With the largest generation in our country’s history entering retirement age, and many of the nation’s private businesses owned and run by Baby Boomers, it is becoming increasingly important to be prepared for a future transition of ownership. There is an expected wave of exiting owners who, once they begin to transition their companies, will likely change the landscape for the transfer of privately-held businesses.

Our clients often ask:

Do you need the value of the equity built up inside your business to supplement your retirement?

Most business owners have invested the best years of their lives and much of their financial resources building and sustaining their businesses through many business cycles. Most business owners have 75% - 80% of their net worth tied up inside the value of their enterprise. Do you have enough invested to maintain your lifestyle post retirement? Do you know the value of your business?  Do you know how to access this major non liquid asset?

Do you have a succession plan?

80% of businesses fail to sell successfully externally, transition internally or to the next generation. This failure rate is due to lack of planning. The issues most successful businesses face making this transition are often times not do to cash flow and the balance sheet…but the lack of a plan to transition from their business. All business owners know that serving their valued customers comes first. Unfortunately for most, serving their business and financial future ends up on the back burner.

What are you personal plans after running your business?

For many business owners… the business becomes not only their identity…but a sinkhole for all their time and energy to in achieving success. When the business is transferred…successfully of not….internally, externally or to a willing buyer, the owner has a gap to fill. This emotional readiness piece is as important as the owners financial readiness. Our team works with business owners prior to this decision to ensure they are prepared for this transition. In many cases this transition may involve an entire family.