It can take years to create an exit for the right time,
at the right price, with qualified successors
December 09, 2014 – ST. PAUL, Minn.–(BUSINESS WIRE)–Small business owners pump everything they’ve got into their companies. They might assume their years of hard work and substantial investments will pay off when they’re ready to leave the business. But unless they’ve done the prep work, they may not enjoy the retirement they expected.
“Our research shows that 75 percent of small business owners are not ready for the day they cash out, largely because of the immediate challenges of running their companies,” said Andy O’Brien, director, Client Solutions, Securian Financial Group. “It can take several years to create an exit that will occur at the right time, for the right price, with qualified successors waiting in the wings.”
Most have no exit arrangements
- Securian’s Business Owners Exit Plan Study, conducted by the Gestalt, Inc. research firm, asked 500 small business owners about their plans and assumptions about exiting the business.
- One-third say the most important steps in developing an exit strategy are executing a buy-sell agreement and preparing the business for buyout (34%).
- A large segment (42%) thinks it takes less than two years.
- 24% have exit strategies in place. Of those without strategies, only 21% are actively working on one.
Opportunities for advisors
This lack of preparation provides opportunities for financial advisors. Securian has long provided the tools and expertise for advisors to create successful exit strategies for small business owners. It is the first corporate member of the BEI Network of Exit Planning Professionals, which is available to the nationwide Securian Financial Network of advisors.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation’s largest life insurance groups, it is the holding company parent of several companies. Insurance products are issued by Minnesota Life Insurance Company and Securian Life Insurance Company, a New York authorized insurer. Both are headquartered in Saint Paul, MN and each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Product availability and features may vary by state.