RESOURCES

Retiring Owner

As you begin to think about your retirement, you will be faced with the decision of making changes in the ownership of your company. At some point you will want to transfer ownership to another party which may include family members, key managers, employees, a strategic outside party or some combination of these.

You have several options for shaping your company's future. Careful advance planning can help you explore and resolve financial, management, personal and other issues associated with the future of your company after you retire. An appropriate transition planned will increase the strength of your company in a competitive marketplace and increase its chances of survival.

The facts are that:

• An estimated 95 percent of American businesses are family-owned.
  (source: Oregon State University)
• Of these 95 percent, only about 30 percent survive the second generation.
  (source: Oregon State University)
• Only 10 percent survive the third generation
  (source: Oregon State University)
• Just 28 percent of family-owned businesses have developed a succession plan.
  (source: Mass Mutual)
• Between 40 to 60% of owners of family businesses want to keep the business in the family.
  (source: Family Business Magazine)
• A third of owners do not know what is the best long-term objective for their business.
  (source: Family Business Magazine)

With odds like these, it is never too early to begin planning. You may also find that you lack a suitable heir and your best exit strategy may be the sale of your company to a non-family member. Selling your company to a non-family member takes careful preparation and planning. Whether you sell to loyal key employees or to a strategic outside party, qualified professionals are essential to complete a successful sale.