Principal® Kicks-Off National Effort to Boost Low Business Succession Planning
March 07, 2018 at 08:00 AM EST
Principal Financial Group® kicked off a new initiative to collaborate with advisors today to help boost low succession planning among U.S. business owners. Principal® highlights employee stock ownership plans (ESOPs) as an important option for advisors to consider when assessing clients’ and potential clients’ succession planning options. To support advisors, the company developed a first of its kind, action-oriented website to help guide succession planning conversations.
Succession plans are essential for business owners that want to ensure their business remains viable and continues to support the economy. However, more than 70% of business owners in the U.S. do not have a formal plan and are not taking action.1
“We’ve worked with advisors around the country to facilitate many business succession plans and ESOPs,” said Jerry Ripperger, vice president of consulting at Principal. “While ESOPs are not a new phenomenon, they are an underutilized strategy in helping business owners successfully plan their exit strategy and leave behind a legacy they can be proud of.”
Unique Online Resource Unlocks Potential of ESOPs in Succession Planning
Advisors are encouraged to visit principal.com/esopbenefits and use it to help guide dialogue with business owners about their succession plan and future goals. Features include, but are not limited to the following:
As a part of continued commitment to succession planning with ESOP education, Principal will roll out a series of activities in 2018 including blogs, event sponsorships, marketing materials, and regular updates to the new website.
“ESOPs are a smart strategy with multiple benefits for trusted advisors working to help business owners overcome challenges and maximize opportunities,” said Ripperger.
According to research findings from The ESOP Association, there is a direct correlation between ESOPs and business performance.2
1Securian Financial Group. 2015 Securian Small Business Owner Life Stage Study, April 2016.
2The ESOP Association. The 24th Annual Economic Performance Survey of ESOPs, October 2015.