Vital statistics to know about exiting…
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100% of owners will exit their business eventually
The key is on whose terms will that exit happen?
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63% of owners plan to transition over the next 10 years
This represents a potential wealth transfer of nearly $12 trillion. (2023-2033)
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99% of owners agree with this statement:
“Having a transition strategy is important both for my future and for the future of my business.”
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79% of owners have no written transition plan
The general assumption is they will do it later, often waiting until it is too late.
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94% of owners have no written personal "3rd-Act" plan
One of the biggest mistakes of owners is not clearly articulating what life will truly be like after the exit is finished.
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76% of owners who do sell regret it within one year
Why? Because they didn’t take the time to plan for their lives after the sale.
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49% of owners have done no planning at all
If the sale of the business is important for financial/retirement reasons, planning is essential.
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Over 70% of businesses either never sell or sell for less than desired
This is a direct result of not planning far enough in advance.
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50% of business owners exits are involuntary
The cause of this is related to the “5 D’s” and must be accounted for.
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Only 30% of family-owned business will successfully transition to the 2nd generation
And only 12% survive to the third. Planning is crucial.
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60% of owners do not understand their exit options
That is why a Trusted CEPA Advisor can be so critical to the plan.
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80% of the average owners wealth is tied up in their business
Selling for a premium is a must for many owners.