Benchmark: Business-Continuation Planning
Some data showing 71% of small-business owners have small-business-continuation plans and who provided the plans.
First the good news: a recent survey found that 71% of small-business owners had set up a business-continuation plan to protect their companies in the event of their death. Now the bad: most plans depended on valuations done by owners themselves or other insiders instead of on independent assessments. With estate taxes running as high as 55%, that's simply too risky.
Who provided the company valuation included in your business-continuation plan? (by percentage of respondents)
Self/partner/colleagues 52%
Certified public accountant 37%
Lawyer 4%
Other 4%
Don't know 3%
Source: "Phoenix Home Life Fiscal Fitness Survey," Yankelovich Partners, Norwalk, Conn., 1994.
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