Business Owners Need An Exit Strategy

America’s largest wealth transfer yet is upon us as the baby boom generation started turning 65 this year. Most business owners within the group of baby boomers are not prepared for how they will be transferring their business at retirement. Many wait until the last minute to determine the value of the business and this is just one example of how business owners do not have an exit strategy in place.

Business owners should make an exit plan like they would make a will. Advisors recommend that business owners work with tax, legal, and exit planning specialists or get a mentor to ensure that you work on your exit plan every month. When the baby boomers are ready to sell their businesses, there may not be enough buyers, so it is important to find assets within your business that are transferable.

See Barbara Taylor, Are Baby Boomers Ready to Exit Their Businesses?, New York Times, Feb. 10, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.