For a lot of small business owners, 2020 has left an indelible mark. As the prospect that a capital gains tax increase looms large, many owners are deciding to expedite their exit plans. They are deciding not to try to stick around for the next “Black Swan” event.
New data suggests that exit planning advisors will be busy in 2021. John Warillow, owner and developer of “The Value Builder System”, recently analyzed the data from roughly 10,000 owner users from prior to March and compared that data to the owners who have used the system since March.
Statistically speaking, the data suggests that the economic environment resulting from governmental coronavirus decision-making, has caused owners to move their exit date forward by 20%. Owners are now more likely to say their intention is to sell their business to a third party (56%) rather than sell to the next generation management (23%) or to their kids (12%).
These business owners are going to increasingly be looking for help. A professional exit planning advisor is a great source to find that help.
FPA Owner Transitions 