Are you the owner of a family business? If so, you are one of over 33 million family-owned businesses that make up the backbone of the US economy. Most likely you have worked hard to build your business up, allowing for a successful life for you and your family. Do you have a transition plan in place for your retirement, or if something were to happen to you and you could no longer manage the business? Do your children, partners or employees have the desire/skillset to take over the company? Do you wonder what your business may be worth? Some notable statistics:
- Over 75% of US family and small business owners are planning to retire/sell their businesses over the next 10 years.
- 49% of business owners have never had their business valued. Many are surprised to learn what they have built is actually worth much more than they thought.
- 67% of business owners do not have a formal transition plan, either for retirement or unexpected death; even fewer have considered a plan to mitigate taxes prior to selling.
- Many families are not prepared for a “liquidity event” that selling a business brings, from tax considerations, to estate planning to meeting daily living needs.
- Only 33% of family-owned businesses transfer to the next generation; only 15% make the transition to the 3rd generation.
Don’t worry—you are not alone! The Krause Collective is here to help. We are a full-service financial services team that offers individual investors and business owners the resources needed to help you meet your financial goals. For more information, take a look at Tips for Selling your Business at https://docs.rbcwealthmanagement.com/us/3767-tips-for-selling-your-business.pdf. If you would like to get the conversation started about taking the next steps to sell your business, please give us a call at 425-712-7309 or visit our website at krausecollective.com to learn how we can help.