If you’re a financial advisor you’ve likely spent ample time with clients that are focused on the more liquid portions of their portfolio… and ignore the elephant in the room. By ignoring their operating […]
Survey: What's the
State of Owner
(Exit) Readiness in DC?
In partnership with the Exit Planning Institute, we’re conducting a micro-market survey to help understand where owner’s are in their journey, and what specific issues impact our unique market.
About the Survey
While the Exit Planning Institute has conducted a similar survey throughout a series of “micro-markets” across the U.S., we are all well aware of the uniqueness of the greater DC market. Our goal is to start to quantify some of that nuance.
Why This Matters
There are roughly six million operating privately held companies in the US. They represent approximately $30 trillion in sales. According to US census data, 63% of these are owned by Baby Boomers who now range from 53-71 years old with the average age being 62. Although Baby Boomers are holding on to their businesses for a longer period of time, all Boomers will reach the age of 70 or older within 17 years. That represents nearly 4 million Baby Boomer businesses poised to transition. Assuming a business valuation of 50% of sales, reasonable by most standards, that further represents $10 trillion of wealth poised to transition.
Unlocking this wealth in the business is or should be of paramount importance. Why? Study after study indicates that, for most entrepreneurs, 80%+ of their net worth is made up by the business itself. Given the significance of this asset in the owner’s wealth portfolio, the ability to monetize this wealth at some point will have a significant impact on the owner’s financial security and lifestyle once they exit the business.
Once complete, we’ll collate the data into a Whitepaper that we’ll share with the community. Our goal is two fold:
- Help business owners see where they stand in the spectrum of preparedness regarding an ownership transition
- Assist advisors in guiding and prioritizing conversations with clients through actionable data
Our goal is to close the survey by the beginning of December, and distribute results in early 4Q18.
Get a Sample
To get a better idea about this project and the expected outcome, grab a copy of the latest version completed in the Nashville market. Not DC – and that’s the point! – but gives a good idea as to our goal.
How can Quantive Help?
We’d love to understand your unique situation and discuss how we might be able to help. Get in touch for a confidential discussion regarding your valuation or M&A requirements.
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