For baby boomers much of their identity is interwoven with their business. They have a strong reluctance to discuss their exit plans. The principal reason for this reluctance is a desire to avoid examining their life after the business.
Over 80% of small businesses listed for sale to a third party never sell. Less than 25% of boomer owners voluntarily start a conversation with an advisor about exiting the business. When they do, the advisor typically focuses on the area of his or her expertise. Accountants focus on tax planning, attorneys focus on preparing documentation. In reality, professional exit planning should address all of these things along with a careful analysis of the company’s preparedness to deliver the financial expectations of the owner. Exit planning is best done as a collaborative effort with multiple professionals and led by an experienced exit planning advisor.
Source: The Exit Map® Advisor’s Guide, 2020.