Most Affluent Business Owners Lack Confidence in Valuing Their Business, Planning Exit Strategy
First Citizens Wealth's 'Beyond Wealth' study reveals significant gaps in business valuation confidence and exit planning among affluent business owners. Only 52% claim to know their business's exact worth, with 44% of those lacking confidence in their assessment. Despite 87% having some idea of their business value, merely 62% have conducted formal valuations. The study also shows that only 47% have an exit strategy, with 31% planning to transfer to family members and 19% considering selling to other business owners. While 85% of affluent business owners have professional financial advisors compared to 68% of non-business owners, only 33% feel well-prepared for business exit.
Lo studio 'Beyond Wealth' di First Citizens Wealth rivela significative lacune nella fiducia nella valutazione delle imprese e nella pianificazione dell'uscita tra i proprietari di aziende benestanti. Solo il 52% afferma di conoscere il valore esatto della propria attività, con il 44% di questi che non ha fiducia nella propria valutazione. Sebbene l'87% abbia un'idea del valore della propria azienda, solo il 62% ha effettuato valutazioni formali. Lo studio mostra inoltre che solo il 47% dispone di una strategia di uscita, con il 31% che prevede di trasferire l'azienda ai membri della famiglia e il 19% che considera di venderla ad altri imprenditori. Anche se l'85% dei proprietari di aziende benestanti ha consulenti finanziari professionali rispetto al 68% di chi non possiede un'azienda, solo il 33% si sente ben preparato per l'uscita dall'attività.
El estudio 'Beyond Wealth' de First Citizens Wealth revela brechas significativas en la confianza en la valoración de negocios y la planificación de salidas entre los propietarios de negocios adinerados. Solo el 52% afirma conocer el valor exacto de su negocio, y el 44% de estos carece de confianza en su evaluación. A pesar de que el 87% tiene alguna idea del valor de su negocio, solo el 62% ha realizado valoraciones formales. El estudio también muestra que solo el 47% tiene una estrategia de salida, con el 31% planeando transferir a familiares y el 19% considerando vender a otros propietarios de negocios. Aunque el 85% de los propietarios de negocios adinerados cuenta con asesores financieros profesionales en comparación con el 68% de los no propietarios de negocios, solo el 33% se siente bien preparado para la salida del negocio.
퍼스트 시티즌즈 웰스의 '비욘드 웰스' 연구는 부유한 사업주들 사이에서 사업 가치 평가 신뢰도와 퇴출 계획의 중요한 격차를 드러냅니다. 단 52%만이 자신의 사업의 정확한 가치를 알고 있다고 주장하며, 그 중 44%는 자신의 평가에 확신이 없습니다. 87%가 자신의 사업 가치에 대한 아이디어가 있지만, 정식 평가를 실시한 비율은 겨우 62%에 불과합니다. 이 연구는 또한 단 47%만이 퇴출 전략을 가지고 있으며, 그 중 31%는 가족에게 양도할 계획을 세우고 19%는 다른 사업주에게 매각하는 것을 고려하고 있음을 보여줍니다. 부유한 사업주 중 85%가 전문 재정 상담사를 두고 있는 반면, 비사업 소유자는 68%에 불과하며, 단 33%만이 사업 퇴출에 대해 잘 준비되었다고 느낍니다.
L'étude 'Beyond Wealth' de First Citizens Wealth révèle des lacunes significatives en matière de confiance dans l'évaluation des entreprises et de planification des sorties parmi les propriétaires d'entreprises fortunés. Seulement 52% affirment connaître la valeur exacte de leur entreprise, et 44% de ceux-ci n'ont pas confiance dans leur évaluation. Bien que 87% aient une idée de la valeur de leur entreprise, seulement 62% ont réalisé des évaluations formelles. L'étude montre également que seulement 47% ont une stratégie de sortie, avec 31% prévoyant de transférer à des membres de la famille et 19% envisageant de vendre à d'autres propriétaires d'entreprises. Alors que 85% des propriétaires d'entreprises fortunés ont des conseillers financiers professionnels, contre 68% des non-propriétaires d'entreprises, seulement 33% se sentent bien préparés pour la sortie de l'activité.
Die 'Beyond Wealth'-Studie von First Citizens Wealth zeigt erhebliche Lücken im Vertrauen in die Unternehmensbewertung und in die Exit-Planung unter wohlhabenden Unternehmensinhabern. Nur 52% geben an, den genauen Wert ihres Unternehmens zu kennen, wobei 44% von diesen kein Vertrauen in ihre Einschätzung haben. Obwohl 87% eine Vorstellung vom Wert ihres Unternehmens haben, haben lediglich 62% formelle Bewertungen durchgeführt. Die Studie zeigt auch, dass nur 47% über eine Exit-Strategie verfügen, wobei 31% planen, an Familienmitglieder zu übertragen, und 19% den Verkauf an andere Unternehmer in Betracht ziehen. Während 85% der wohlhabenden Unternehmer professionelle Finanzberater haben, sind es bei Nichtunternehmern nur 68%, und nur 33% fühlen sich gut auf den Unternehmensausstieg vorbereitet.
- 85% of affluent business owners have professional financial advisors
- 88% of affluent business owners have created financial plans
- 76% of formal valuations were conducted with professional advisors
- Only 52% of owners know their exact business worth
- 44% lack confidence in their business value assessment
- Only 47% have a business exit plan
- Only 33% feel well-prepared to exit their business
- 15% don't know how they will exit their business
Insights
The survey findings reveal concerning gaps in business succession planning among affluent business owners, with significant implications for wealth preservation and transfer. The data showing only
The disconnect between high financial advisor adoption (
The trend of family succession interest (
The study illuminates a significant disconnect in the affluent business owner segment, where despite having substantial investable assets (minimum
The high rate of professional financial advisor engagement (
- A bare majority (
52% ) of affluent business owners say they know exactly how much their business is worth. And a large share of those (44% ) aren't confident in that assessment. - Less than half of affluent business owners (
47% ) say they have a plan for exiting their business, while only a third (33% ) feel very prepared to exit. - One in five (
20% ) affluent business owners plan to leave their business in the next five years, with one third (37% ) planning to retain ownership for at least another decade.
The "Beyond Wealth" study surveyed affluent individuals across
"This latest installment of our Beyond Wealth study delivers compelling insights into how affluent business owners perceive business valuation and exit planning," said Michael Wilson, executive vice president and lead executive for First Citizens Wealth.
"Our findings show that these business owners clearly recognize the value of professional guidance when it comes to exiting their business. But many of these same business owners seem to be missing out on benefits of professional advice earlier on in their business ownership journey," Wilson added.
Business valuation
Nearly all affluent business owners (
Only three in five (
Still, only half of affluent business owners who know their business' worth feel very confident in the value assessment.
"Knowing the value of your business today is important because the opportunity to exit could arise unexpectedly and at any time," said Nerre Shuriah, senior director of wealth planning at First Citizens Bank.
"You could end up exiting your business on your timeline. On the other hand, a big life change or a surprise offer could have you exiting sooner than you anticipated," she continued. "Either way, having confidence in what your business is worth makes a huge difference in streamlining the exit process."
Business succession
Only about half (
The most likely exit strategies among survey respondents are selling or giving the business to a family member (
About half (
"We know that it can be difficult to zoom out from the day-to-day of running a business to develop an exit plan, especially if you're unsure of how or when the exit will happen," Shuriah said.
"Working with a professional business advisor can help you take a step back and evaluate your business from an outside perspective, so that you have a full understanding of your business to develop an informed exit plan that meets your end goals," she continued.
"And if those goals involve passing down your business to family members, a professional advisor can empower you to have those notoriously difficult money conversations with the next generation," Shuriah added.
Advisor Services
Affluent business owners recognize the importance of professional advisory services. They are significantly more likely to have a professional financial advisor (
"It seems contradictory that affluent business owners are more likely to have professional financial advisors and plans, yet most still are not very prepared to exit their business," said Wilson. "These findings highlight an opportunity for business owners to be proactive in preparing for the inevitable succession of their business, regardless of when it might happen."
For more insights from the Beyond Wealth study by First Citizens Wealth, download the report.
First Citizens Wealth empowers clients with a comprehensive set of services and solutions to help meet their unique and evolving needs. The team's holistic approach, goals-based strategy and personalized service help ensure clients can make smart decisions at every stage of their financial journey.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
About the Survey
1 The online survey was conducted among a sample of 1,000 Americans with greater than
Disclosures
First Citizens Wealth™ (FCW) is a marketing brand of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares are the entities through which FCW products are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. ("FCIS") , a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. and SVB Wealth LLC, all SEC registered investment advisers and affiliated entities. Insurance products are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products and services are offered by First-Citizens Bank & Trust Company, Member FDIC, and an Equal Housing Lender and SVB, a division of First-Citizens Bank & Trust Company.
MEDIA RELATIONS:
Lexa Losey
Lexa.Losey@firstcitizens.com
Liz Shapiro
Elizabeth.Shapiro@firstcitizens.com
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SOURCE First Citizens Bank
FAQ
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