business continuation - Principal Financial Group

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transition out of their businesses — preparing written plans, ... Here's what the 2015 Principal Financial Group® Bus
BUSINESS OWNERS:

BUSINESS CONTINUATION Business owners have a lot to consider when planning to successfully transition out of their businesses — preparing written plans, determining the value of their businesses and funding buy-sell agreements. Here’s what the 2015 Principal Financial Group® Business Owner Survey found.

DID YOU KNOW?

OVER A QUARTER OF BUSINESS OWNERS

26%

DON’T EXPECT TO RETIRE. EVER.

20%

PL AN TO RETIRE WITHIN THE NEXT FIVE YEARS

59%

of owners

THE BASICS FORMAL BUSINESS CONTINUATION PLANS

DON’T HAVE

A WRIT TEN BUSINESS CONTINUATION PL AN for death, disability or retirement.

YET,

PLAN REVIEW

A WRITTEN BUY-SELL AGREEMENT helps

82%

create an action plan — for an unexpected or planned exit.

ABOUT THEIR EXIT STRATEGY.

GOOD NEWS! Of the owners with written plans, more than half have had them reviewed in the past two years.

are either

SOMEWHATOR VERY CONFIDENT

52% WITH PLANS HAD REVIEWS IN THE PAST TWO YEARS.

FUNDING OPTIONS FOR WRITTEN PLANS

THE TOP THREE FUNDING VEHICLES for owners who have written plans in place are:

49%

44%

BUSINESS CASH FLOW

LIFE INSURANCE

17%

DISABILITY BUY-OUT INSURANCE Note: Only 8% use an Accumulation Sinking Fund.

BUSINESS VALUATIONS

68%

OF OWNERS HAVE NEVER HAD THEIR BUSINESS VALUED.

41%

of owners

PAID $5,000 OR LESS to have their business valued.

WHEN HAVE VALUATIONS TAKEN PLACE?

49% 46%

LEARN MORE

WITHIN THE PAST TWO YEARS IN THE LAST TWO TO TEN YEARS

32%

of owners paid between

$5,001 AND $20,000

8%

of owners have paid

OVER $20,000

Need help getting started? Contact your financial representative.

The survey was conducted by Harris Poll and included over 500 online interviews conducted in January 2015. Interviews were conducted using our Harris Poll Small Business Panel. Results were weighted for company size based on the number of employees, entity type and annual sales. Potential respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. Because the sample is based on those who agreed to be invited to participate, no estimates of theoretical sampling error can be calculated.

WE’LL GIVE YOU AN EDGE®

Insurance products from the Principal Financial Group® (The Principal®) are issued by Principal National Life Insurance Company (except for in New York) and Principal Life Insurance Company. LH143-02 | 09/2015 | ©2015 Principal Financial Services, Inc.