During conversations with hundreds of successful business owners, I have discovered some common misconceptions about exiting businesses and harvesting owners' wealth. If you do not understand the following myths and truths, you probably are putting your wealth at a high-level risk.
Myth No. 1: I will just sell my business and retire.
Truth: According to the U.S. Chamber of Commerce, fewer than 20 percent of businesses for sale actually close, and the percent of closings actually is less for the construction industry. According to Fails Management Institute, Raleigh, N.C., most transactions in the construction industry are internal; a majority of transactions are management buyouts, and a small percent includes Employee Stock Ownership Programs (ESOPs) and some form of gifting.
Myth No. 2: I will deal with my exit plan in five years.