3 Key Business Succession and Exit Planning Messages
According to an August 2016 survey by PWC – The Missing Middle: Bridging the Strategy Gap in US Family Firms – nearly 44% of those surveyed say that succession planning will be a “challenge” within 5 years and just 23% have a robust, documented succession plan in place.
Some interesting changes have also occurred in terms of the exit option preferences of the owners. 41% plan to pass the business on to the next generation (down from 52 % in 2012) and 30% wish to sell to an outside party (up dramatically from 12% in 2012).
Overall, this highlights three key messages:
- Start now – good strategy takes time.
- Sale/Investor/Exit readiness is smart for all business owners.
- The missing middle is the gap between current reality and future goals/outcomes – it does not close without attention.