Raymond James Survey Reveals Urgent Succession Planning Needs Among Business Owners
A recent survey conducted by Raymond James between April 7-18, 2025, involving 540 U.S. privately held business owners, underscores a significant trend: the imminent transfer of wealth and ownership. The findings highlight that a substantial majority of these business leaders are actively planning their exit strategies, with many facing a critical need for growth capital and a concentration of their personal net worth within their operating businesses.
The data reveals that 88% of business owners intend to transition some or all of their financial stake in their companies within the next decade, with an even more pressing timeline for 56% who plan to do so within five years. Crucially, 85% of respondents already have a formal transition plan in place, signaling a proactive approach to succession. However, the survey also points to a high degree of asset concentration, with 44% of owners reporting that their business constitutes more than half of their personal wealth. This dependency on a single asset class amplifies the importance of meticulous planning to ensure financial security post-transition.
The need for external funding remains a dominant theme. A staggering 85% of business owners anticipate requiring additional capital to fuel future growth. When considering sources for this growth capital, private equity emerged as a leading option, with 52% of respondents indicating they would consider it. Traditional bank loans followed closely at 50%, with personal funds and securities-based lines of credit cited by 43% each. This diverse range of funding considerations suggests owners are exploring multiple avenues to balance capital needs with control and desired exit outcomes.
Beyond financial planning, the survey delves into the future trajectory of these businesses. A significant portion, 35%, plan to transition their businesses to family members, a figure that rises to 44% among owners of companies valued at over $15 million. This indicates a strong inclination towards maintaining legacy within family structures. However, the survey also flagged potential blind spots regarding operational continuity and future success. While external factors like market expansion (22%) and the economic environment (17%) were identified as critical, people-centric elements such as hiring and retention (12%) and the readiness of next-generation leadership (11%) were ranked lower. This suggests a disconnect between strategic growth aspirations and the human capital necessary to sustain them.
The insights from this Raymond James survey offer a compelling snapshot of the current landscape for privately held businesses. As a significant wave of ownership transitions approaches, financial institutions and advisors will play a crucial role in helping business owners navigate complex succession plans, optimize capital strategies, and ensure a smooth transfer of wealth that aligns with their long-term personal and financial objectives. The findings also serve as a critical reminder for business leaders to prioritize not only financial and operational readiness but also the development and retention of talent to ensure the enduring success of their enterprises.
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