TFG Business Exit Report - 4th Edition
TFG Report of Closely-Held Business Owners – 4th Edition: The Exit Planning Process
Tax & Financial Group has completed the 4th edition of an extensive survey of small to medium sized business owners to determine strategies and trends in the areas of exit and succession planning. The high-level goal is to provide owners with insight into what other business owners are doing on this important subject. The findings will also allow owners to compare their progress to a summary of these exit and succession efforts.
The survey uncovered several interesting findings, including:
- 92% of owners say they don't have an exit strategy in place, a slightly higher percentage than in previous years.
- 70% want to exit their business in less than 10 years
- Selling to outsiders or selling to family members is still the most likely exit strategy in owner's minds.
- Grooming a successor is cited more prevalently as a key to exit. However, potential financing or purchase by a successor is seen as a larger obstacle than in the past.
- Developing a written exit plan is also seen as important to owners, while obtaining a business valuation is seen as a less important piece of a plan than in previous years.
- Personal retirement preparation is still a critical issue for most owners, yet only 50% have an idea of what they will need to retire.
- One of the new questions we asked in this edition was whether or not owners are investing outside of their business. Here we found that owners are doing a fairly good job in diversification of their assets, with many investing in 2-4 asset categories besides their business.
If you are concerned at all about where you stand as it relates to your exit from your business, please contact us. There are steps that every business owner should be taking to prepare for their exit. We can guide you along this path and help you address the critical issues and potential solutions in this important process.
Let us help you identify and achieve the “fruits of your labor” from something that you have spent much of your life’s work on – your business!