Across the United States, millions of Baby Boomer generation business owners are approaching retirement age and have a need to protect the wealth build up in their businesses. They face a number of obstacles to developing and executing a business exit strategy that will successfully meet their retirement objectives.
It has been reported that for 70% of small and middle market business owners their business represents the largest share of their net worth, 65% to 85%. As a result, converting non-liquid business assets into cash will be critical to meeting their retirement lifestyle objectives. Without a comprehensive written Business Exit Plan most owners will not be able to retire on their terms and their schedule. Instead, they will be dependent of a “default” strategy, that is selling to an outside third party. Yet, only a small percentage, 20%-25%, of businesses actually sell. Therefore solutions other than selling the business outside, need to be applied to these millions of business owners.
A highly diverse marketplace of advisors makes it difficult for exiting business owners to navigate the numerous choices for a successful exit or transition. Advice is often delivered in a fragmented manner that tends to emphasize the way the advisor gets paid as opposed to a holistic and comprehensive approach based on the owner’s financial and personal objectives.
Business Exit Timing, LLC was founded to bring order to the complexity that surrounds the business exit planning process. We can serve as a member of your client’s advisory team or as a consultant to you as the trusted advisor. We are dedicated to assisting your independent practice or firm attract new business owner clients and/or retain existing clients by adding an exclusive suite of Business Exit Planning products to your menu of client services. Our expertise and experience will better position your practice to accommodate the wave of affluent family business owner transitions expected to occur over the next several years.
Future e-newsletters will discuss the scope of this market, relative business exit strategies and procedures for developing comprehensive Business Exit Plans.