In practical terms, Prior says, it's not always some 'catalytic' event that prompts action, but having frank and positive conversations with clients.
"The conversations I have centre around not just helping owners run their businesses but have a focus for the future.
"This does not have to be a negative thing. Sometimes the language we use can help drive these conversations forward. So rather than 'what if something happens to you'?, you can ask 'what would happen if you got a good offer for the business?'
"The consequences can be similar in terms of the contingency plan - how well prepared the business is for such an event - but it leads to questions about how they will pass on the value."
Various measures
He said often business owners have several things to think about when it comes to their potential exit strategy.
For example, should they want to hand the business onto the next generation or to family members - a big consideration for HNW owners in China and India, according to the 2023 report - then it would be important to bring them into the business earlier, and explain the strategy and propositions to them.
"How much are you developing those family members? Are they capable of running the business? When are you going to cede ownership to them? How much control will you - and can you realistically - relinquish?" said Prior.
In these cases, family transitions can be a "long process - 10 or 20 years even", he said.
"On the other hand, if there is no family transition, have you as adviser-owners or your clients identified the likely next owners or buyers of this business?"
Prior commented: "Other questions to ask when setting out the strategy might be: is your business well suited to private equity, or to a trade buyer, or to an employee ownership trust structure, or a management buy-out?
"All these require a different approach and solutions - and certainly you should get an external team to come in and help you and your other directors or senior members with the transition process."
Another key question to ask, according to Prior, is: "If everything hinges on you, then have you prepared yourself to transition? How do you groom for a sale - and are you ready to let go? What are you going to do next?"
According to 12 per cent of the 960-plus businesses surveyed in the 2023 report, the owners have "no idea" what they will do after a transition.
