Exit stage right? Not so fast…

Sage Software today released the results of a recent study conducted by independent research firm Vanson Bourne on behalf of Safe Software Business Minds. The international study sought to explore the relationship of customer data, business strategies and performance, specifically in regard to exit strategies. The research, undertaken via web and phone in July, surveyed 800 business of all revenue sizes and industries across six countries, ranging from zero to 1000 employees. The UK and USA provided 200 respondents each, while Australia, France, Germany and Ireland each had 100 respondents.

According to the study of execs in small- and mid-sized businesses, seventy percent of respondents agreed that “having customer data in a single CRM system is a tangible asset.” Oddly enough, only 35 percent use a CRM solution to assist in advising on their business strategy. Vanson Bourne also commented on the “poor planning” of most of the firms, with 65 percent of them not having or unsure about their exit strategy. In contradiction, 48 percent of respondents said that CRM would reduce the risk of losing customers at an exit and would improve the continuity of the business during such a transition.

While just 35 percent of respondents reported having taken steps to plan their ultimate exit, 64 percent expressed the desire to exit within one to ten years. Forty-seven percent of respondents said that they would like to find more time for business planning and that a further 21 percent were too busy to plan the business. According to the survey, selling to a third party (34 percent) was seen as the most popular exit strategy globally with Australia (53 percent), USA (42 percent) and UK (39 percent) making it their clear choice. In France, options were split evenly (29 percent each) among family succession, business partner takeover and dissolving the business, while businesses in Germany (34 percent) planned for a family succession.

The Sage brain trust concluded that “many SMBs are not putting customer data to its best use as a tangible asset when seeking an exit. Having a central record of all customer relationships is a tangible business and financial asset for companies seeking an exit … having a CRM system provides a strong negotiation tool in which to maximize the value from the business because it provides any future owner or manager insights into the customer base and opportunities to hit the ground running, but also minimizes disruption to customer service.”

Sage Software is a provider to more than 2.6 million small- and mid-sized business customers in North America. Sage products support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of accounting practices and the construction, distribution, manufacturing, nonprofit and real estate industries. Sage Software is a subsidiary of The Sage Group plc. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now has 5.0 million customers served by 10,500 employees worldwide.