ST. PAUL, Minn.--(BUSINESS WIRE)--More than sixty percent of small business owners have no plans for exiting their businesses nor are they working on one. Many of them are so consumed by running their businesses that they haven’t found time to start the planning process.
This finding from research recently conducted by Securian Financial Group shows that small business owners who may be counting on their companies to fund retirement or provide a source of retirement income may be in for a surprise. Five hundred small business owners were interviewed for the Securian study.
“One third of the business owners we talked to plan to leave their businesses in the next five years and 60 percent plan to exit in 10 years, but many of them have no exit plans in place,” said Andrew O’Brien, director, Client Solutions, Securian Financial Group. “With no exit plan, the small business owner not only risks the future of the firm but also its ability to generate income for the founder.”
Many owners have yet to find someone to run the business after they exit nor do they know how much their businesses are worth. Those who look for assistance with an exit plan say legal and financial expertise are most important. Many look for a team of experts.
“More than half of the people we talked to plan to sell their businesses, either to a partner, key employee or third party,” said O’Brien. “An exit plan helps the founder lay the ground work for a successful sale.”
Find more information about Securian’s small business owner research at securiannews.com.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation’s largest life insurance groups, it is the holding company parent of several companies.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York where products are issued by Securian Life Insurance Company, a New York authorized insurer. Both companies are headquartered in Saint Paul, MN and each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Product availability and features may vary by state.
DOFU – 02-2014