ATLANTA--(BUSINESS WIRE)--White Horse Advisors, LLC, an independently-owned provider of financial advisory services to owners of closely-held businesses and retirement plan sponsors, announces the results of its 2008 Survey of Closely-Held Business Owners. The survey, titled “America’s Entrepreneurialist Generation: Exit Planning and the Baby Boomer Age Wave,” was conducted in cooperation with Vistage International using a random selection of business owners across the U.S. A total of 58 groups participated in the study, representing 444 survey respondents. Full survey results may be viewed at www.exitplanningresearch.com.
“The implications of these results are far reaching. We face a tsunami wave of baby boomers selling, closing or passing along their businesses in the next 10 to 20 years,” said Patrick Ungashick, founding partner of White Horse Advisors. “Closely-held businesses account for nearly half of private sector payroll and approximately 80 percent of net new private sector jobs in the last 10 years. Therefore, we can expect this trend to impact not only owners, employees and families, but the economy as a whole.”
The survey shows that business owners overwhelmingly recognize the importance of an exit strategy, but in nearly every important area they are not prepared for their inevitable exit. On the surface, it appears that the lack of preparation may be attributed to the belief that the need to plan for exit can wait until only a few years before the target date. However, even the oldest owners surveyed stated they are unprepared in most areas. So the true culprit appears to be procrastination and uncertainty regarding the proper steps to take. The inevitable wave of baby boomer business owners seeking to sell their businesses may face a supply and demand problem – a larger number of owners seeking to exit than the supply of buyers.
Summary results of the survey include:
The survey was administered between October 2007 and February 2008 by Atlanta-based CMI, a full-service marketing research company that provides clients with strategic and tactical marketing insights. Significance testing is conducted at the 95% confidence level. At this confidence level, the data from 444 surveys has a precision level of +/-4.65%.
About White Horse Advisors
White Horse Advisors, LLC is an innovative, independently-owned business that provides fee-based financial and advisory services through Securian Financial Services Inc. to the owners of closely-held businesses and retirement plan sponsors. Our professionals work in teams and are committed to groundbreaking solutions, trusted financial advice and leading edge strategies through a process integrated with the client’s tax, legal and other advisors. Objectivity, creativity and experience help promote financial peace of mind to our corporate and individual clients.