Ownership Transition Strategies

The Business Management Roundtable has organized a presentation on Internal Ownership Transition Plans by Dyanne Ross-Hanson, President of Exit Planning Strategies, LLC.  This presentation is free and available to all Chamber Members and their guests.

Program Description
An estimated six million privately held companies currently operate in the United States. Per US census data, 63% of these are owned by baby boomers, who currently range in age from 53 to 71.
79% of those owners plan to transition ownership in their businesses within the next 10 years. Eighty to ninety percent of most owner’s financial assets are bound up in the business itself.
Given the significance of this asset in the owner’s wealth portfolio, the ability to monetize this wealth at some point, will have a significant impact on the owner’s financial security and lifestyle once he or she exits the business.  
 
A recent national survey attempting to identify the business owner’s readiness and objectives regarding transitioning their businesses, indicated the following statistics.

• 98% believed that, “Having a transition strategy was important for their future as well as the future of their business.”

• 40+% intended to transition to an “internal” buyer, i.e. co-owner, management team, family members or some combination.
• 38% have taken no planning steps.
• 17% have created written Exit Plans.

0. Planning Process: Answers the question of, “Where do I begin”, by identifying a proven process for development of an intentional plan for transition.
1. Design Options: Typical strategies employed by owners, who have successfully transitioned to inside buyers. Financing and tax implications of each.
2. Family Transition Plans: Unique challenges and strategies to consider.  Fair vs. Equal!
3. Back Up Plan: Importance of having one! Lack/loss of talent, momentum, bonding ability, and financial backing should all be addressed in your contingency plan.