Start your succession planning NOW!7/3/2019
Family-owned businesses represent 64 percent of our country’s GDP. 40 percent of those companies will experience a change of ownership in the next 15 years and the unfortunate reality is that only 30 percent will transfer successfully. In fact, only 12 percent of today’s business will be viable past the third generation. Why are these statistics alarmingly low? One word, “PLANNING,” or a lack of it.
In a recent study it was found that only 43 percent of family-owned businesses have a succession plan in place and far fewer have funding in place to follow through with the plan. In many cases it takes 10 years or longer to identify a new owner and prepare them to be credit worthy, if financing is necessary, and a
Abraham Lincoln said that if he had six hours to cut down a tree he would spend
the first 4 hours sharpening his axe. It’s time to start sharpening your