Are business owners in the United States ready to transition their businesses?
With hundreds of thousands of businesses in the United States, employing over 130 million people, planning for the future of a business is a critical step for a business owner especially if that owner wants to exit their business in the next 5-10 years.
EPI has been researching owner readiness for 10 years in regions such as Los Angeles, Colorado, and Minnesota, as well as 10 other markets with large percentages of entrepreneurial-driven businesses.
Now we’re ready to look at this nationally for the first time since 2013. Exit Planning Institute is launching the first National State of Owner Readiness™ Research in 10 years!
What is The State of Owner Readiness Research?
The State of Owner Readiness Report is an in-depth research report featuring key insights collected from business owners across the country to determine their readiness to exit their business.
This year we will ask business owners about their transition teams, business exit timelines, and the importance of a transition strategy. The data in the report will highlight the importance of educating business owners about exit options. This report will also measure the impact of the exit planning advisory community and how exit planning advisors play a crucial role in exit readiness.
As the Certified Exit Planning Advisor® (CEPA) community continues to grow, the State of Owner Readiness Report will survey the impact these advisors have had on their owner clients before, during, and after a business transition. After reading the report, professional advisors can apply the results to their practice and utilize the valuable information about emerging client markets.
“Failure to provide for the continuity of a business impacts not only an owner’s personal wealth but also the future of all other stakeholders who depend on its successful transition,” says Scott Snider, President of the Exit Planning Institute.
The Evolution of Exit Planning as Seen Through Owner Readiness
Since the launch of the 2013 National State of Owner Readiness Research, the Exit Planning Institute, and our community of Certified Exit Planning Advisors, have grown immensely. The exit advisory community is growing. It is an evolving cross-functional profession including core and functional advisors across multiple disciplines and with varying expertise.
This profession is driven by the rapidly approaching baby boomer generation that is more immediately in search of harvesting the value of their company. This group is followed by the multiple generations of entrepreneurs who continue to build and grow their companies with an eventual, hopefully planned, and significant, exit in mind. The professional advisor community can help business owners change their outcomes.
How has Owner Readiness Changed in the Past 10 Years?
According to our 2013 National State of Owner Readiness Report:
- 76% of business owners in 2013 planned to transition in the next 10 years.
- Only 4% of owners in 2013 had a formal written life after business plan.
- 83% of owners in 2013 did not have a documented business transition plan.
How do you think the business owners of 2023 compare? As we survey business owners across the country, we will have a better understanding of their exit strategy, readiness to transition to their next act after leaving their business, and what advisors serve these owners on their exit planning teams.
Scott Snider shares, “This study is coming at a time when many baby boomers and Gen Xers are considering how to maximize the value of their businesses prior to exit.”
The National State of Owner Readiness Survey will assess:
- Specific trends of both successful and unsuccessful business transitions
- Factors that impact the valuation of companies prior to and following the transition to new ownership
- Insights that current owners can use to enhance their exit strategy.
- Impact of COVID-19 on owner readiness
- Differences in national owner readiness over the last 10 years
The State of the Institute Address
The survey will culminate in a National State of Owner Readiness Report, which will be unveiled at our State of the Institute Address in February 2024. Findings will compare national results to the regional surveys EPI has conducted over the last decade as well as the initial National State of Owner Readiness Report in 2013. Most importantly, the report will identify actionable initiatives that can impact owner readiness for exit and improve the probability of a successful transition, regardless of when that time comes or the circumstances under which it is triggered.
Scott Snider will also share a first look at advancements, exit planning market insights, the future for EPI, forecasting 2024 and our 3-year vision, and trends and topics for CEPAs during this State of the Institute Address.
Register for this webinar here.
How to be a Part of This National Research Effort
Are you a business owner in the United States? Do you know a business owner who is looking to exit their business? Are you an advisor to business owners? We are looking for owners in every state to complete our short 15-minute survey and be a part of the 2023 State of Owner Readiness Report.
Business owners are encouraged to participate in this proprietary study. No personal contact information is collected, and all individual responses are anonymous and confidential. Go to www.OwnerReadinessResearch.com to participate in the 2023 National State of Owner Readiness™ Survey.
