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
1The statistics provided above have been derived from a variety of surveys of closely held business owners including: the PricewaterhouseCoopers 2007-2008 survey of nearly 1,500 closely held companies; the 2007 survey of 800 closely held businesses by the University of Connecticut School of Business Administration Survey; and the 2003 Arthur Andersen/Mass Mutual American Family Business Survey.
| Michael Diercks - Midwest |
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 Michael is the president of the Columbus office of Leadership Management Institute, an international leadership development firm, founded in 1966. LMI specializes in improving performance through their unique process. Michael leads individuals, teams and organizations through the unique Leadership Management Institute'sTM process that generates organizational, professional and personal growth. Michael's experience includes executive positions at General Motors, EDS, McQuay International, WLR Foods and RR Donnelley & Sons. Email:
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