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."
Five low-cost index ETFs to anchor Trump Accounts as advisors weigh options against 529 and UTMA plans for clients
A bipartisan proposal aimed at aligning advisor compensation rules with modern business structures is headed to the full House.
Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.
“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson
Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
