Succession planning: Survey and events
by Terence ShepherdThere is an impending crisis being driven by the aging of the baby boomers. Within the next 10 years, about two of every three small to medium-sized enterprises will be transferred as older owners look to cash out. In addition, many non-owners will be leaving the workforce.
Who will be around to buy the businesses? Who will be around to operate these businesses both leading up to and after a sale?
This exodus will put tremendous pressure on finding enough willing buyers and enough qualified employees for all the businesses that will be in the marketplace. This, in turn, will create downward pressure on selling prices.
For many small and medium-sized business owners, a significant portion of their wealth is often tied up in the value of their businesses. And with this impending decrease in business value, many business owners’ plans for their ‘retirement’ years will sadly not be fulfilled. Will businesses simply be forced to liquidate and close down? The downside of lack of planning is undeniable; the associated risk of business closure and a loss of jobs can be the resulting legacy.
There are many unanswered questions. We are trying to better understand the severity of the hurdles and challenges you will soon be facing in order to identify potential patterns that lead a business transition to either a successful outcome or to one of failure. With that in mind, we would greatly appreciate a few minutes of your time to participate in our online survey.
To take the succession planning survey, click here.
Please note: Enter code A10 when asked for an ID code. The survey will take approximately 5 minutes. If there are enough responses, we plan to prepare a report on the data gathered so our readers can benchmark with area businesses.
Questions to consider
• Have you prepared a transition or succession plan?
• How important will the proceeds from a transition be to financing your retirement?
• How important is it for you to pass your business on to family or employees?
• If you sell your business, do you know how to minimize your taxes?
• What steps do you need to take now to maximize your business’ value to a potential buyer?
• Do you plan to remain with your company after it is sold?
• Do you know right now how much money your company is worth? How?
Join us for seminars that address these and other related questions
When: Thursday, Sept. 27, 2007, from 7:30 to 9 a.m. and Friday, Oct. 12, 2007, from 7:30 to 9 a.m.
Continental breakfast will be served.
Where: Plymouth County Business conference room
225 Water Street, Plymouth
Sponsors: Sovereign Bank, ROCG Shepherd & Goldstein Consulting Group LLC, Delta Capital Group, Plymouth County Business magazine.
Register: Call (508) 833-3811; please specify which session you’d like to attend. RSVP for first seminar by September 26
Cost: No charge
Terence Shepherd Terence J. Shepherd, CPA, MST, is Lead Partner for ROCG – Shepherd & Goldstein Consulting Group LLC. ROCG – Shepherd & Goldstein is an international consulting company to small and medium sized closely-held/family owned businesses, specializing in business transition. He is also Managing Partner of Shepherd & Goldstein LLP, business consultants and certified public accountants. Shepherd is a regular presenter of business development and customer service strategies and is the author of numerous articles focusing on finance, accounting and business issues. 
