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More than
half (53%) of
Baby Boomer business
owners intend to exit
in the next 10 years.
More than
half of those
Baby Boomers (55%)
expect to sell their business
to a third party, while 20%
expect to sell to employees.
Only about
one in seven
(14%) expects to pass the
business to family.
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What is exit planning? |
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Exit planning is the
process of ensuring the future success and continuity of your
business after you retire. As the ExitPlanningResearch.com survey
has shown, the majority of business owners understand the
importance of solid exit planning and business continuity
strategy, but many, for various reasons, nor have they sought
expert exit planning strategy counsel. |
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Service Providers |
All
closely-held business owners inevitably exit from their
businesses. The vast majority surveyed (88 percent) do not have a
written, up-to-date exit plan. With the aging of the Baby Boomers
– America’s “entrepreneurialist” generation – there will be a
growing need for tax, legal and financial experts to bring value
to business owner clients regarding strategic exit planning. The
2008 White Horse Advisors Survey of Closely-Held Business Owners
reveals large gaps in owners’ preparedness and owners’
expectations that their accountants and lawyers are their first
line of resources.
Service providers hoping to respond to this impending demand must
understand:
- Business owner
clients’ objectives, concerns and current level of preparedness
- What critical
issues – beyond their own specific practice expertise – must be
addressed in the exit planning process
- How tax, legal and
exit advisors collaborate to provide superior guidance to
business owner clients
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Business Owners |
| Owners
overwhelmingly recognize the importance of an exit strategy, but
in nearly every important area they are not prepared for their
inevitable exit. On the surface, it appears that the lack of
preparation may be attributed to the belief that the need to plan
for exit can wait until only a few years before the target date.
However, even the oldest owners surveyed stated they are
unprepared in most areas so the true culprit appears to be
procrastination and uncertainty on the proper steps.
Owners who intend to
pass their businesses to family members seem even further lagging
in preparedness. The inevitable wave of Baby Boomer business
owners seeking to sell their businesses may face a supply and
demand problem – a larger number of owners seeking to exit than the
supply of buyers. Further study on this is necessary. |
LEARN MORE ABOUT EXIT PLANNING STRATEGY:
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