You're leaving money on the table, plain and simple. In each of the past three exit planning issues, we've tried to convey just how much business can be gained from an exit planning focus. According to John Leonetti, managing director of Pinnacle Equity Solutions (and last year's cover subject), the number of retiring business owners is expected to grow from 50,000 to 750,000 by 2009. Half of all business owners are baby boomers. And the majority of business owners are now within 15 years of the traditional retirement age of 65. As we said then, it makes the head spin. And yet advisors still aren't biting.
We realized (somewhat belatedly) that we can rattle off impressive exit planning statistics all day long, but it won't motivate readers to act. Numbers aren't what matter most to your clients, and they aren't - hopefully - what matter most to you. It's the comfort and confidence your clients take from the emotional connection you've cultivated over the course of the relationship that keeps them coming back. So this year we're trying something different. We feature a prominent expert in the field of exit planning, Jim Brubaker, but also include a baby boomer client who is just about through with the exit planning process. As we guessed, it was the emotions and family dynamic that was featured most prominently, and where the advisor found the most satisfaction. He'll also reap the added benefits of managing the client's proceeds from the sale as part of his asset base, signifying that the exit is not the end of the relationship.
The pressure to diversify revenue streams and gain new expertise in the current financial crisis continues to build - and exit planning is one lucrative area in which to do so. For Brubaker and his client, it was a win-win. Honestly, how often have we heard that lately?
