue to be, the backbone of the UK’s economic growth and innovation. Their resilience and ambition shape not only our present but our future, and it’s vital that we collectively ensure they are supported beyond the balance sheet – helping them navigate challenges so they can continue driving progress and prosperity,” Barrett said.

“Throughout my entrepreneurial journey, I’ve learned that the most valuable advice is from people who understand the human side of running a business,” Touker Suleyman, CEO/owner Hawes & Curtis and Dragons’ Den panellist, added. “It’s not just about numbers or strategy; it’s about recognising the personal and emotional aspects of change. Having access to friends and advisors who can empathise with these challenges and provide support are invaluable.”