Did the Pandemic Speed Up Your Business Succession Plan?

October 22, 2021

  • 66% of business owners stated that the Pandemic sped up any plans they had to sell their business
  • Only 1 in 5 owners surveyed, stated that they met with their wealth manager about the process
  • We are here to help with our proprietary tool, The Buyout Barometer®

When 2019 ended and 2020 started, no one had any idea of what was to come. The December 2019 Fed meeting notes tell a story of the lowest unemployment rate (3.5%) in 50 years and a steady Federal Funds Rate of 1.75% to sustain the economy. Nearly two years later, we know none of this played out. Nearly 100,000 business failed during the first year of the pandemic according to the U.S. Central Bank[1], far less than initially expected, but the effects may still be looming. According to a recent survey done by Clarfield I Citizens Private Wealth (CCPW)[2] of 150 high and ultra-high-net-worth business owners, the Pandemic may have forever changed the course of their businesses. Close to two-thirds (66%) of the 150 business owners surveyed, stated that the pandemic significantly sped up any plans they had to sell their business. What may be more telling, 50% directly listed the pandemic as their reason for selling. Only one in five of those owners surveyed stated that they brought in or received input from their wealth manager. Selling a business can take years, and we are on your team to ensure that when everything is said and done, you walk away feeling confident about what is next. Our years of experience tell us that with each sale of a business, a lot of questions can pop up:

  • What will your cash flow needs be?
  • Will you be making any major purchases after the sale?
  • Do you want to sell 100% of the company and walk away?
  • How to structure buyout along with amounts

We help our clients navigate the often times murky waters, sell their business and the successfully transition into retirement. We do this by focusing on two major factors:

  1. Readying your business for transition
  2. Preparing you, and your family for life after the sale

Our objective is to help you understand what your business is worth today, and what it needs to be worth to meet your goals. We created The Buyout Barometer® for this reason, a proprietary tool that assesses if you sell your business today, are you able to pursue a successful retirement.   Buyout Barometer Image

                *Images are for representative purposes only and are not representative of any specific situation.

  Our experienced team can provide ideas on how to close the gap and help you achieve a successful retirement. We work with our clients on their total financial picture and specialize in helping them successfully transition to, and through retirement. If you are thinking about the succession plan for your business, or already starting to go through the process, talk with us today and we can help you maximize the value of your business and prepare for the sale. [1] https://www.reuters.com/business/pandemic-destroyed-fewer-us-firms-than-feared-fed-study-shows-2021-04-16/ [2] https://clarfelduat.entech.com/Content/assets/pdfs/Succession_Survey_Executive_Summary.pdf  


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