Most Connecticut Business Owners Are Not Adequately Prepared To Transition Their Business

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According to survey results, sixty percent of Connecticut businesses that are under $30 million in annual revenue are owned by persons seeking to retire in the next five years.  However, only one single respondent has prepared an actual written plan to set forth how they will exit their business, and perhaps more importantly, how to maximize its transaction value. Based upon these results, business owners in Connecticut are not adequately prepared to effectively transition or sell their businesses.  This surprising finding, and other valuable insight, was uncovered by a collaboration between three Connecticut professional service firms that are seeking to help business owners and entrepreneurs in Connecticut better understand the process of exiting their businesses.

Marcum Accountants & Advisors, VR Business Sales – Mergers & Acquisitions, and the law firm of Zangari Cohn Cuthbertson have joined forces to establish and prepare an ongoing exit planning survey among Connecticut business owners. During the month of August 2016 the first survey was conducted through an internet based platform. The brief survey sought insight from business owners in matters such as their stress level when considering their exit, their confidence of being able to locate a successor, and the owners level of readiness to complete an exist. These results have now been quantified and the firms have released a report of their findings. Successive surveys and updated reports, which will include metrics for tracking the evolution of the participants’ preparedness, will be forthcoming on a scheduled basis.