More than two-thirds of U.S. businesses are currently owned by someone aged 67 or older. This number is growing, too, as ten thousand people per day are turning 65. Against this backdrop, up to three-quarters of companies in the United States will come up for sale in the next 5-10 years. According to UNC’s Business School, nearly two-thirds of companies in that category have not planned yet for the departure of an owner and the organizational change that follows.
Key issues involved in this discussion about ownership shifts include ignoring retirement, failing to plan for the unexpected, not adequately training takeover staff, and a lack of younger managers in the picture ready to be trained for a bigger role. There are also challenges associated with over-valuing the business or assuming that trusted colleagues or family members wish to succeed the departing owner. While this might be the case, it is always valuable to set up a conversation confirming this sooner rather than later so that there are no unpleasant surprises that could halt the flow of business down the road when the owner does depart.
It’s time for a conversation about business succession planning, even if you’re feeling guilt over not having tackled it yet. Contact our offices today to learn more and to set up your meeting. Contact us at info@lawesq.net.