Sumary of Two-thirds of wealthy business owners plan to sell or retire sooner due to Covid pandemic, survey finds:
- LightFieldStudios | iStock | Getty ImagesTwo-thirds of wealthy business owners accelerated their plans to retire or sell their business during the Covid pandemic, according to a new survey, reflecting the new psychological and financial landscape for business.
- The survey, from Clarfeld Citizens Private Wealth, said 66% of high net-worth business owners indicated that the pandemic pulled forward their plans to sell their business or retire.
- Half plan to sell their business as a result of the pandemic.
- The survey covered 150 business owners with net worth of at least $2 million and investable assets of $5 million or more.
- Clarfeld said wealthy business owners came to value their time and families more during the pandemic and made the decision to cut back on work and business.
- “Uncertainty around taxes and the growing likelihood of higher taxes on the wealthy is also adding pressure on business owners to sell.
- President Joe Biden, the Senate and the House have all proposed an increase in the capital gains tax rate and potential changes to the estate tax, which would increase the tax bite of any business sale.
- Biden and Democrats in Congress are also proposing higher income-tax rates on high earners.