Why You Should Prepare For The Exit From Your Business
Recent studies show that 66 percent of current U.S. businesses are owned by Baby Boomers, who will be transitioning out of or closing their businesses over the next ten years.
Previous surveys conducted by the Exit Planning Institute, PricewaterhouseCoopers, the Alliance of Mergers and Acquisitions, Business Broker Press, and the Family Firm Institute have determined that historical transition success rates are only 20-30 percent nationally; leaving up to 70-80 percent of business owners without solid options to harvest their wealth and ensure economic continuity into the next generation.
HOW READY ARE YOU?
An owner who is “ready” with an attractive business greatly increases the odds that the business will survive a transition of ownership or management. The question is, how ready are you?
The significance of business asset transition is of major importance beyond the owners and their families. Failure to provide for the continuity of a business affects not only owners’ personal wealth and that of their families, but also the future of employees, financial institutions, landlords and others who depend on the business’s successful transition.
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To understand the complexities of preparing a company, and you, for transition, complete the free ExitMap® assessment questionnaire. The questionnaire has 22 questions and produces a comprehensive 12-page summary report. The report ranks your overall preparedness for transition and provides a breakdown of the four major categories of readiness: