Is $10,000,000,000,000 Enough?

Ten Trillion Dollars. Did I get the zeros right?

This is not another Bill proposed by Joey and his minions. Ten trillion. Or the sunny side of $13 trillion has been calculated by industry experts...a staggering amount of money transitioning from business owners as they exit their companies. The exact number is debatable, but an estimated 2,100 individuals are leaving - every day - and it's happening now. Who's paying attention?

Baby-boomer business owners are aging out and they are leaving in record numbers - either vertically or horizontally. But who's helping them plan and protect what they worked so hard to build. Unknown. There are the usual suspects: insurance advisors, financial planners, exit planners, CPAs, attorneys, P&C agencies, banks, coaches, M&A firms, etc. but few have been effective. Or they don't talk about their success.

The last 20 months have been an absolute train wreck. Sadly, there has been little change in behavior. I've looked for the data but uncovered nothing notable. Nor do I see it highlighted in trade magazines, social media, LinkedIn, etc. I have noticed more and more professionals training for the task, but how many have successfully executed. And where are the hoards of business owners raising their hands for help. Again, M.I.A.

Maybe we need more assets deployed by the companies who "live" in the business owner space to raise awareness, educate personnel and clients alike. They spend money and a ton of capital is committed to naming sports venues...there's several in my home state of Pennsylvania. That is not a solution. A name on a building will never drive engagement. Change behavior. I don't believe one business owner ever looked up at the Wells Fargo Center in Philadelphia and said to themselves, "I need to reach out to Wells to help me with the biggest decision of my life. I'm sure they can help me plan and protect that asset. Just look at that sign. It's big! They must know how to help. I'll call tomorrow right after the Flyer's game."

What business owners don't need is more information on products or more advice on investing. Technology has turned up the volume ("up to eleven") on these two topics. So let's skip the traditional white papers, charts, brochures, robo investing, couples walking on a tropical beach in white pants... Every company has great product and a mechanism to implement plans. Every company has experienced planners. That's not the answer and not the impediment. Advanced market planning can be complicated; the only thing an individual needs to know (and embrace) is, "I have a big problem and you can help me fix it."

My company and efforts (over more than 27 years) have been equally frustrating. Oh, there is an anecdotal success story we hear but nothing notable; shouldn't there be a meteoric rise in business owner engagement in 2021? Sadly, what we all hear frequently are the unfortunate outcomes. A company closes unexpectedly, an unexpected illness, the farm has to be sold to pay estate tax, a sibling is left in charge and runs the company into the ground, family members stop talking to each other...

When an owner leaves, many are affected...the family, employees, vendors, community, tax base, even the advisors currently working with them. For example, a P&C firm has an well established book of business and healthy recurring revenue. If that agency has not engaged with their clients to implement the critical steps necessary to identify and mitigate risk and something happens to the business, what happens to that account? Or what if the company is sold, unbeknownst to the current (P&C) firm and the new owners have their own advisors. How about a bank? The owner has a liquidity event - his/her current institution is the last to find out - and those assets walk right out the door. Common events? I don't know. Unreasonable assumptions? Doubtful.

If Covid wasn't enough, we now have an hungry administration in Washington. They like to spend money. They're eager to print money. But that's not enough. They know where to look for more money and not shy about their intentions. Will any of this change the current level of business owner inaction? Or will these baby boomers simply exit sooner? In any case, the problem is persistent.

If you're an experienced professional (or organization) that has solved this conundrum, I would welcome the opportunity to listen, learn and eagerly share that knowledge with my network. Business owners need help and they need it now.

Facts are stubborn things.