Business owner wealth transferring over next 10 years provides an opportunity & challenge for financial services industry.

I came across this article  recently on It refers to US business owners but the situation is similar in Canada. It certainly echos the transitions I see coming with Canadian business owners.

From author Michael Carter, CEO and founder of BizEquity:

“According to Orion Advisor Services, $12 trillion of business owner wealth is expected to transfer during the next ten years in the United States. This makes it one of the most significant opportunities for the financial services industry in a generation -- but also one of the most challenging.”

“The next 10 years are a race and a challenge for the financial services industry that has never been seen before.  Business owner wealth transfer is a generational opportunity where advisors and firms will be made or lost. Those who win will be able to build their product and services suite with the business owner in mind by leveraging technology and thinking like the entrepreneurs they hope to serve. Financial services firms and their advisors can’t take the same “butter knife” they use for the wealthy affluent as they do for entrepreneurs. The winners of the financial planning “knife fight” will be those that understand the value of the client and their actual business through technology and customized products.

How the business owner is different  than the corporate executive:

“Corporate executives who make the majority of their wealth through current income are fundamentally different than those whose main wealth will one day come from the successful transition or sale of their company. For one, a business owner's current income is usually much more modest. They tend to be highly tax-efficient personally, but typically are under-balanced with their wealth management and planning based upon the concentration of their wealth tied to private shares in one industry (their own).”

Here are some of  the opportunities for financial advisors and service providers over the next 10 years as business owners transition out of their companies:

  • Succession Planning

  • Exit  Planning

  • Wealth Management

  • Financial Planning

  • Insurance

Michael Carter continues in his article:

“The wealth and asset management industries are beginning to appreciate the business owner market due to the sheer size of the assets under management (AUM) opportunity. In the next ten years, over 10 million businesses will be transitioning and will need proper succession and exit planning as part of their wealth management and financial planning process. (Source: CNBC/FPA study.)

The challenge for financial advisors and their business owner clients and prospects is the fact that 78 percent of business owners think they will fund their retirement with the sale of their business. This presents a significant planning opportunity and challenge. The advanced advisor will prospect and engage with business owners for the successful transition of their business and embrace holistic planning that factors in the value of their private shares, not just their liquid assets or those in the market.”


Read the whole article by Michael Carter, Founder and CEO of BizEquity; published  on March 7, 2019

Taking care of business owners interests is at the heart of Strategic Succession. We work with owners and their advisors to optimize the business so when it is time to sell, owners can maximize their return. Our objective is to create customized solutions with benefits for business owners to support their goals including wealth preservation and tax savings.

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Headwinds business owners will face as it comes time to sell.

Business owners: The easiest way to increase net worth.

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