TAMPA, Fla, May 22, 2018– A recent report published by UBS titled “Who’s the Boss?” found that trends in business ownership are changing the economic environment.
An estimated 58 percent of today’s wealthy investors would consider starting a business due to the current regulatory environment, recent tax reform and the desire to be their own boss. However, at the same time, 41 percent of current business owners are preparing to leave within the next five years. Most say they’re ready to retire, it’s a good time to sell and they desire more work-life balance. Together, these two phenomena are changing the business landscape.
This trend is alive and well in Tampa. UBS recently sponsored USF’s Fast 56 program that identifies, recognizes and celebrates the world’s fastest growing USF alumni-owned or led businesses. From this partnership, the financial advisors at UBS have identified many business owners to engage in financial planning conversations with in regard to both business expansion and preparation to sell.
“Whether someone’s plan is to cash out or to go all-in during this time, a UBS financial advisor has the resources and expertise to help with growth, liquidity or an exit strategy,” said Greg Kadet of UBS Tampa.
Many current business owners looking to exit are simply unprepared. 58 percent have never had their business appraised and 48 percent have no formal exit strategy in place. Among business owners who plan to sell but considered keeping the business in the family, 89 percent cite a lack of interest from their potential heirs. They say their children would rather inherit the assets from a sale. In cases when heirs do take over, parents report worries the heir will sell the business or squander profits.
Millennials today are interested in starting businesses for work independence, the possibility of pursuing a passion and the opportunity for financial gain. Even so, few are prone to starting their business, with 90 percent believing a professional career to be easier. They fear high stress levels, failure and risk associated with entrepreneurship.
UBS provides financial advice and solutions to private, institutional and corporate clients worldwide, as well as private clients in Switzerland. The operational structure of the Group is comprised of a Corporate Center and five business divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management and the Investment Bank. Additional information is available at www.ubs.com/.