One of the foundational concepts behind Pinnacle's business model is that there are far more businesses that need exit strategy planning advice than - perhaps - the entire population of advisors can competently serve. The statistics below are drawn from a few studies to illustrate this point. And, for advisors thinking about getting into this business, you will see - objectively - the size of this opportunity and draw your own conclusions as to what it can mean for your practice.
From Exiting Your Business, Protecting Your Wealth (Chapter 1 - Exiting is a Process, Not an Event, p. 26)
"With millions of Baby Boomer business owners seeking an exit strategy from their business, the demand for advice in this area is very high. However, the supply of trained advisors who can assist with this type of planning is disproportionately low. . .
. . . for example, we know that 8.4 million [Baby Boomer owned] businesses in the United States will be changing hands in the next 10 to 15 years. Therefore, we can make some projections about the capacity of advisory services required to fulfill this need that will illustrate this supply and demand point.
An exit strategy is a complex planning engagement. Let's say that 50 to 100 hours of work is a good estimate of the time needed to formulate and execute an exit strategy plan. By multiplying the number of businesses that will transition by the estimated 50 to 100 hours of advisory work, we conclude that 420 million to 840 million hours of advisory work will be required in the next 10 to 15 years.
Many types of advisors are available to assist business owners with their exit strategy planning. There are an estimated 700,000 such advisors in the United States today: legal advisors, financial advisors, insurance advisors, accountants, business consultants, business brokers, and merger and acquisitions professionals."
This Chapter section goes on to explain to business owners (and advisors) that a business owner needs to be pro-active and find advisors who are trained in this area so that their illiquid business wealth can be protected.
Does this look like an opportunity for you to grow your advisory practice?
Do these statistics resolve any lingering doubts about whether or not the marketplace of businesses owners is sufficient to meet the growth needs of your practice?
If so, take another look at Pinnacle's training and Workshops. We are making an impact in this large demographic of Baby Boomer business owners. Maybe it's time for you to decide that adding exit strategy planning to your practice is the next step in growing your business and assisting your business owner clients and prospects.
This is a practice where everyone wins. The business owner gets a plan to liberate themselves from their businesses (while protecting their wealth) and the advisor gets paid and achieves the trusted advisor status with the client - positioning themselves to provide other advice and service.
The key to tapping into this market is first awareness - understanding the needs of this marketplace - and then taking the first step.
So remember, planning is the key to any successful business exit because a proactive approach to an Exit Strategy is the only approach to a successful Exit Strategy.
© John M. Leonetti
Specializing in Business Exit Strategies, John M. Leonetti, Esq., M.S. Finance, CM&AA founded Pinnacle Equity Solutions to provide exit strategy planning services to business owners as well as education and training programs for professional advisors. To learn more about John's Exit Strategy Services and his recently published book, "Exiting Your Business, Protecting Your Wealth", visit ExitingYourBusiness.com