According to data from the U.S. Census Bureau, in 2012, there are 27.6 million businesses closely held in the United States. Business ownership and entrepreneurship are critical drivers of legacy creation as well as significant wealth, but it becomes even more important for the individual to approach estate planning from their personal perspective as well their business.
Owners of closely held businesses should commit to succession planning and looking ahead for exit strategies as well as estate planning as well. Up to 80% of business owners, according to research conducted by the Family Business Institute, indicated that they will be able to pass their company on to the next generation.
However, business succession statistics actually show that there is a decrease in business survival. Up to 64% of business owners in 2015, did not have any business succession plan at all, putting their family’s greatest source of security and wealth at risk. You need to consult with an experienced business succession planning attorney as soon as possible to identify all of the opportunities to minimize your risk and this includes looking at succession planning and exit strategies as well.