US Trust has today revealed the findings of its 2016 Insights on Wealth and Worth study, which among other things looked at the perceptions and habits of high net worth business owners.

Wealthy business owners today are most worried about the unknown impact of the 2016 presidential election and cybercrime, according to a survey that also revealed an alarming degree of apathy among respondents when it comes to succession planning.

The survey of 242 business owners with at least $3 million in investable assets is part of US Trust's 2016 Insights on Wealth and Worth study. Among the key findings, less than half (44 per cent) of business owners have discussed how to manage a potential liquidity event with a professional advisor, pointing to a ripe industry opportunity to engage this client segment.

As mentioned above, the unknown impact of the 2016 presidential election and a potential cybersecurity attack were cited as the biggest areas of concern by respondents, at 66 per cent and 64 per cent respectively. Personal income taxes (61 per cent), employee healthcare costs (57 per cent) and government regulations (55 per cent) were also identified as top-of-mind. It transpired that younger entrepreneurs (Millennials and Gen X) are far more worried than older business owners about external impacts on their business - government policies and regulations in particular (including US trade policies and corporate tax rates). Overall, only about 35 per cent said they are concerned about a possible rise in the minimum wage rate or access to capital.

But perhaps the biggest takeaway from the study is one which also came through strongly in last year's edition: that there is a “big unmet” need for advice on business succession planning. Most business owners (63 per cent) don’t have a formal exit strategy, including plans to sell or transfer ownership and leadership of their companies, according to the findings. More worryingly, as many as 71 per cent of those over the age of 52 don't have a succession plan in place, it emerged.

“The findings suggest that many older business owners equate succession planning with retirement and/or end-of-life planning and therefore put it off,” US Trust said. “This is reflected in their reasons for not developing a formal succession plan: No plans to retire soon (43 per cent) and their wishes for their business are outlined in a will (29 per cent).”

Conversely, younger business owners (Millennials and Gen X) are more likely to have planned for succession than their older counterparts, possibly to take advantage of strategic opportunities, US Trust added. One in three younger entrepreneurs also plan to sell or transfer ownership of their company within the next three years, the firm found.

Meanwhile, in other findings, most (95 per cent) of those surveyed founded or acquired their companies, while few inherited their business. Nonetheless, 70 per cent said their upbringing was very influential in their success, and that family plays a central role in business ownership. Indeed 42 per cent have a family member involved in their business in some capacity. US Trust noted, however, that family involvement can complicate decision making as well as be a competitive advantage.

“Building and sustaining personal wealth and building a successful business go hand in hand, and when managed separately, it’s easy to drop the ball on one area or the other,” said Keith Banks, president at US Trust. “We know that business owners have diverse financial needs that don’t fit neatly into the way most financial firms are organized. Having a dedicated, trusted advisor who shares a vision of the bigger picture can help connect the dots between an owner’s personal and business lives so that both reach their full potential.”