{"id":561021,"date":"2021-01-20T12:51:48","date_gmt":"2021-01-20T17:51:48","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/ownership-transition-survey-results-on-feedback-and-answers-from-family-owned-businesses\/"},"modified":"2022-01-31T12:41:52","modified_gmt":"2022-01-31T17:41:52","slug":"ownership-transition-survey-results-on-feedback-and-answers-from-family-owned-businesses","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/ownership-transition-survey-results-on-feedback-and-answers-from-family-owned-businesses\/","title":{"rendered":"Ownership Transition Survey Results on feedback and answers from family-owned businesses"},"content":{"rendered":"
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Mass Mutual Life Insurance produced an ownership transition survey back about a decade ago.\u00a0 The survey results were based on feedback and answers from family-owned businesses.\u00a0 It produced some very interesting results, and is worth examining even today.\u00a0 While the survey at this point is quite outdated in terms of the timeline, there are still many valuable nuggets of information to be gleaned from it.\u00a0 Let\u2019s dive in and take a closer look at the numbers and what they can tell us for 2021 and beyond.<\/p>\n

While the Mass Mutual Life Insurance ownership transition survey had a range of important points, the one that leaps right off the page is the fact that a whopping 80% of family-owned businesses are still being controlled by their founders.\u00a0 A large percentage of those founders are Baby Boomers who will have little choice but to retire in the next few years.<\/p>\n

The survey indicated that 55% of CEOs over the age of 61 or older have yet to choose a successor.\u00a0 This fact serves to emphasize the fact that a \u201cretirement wave\u201d will hit family-owned businesses, and this will lead to some interesting shifts and opportunities.\u00a0 And while the survey indicated that 13% of CEOs state they will never retire, the reality of the situation is that ownership will eventually change hands.\u00a0 Business brokers can expect to see an unprecedented wave of interest in their services.\u00a0 Additionally, prospective buyers will also have a highly unique opportunity to buy established businesses.<\/p>\n

The survey also indicated that 30% of family-owned businesses will be changing leadership within the next five years.\u00a0 Of course, with that change of leadership, many possibilities open up, including the possibility of selling.\u00a0 However, it is important to note that while there will be a \u201cretirement wave\u201d amongst the Baby Boomers, not all businesses currently owned by Baby Boomers will be placed on the market.<\/p>\n

The survey noted that 90% of businesses currently plan on remaining family-owned, and 85% of businesses plan on having their next CEO be a family member.\u00a0 However, it is important to keep in mind that even if these numbers were to hold true, that means at least 10% of businesses will be up for sale.<\/p>\n

It is likely that this number is far higher now than when the survey was conducted due to the aging nature of the Baby Boomer population and owners looking to sell because of pandemic related issues.\u00a0 Simply stated, there will be no shortage of businesses for sale in 2021 and beyond.<\/p>\n

Another important aspect of the survey to consider is the fact that family-owned businesses are not prepared to sell.\u00a0 According to the survey, 20% of family-owned businesses have not completed any form of estate planning, and 55% of family owners do not have any formal company valuation for estate tax estimates.\u00a0 Combine these statistics with the fact that 60% of businesses do have a written strategic plan, and it becomes clear that family-owned businesses, especially those considering selling in the future, are most definitely in need of professional assistance.\u00a0 Many family-owned businesses are ill prepared for the future and have a range of vulnerabilities.\u00a0 Business brokers and M&A advisors are uniquely positioned to provide those services.<\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

sabthai\/BigStock.com<\/a><\/p>\n

The post Ownership Transition Survey Results on feedback and answers from family-owned businesses<\/a> appeared first on Deal Studio – Automate, accelerate and elevate your deal making<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Mass Mutual Life Insurance produced an ownership transition survey back about a decade ago.\u00a0 The survey results were based on feedback and answers from family-owned businesses.\u00a0 It produced some very interesting results, and is worth examining even today.\u00a0 While the survey at this point is quite outdated in terms of the timeline, there are still […]<\/p>\n","protected":false},"author":2,"featured_media":561023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-561021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller-articles"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=561021"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/561023"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=561021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=561021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=561021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}