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Key Takeaways Half of all owners will exit their business because of death, disability, divorce, distress or disagreement.
Business owners nationwide have not done a good job of preparing their families for an exit.
A regular cadence of family meetings combined with good documentation can prevent family strife.
Every business owner has a plan — or at least they think they do. They know where the important documents are stored, which child has expressed interest in the business, and what they want to happen if they retire, become disabled or pass away. The problem is that knowing isn’t the same thing as documenting, and when a crisis occurs, your family doesn’t get access to what’s in your head. They get access only to what’s in writing.
I’ve talked with thousands of business owners and their advisors throughout my career, and one truth recurs: families rarely struggle because they lack love for one another. They struggle because they lack clarity. When a founder’s wishes are undocumented, spouses are left making impossible decisions. Children are left interpreting intentions. Advisors are forced to fill in gaps. At the very moment a family should focus on supporting one another, they are instead trying to answer questions that should have been resolved years earlier.
The result is often confusion, conflict and damaged relationships. That’s why one of the greatest gifts a business owner can leave their family isn’t wealth — it’s clarity. A written legacy plan provides direction during moments of uncertainty and helps families move forward with confidence rather than guesswork.
Half of owners will experience one of the 5Ds
One of the biggest mistakes business owners make is assuming they have more time. They tell themselves they’ll create a plan after the next acquisition, after the next growth phase, or after they finally slow down. The reality is that life doesn’t always cooperate with those timelines.
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