The vast majority (90%) of business owners are confident they understand the value of their business but only a third (32%) have had a recent valuation, according to Hymans Robertson Personal Wealth.
The gap between confidence and certainty could affect financial planning, resilience and long-term financial strategy, the firm warned.
The report, Protecting what you’ve built: family business resilience, found that over half (52%) of business owners were concerned about tax and policy change and around three quarters (74%) are planning for succession. However, only having an informal understanding of the value of their family business can limit business owner’s ability to foresee the size of implications of change and may negatively impact the future longevity of the business, the report showed.
Jeff Simpson, head of wealth management at Hymans Robertson Personal Wealth said: “Many owners are navigating extended periods of growing uncertainty. Shifting tax policy, rising operational costs, and the complexities of succession and intergenerational wealth transfer mean owners are being asked to make bigger decisions, often faster than they would like.
“Our report shows that while confidence in understanding business value is high, this confidence isn’t always backed by a recent professional valuation. Without an accurate, up to date view of what their business is worth, it becomes much harder to anticipate the scale of potential tax liabilities, manage wealth effectively across generations, or plan for the future stability of the business.”
Simpson said a strong valuation won’t only inform financial planning but supports continuity and clarity in inheritance discussions.
“In many ways, it is the foundation for resilience and brings some confidence in a landscape where the only constant is change,” he added.
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