A survey finds seven out of 10 business owners report they don’t have an exit plan to transition their business in the event of death, disability or retirement.
Instead, according to the survey released recently by Principal Financial Group, owners focus on growing their business (70 percent) followed by achieving business stability and remaining active in the business after retirement (both 47 percent).
“Recent market events have forced most people to reassess financial priorities, but the task looms larger for business owners who must take stock of their personal and business needs,” said Steve Parrish, national advanced solutions consultant for the Principal Financial Group. “Many owners said their retirement plan is to never retire, while others plan to fund retirement by selling their business. By not developing a plan to exit their business, they leave it vulnerable to be sold for less than it’s worth, creating a negative financial impact for themselves and their family.”