There are 12 million baby boomer business owners in the US … and many are about to retire. Economists estimate trillions of dollars will change hands in the process.
If Arizona’s share of those baby boomer businesses is the same as the state’s share of total businesses, there are nearly 230,000 Arizona businesses that will transition in the next decade or two.
That translates to two out of three Arizona businesses posting their “Under New Management” sign.
How Will These Businesses Transition?
The range of possibilities for a baby boomer to transition their business is limited:
- They will sell their business to a competitor or other third party
- They will transition their business to a family member or members
- They will transfer their business to a key employee, key employees or even an ESOP
- They will transition their business to a spouse or business partner due to illness, death or disability
- They will fail to transition their business and simply go out of business
Most of these business owners have done some level of estate planning. Very few, unfortunately, have worked through their business exit strategy.
If you think about it, it is truly incredible. Their business and personal lives are so intertwined that you could not possibly do one without the other.
Will You Have Time Tomorrow?
If you are a baby boomer business owner, it is fairly certain that you think about your exit strategy from time-to-time.
You may put it out of your mind due to being too busy running your business, be unsure of exactly what you want to do and how or you simply put it off for another day. There will always be time to plan for your business transition later, right?
Maybe there will be time … and maybe there won’t. None of us are guaranteed that tomorrow will be here for us to transition our business they way we want to exit.
That’s even more true for maximizing your value. The worst time to sell anything is when you have to sell it now.
Your Business Estate Plan
You don’t need to be ready to sell your business this year or even this decade to plan your transition.
In developing Your Business Estate Plan, the process to transition your business in Phase II and III can be deferred until you are ready to begin your exit.
But the time to do Phase I is now.
This process enables you to prepare your business for sale externally or internally and maximize your value.
It also enables your spouse or business partners to execute your transition plans if you did suffer an untimely illness, disability or death.
Click on the image to download your free copy of Your Business Estate Plan.
When you are ready to think about transitioning your business, contact us for a free consultation. Because you never know when you’ll be out of tomorrows.
Founder & Chief Executive Officer
Alex has advised hundreds of small businesses on strategic planning, business development and all areas of corporate finance, specializing in helping business owners sell their business or raise capital for growth and acquisition. In his work with business owners, he has found many have done very little planning for an eventual transition away from the day to day operations or out of the business altogether.
As a native Arizonan, his passion is working with and advising local companies and helping business owners gain comfort in their eventual retirement and have the knowledge that when the time comes to sell the business they have a well designed plan of action already in hand, a good idea of what that business is worth, and who the next owner will be. He founded Arizona Business Transitions to assist business owners plan for an exit or transition, even if that transition is not on the horizon.
Alex attended Brophy College Preparatory and graduated from DePauw University – Economics and Management. Member of the Tempe Diablos Charities. He lives in Tempe with his wife Trish and two boys, 10 year old Carter and 7 year old Aidan.