Skip to main content

By John Chionchio

This country is on the verge of an economic wave like we’ve never seen before. Baby Boomers are the most affluent generation in our country’s history. They hold approximately 60% of the nation’s wealth. There are six million privately-owned business in the United States, 67% owned by Baby Boomers. A recent survey by the Exit Planning Institute showed that 76% of them intend to exit in the next seven years. If you do the math, that’s three million of them. Trillions of dollars are at stake!

There’s a social wave in motion too. Boomer behavior is changing, almost daily, as they realize how important it is to plan for succession. They are quickly learning that operating the business day-to-day is a very different thing than monetizing it for full value upon exit. They’re figuring out that if they don’t monetize for full value, their retirement and legacy won’t be what they expected after decades of effort.

True succession planning is complex and multi-disciplinary. It goes way beyond any one area of professional expertise; business operations, tax planning, entity structures, asset protection, growth initiatives, leadership team development, legal concerns, estate/wealth transfer planning, family governance… and the list goes on. The most critical skills are “soft”, all about people and relationships that drive decision-making. True succession planning is learned experientially, and it takes a lot of reps. You can’t take a one-week certification course and suddenly have the skills.

There is a window in time to maximize what you get from your business. Business owners don’t choose advisors because they can do what everyone else does, or because they just like them. They want advisors who are on the leading edge of things that affect them. They want and need their advisors to be thought leaders who see threats and opportunities before the masses. Yet only a tiny fraction of advisors have actually crafted and implemented a succession plan, so business owners wait too long to achieve best outcomes.

Whether you will gift your business to your children, sell it to a third party, sell to an ESOP, execute an inside transfer to management or simply recapitalize it, maximizing the transferable value is always in your best interest and the best interest of those who will take over your business when you move on to the next chapter in life. This is precisely why succession planning is such a critical point for any operating business.

If you haven’t begun the process of setting up your business for a successful exit and transfer, consider this. The truth is that the longer you wait the fewer your options and the more compromised your outcomes will be. So, my advice is simple. Start now while you still have the time to get everything you can from your business after all your hard work, risk and investment.

May 17, 2022 in Business Planning, Estate Tax, Family Business, Know your story, Legacy Planning, Succession Planning, Succession Planning

Estate Plans and Succession Plans … Same Thing, Right? Not on Your Life!

Estate Plans and Succession Plans … Same Thing, Right? Not on Your Life! Estates with an operating business require succession planning to achieve full clarity By Tim Young & Michael…
Read More
April 29, 2022 in Business Planning, Executive Compensation, Family Business, Know your story, Succession Planning

Executive Compensation – What Business-Owners Need to Know

Executive Compensation – What Business-Owners Need to Know By Peter Miterko   Many public and privately owned companies have experienced explosive growth and outsized profitability in the last decade. Owners…
Read More
April 1, 2022 in Exit Planning, Family Business, Know your story, Succession Planning, Tax

Selling Your Business on Your Terms
ESOP – An Alternative Exit Strategy

Selling Your Business on Your Terms ESOP - An Alternative Exit Strategy By Frank Caputo When faced with the decision to keep or sell your business, the unknown world of…
Read More
March 15, 2022 in Exit Planning, Family Business, Know your story, Succession Planning, Tax

Aesop … ESOP?
This Succession Tool is No Fable

Aesop … ESOP? This Succession Tool is No Fable The Power of a Minority Interest ESOP in an Exit Strategy By Michael Kenneth Aesop was a slave and storyteller who…
Read More

Ready to discuss WealthPoint’s services?

Schedule A Call

Leave a Reply