Facts on Exit Planning

• Almost 50% have no plan to transfer ownership, management and control, and the percentage is even higher for companies that have been in business for less than 20 years
• Nearly 60% of closely held companies have failed to gauge the potential tax exposure upon a transfer of ownership
• 25% are due to change hands within the next 5 years
• About 90% of owners of closely held companies would like to transfer ownership, management and control of their companies to family or non-family key employees. Less than 50% manage to do so
• Only 33% have defined criteria for hiring and promoting family members who want to take an active role in the business
• Over 33% of closely held companies have no procedures in place for dealing with disputes between family member owners