2017 Business Transition Planning
By Larry Grypp, President, University of Cincinnati's Goering Center for Family & Private Business
At the Goering Center we are working with private and family businesses across the spectrum to plan and prepare for the changes 2017 will bring. Knowing many in the printing field, we under- stand that most of your businesses are private and family-owned and
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WINTER 2017
operated. Statistics show that many family busi- nesses in particular will experience some form of ownership transition within the next five to ten years, and the printing industry overall is no excep- tion to this pending change.
It is estimated that over 40% of family business lead- ers in the next few years expect to retire, leading to either succession, sale, or merger of the business. The mean age of family members in control of the family business in 2017 will be 60.2 years, and thus transition is coming.
According to a First Research Study, the printing industry in the U.S. includes around 35,000 com- panies with an estimated $90 billion of annual revenue. The majority of these printers are small or midsized businesses that operate one produc- tion plant, employ fewer than 20 people, and have annual revenue under $5 million. The majority of these smaller businesses are family-owned and family-managed.
Having a contingency plan for change is paramount in any business. Be it sale, merger, or succession, many family businesses, not just printers, will be
WHAT TO EXPECT
In 2017 Firms should consider initiating a contingency, transition, or succession plan. As more baby boomer business leaders near retirement age, the question will be asked: "What's next for the business?"
For the Next Few Years For the printing industry, as a microcosm of the overall family business world, many firms will most likely have to deal with some form of ownership transition within the next few years.
forced to deal with some form of transition in the upcoming years. I can share that a vast majority of all family-owned businesses would like to pass the business to their next generation. However, fewer than 30% of those family-owned businesses will successfully do so.
Still, as with many of my constituents, if keeping the business in the family is the goal, then you need to start planning now. 2017 will be the time to initiate a plan, select a successor(s), and outline the priorities needed to strategically pass the business to the next generation. Your first move is to open the discussion and understand that your business is not alone.
If you need assistance with transition planning, visit
www.GrowYourFamilyBusiness.com where you can find information on starting and developing your business plan for the future.
INSIGHTS
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