Owners of privately held businesses are approaching the future of their companies and personal wealth differently than many from previous generations.
Rather than simply retiring, a vast majority are preparing to monetise concentrated equity positions in their businesses, often with ambitions that extend into fresh entrepreneurial endeavours, according to new research from Raymond James.
The firm’s survey of more than 500 owners of US private firms found that 88% of respondents plan to transition some or all of their financial interest in their business within the next ten years. However, few are viewing this as an exit from work altogether.
Of those planning to step back, a notable portion intend to remain active in their current operations even after reducing their ownership with around one third expecting to continue working at their existing company, while 30% said they aim to invest in or acquire another business once their financial stake shifts hands.
The findings suggest a broader trend among seasoned business leaders who are prioritising unlocking concentrated wealth by turning private equity into deployable capital rather than using a sale as a gateway to traditional retirement. Meanwhile, only 20% said they plan to retire after transitioning out of their business.
Succession planning is also emerging as a priority with a significant 35% of business owners stating that they expect to pass their business on to a family member, while 23% intend to transfer ownership to a non-family internal manager.
“The time to plan is now, especially for those business owners whose transition timeline is within the next five years,” said Bonnie Harper, vice president, Private Wealth Consulting at Raymond James. “It’s important to have a personal wealth plan that ensures the effort you’ve invested in your business becomes the foundation for the life you envision."
What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy.
The Boston deal is set to push the PE-backed consolidator past $187 billion amid a broad RIA M&A slowdown and a potential shift in its ownership.
Advisors with clients who own second homes in New York City face fresh uncertainty as the city seeks a stay and plans an appeal.
Meanwhile, a deal in the Midwest gives NorthRock Partners a new office in Wisconsin, while two teams join OnePoint BFG in Georgia and Atlanta.
These challenges are “changing the economics we see retirement savers face,” said Christopher Ceder of Goldman Sachs Asset Management
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
