The research reveals key considerations and concerns for mid-market business transitions

CINCINNATI–(BUSINESS WIRE)–Fifth Third Private Bank, a division of Fifth Third Bank, National Association, today announced the release of its collaborative research with the National Center for the Middle Market, located at The Ohio State University’s Max M. Fisher College of Business. The research provides insights into the personal dynamics and drivers of middle market business transitions.

Data from the survey reveals that, for business owners, maximizing valuation ranks as the number one problem, with more than three-quarters citing it as a top concern. Most also worry about building an effective advisory team (68%), ensuring a family legacy (53%) and maintaining the culture of the organization they worked so hard to build (52%). Additional insights and insights from the report are available here.

NCMM surveyed 300 middle market executives, including 75 privately held middle market business owners who benefited from the sale of all or part of their companies in the past 24 months. Among other results, the research found that, due to delays caused by the pandemic, many owners who sold in 2020 and 2021 had more preparation time than they originally planned. Making good use of that extra time will likely contribute to a greater sense of preparedness overall. However, feeling well prepared for a big transition doesn’t completely assuage the fear.

“Driving a business transition or liquidity event is complex, both financially and emotionally,” said Chad Slaughter, managing director, national private bank, Third Fifth Bank. “Whether they wish to sell the business or pass it on to family, Fifth Third takes a personalized approach to working together with owners and their outside counsel to optimize personal and business outcomes.”

Established in 2021, Fifth Third’s Business Transition Advisory Team is a Private Banking team dedicated solely to preparing business owners financially and personally for their business transition. BTAT advisors work with other Private, Commercial and Fifth Third Bank business lines to meet client needs.

“This research provides insights that give us an enhanced ability to serve as a trusted advisor,” said Frieda Rakhman, managing director, strategic client development of Fifth Third’s BTAT. “We find that owners who surround themselves with expert advisors are much better prepared and more confident about their future.

“Given the importance and complexity of personal preparation for a business transition, the exclusion of wealth advisors is often a particularly costly oversight.”

According to NCMM, the US middle market includes 200,000 companies with annual revenues between $10 million and $1 billion. Together, they account for 44.5 million jobs, or one-third of total US private employment, generating more than $10 trillion in combined income annually.

“The collaboration between Third Fifth Private Bank and the National Center for the Middle Market to produce these insights on business owner transitions is important for a number of reasons,” said Doug Farren, NCMM’s managing director. “Most middle-market companies are privately held, including a significant portion of family-owned businesses, so they likely face these issues now or will in the future.”

About the National Center for the Middle Market

The National Center for the Middle Market is a collaboration between The Ohio State University Max M. Fisher College of Business, Chubb and Visa. It exists for one purpose: to ensure that the vitality and viability of middle market companies are fully realized as essential to our country’s economic outlook and prosperity. The Center is the leading source of knowledge, leadership and innovative research on the middle market economy, providing critical data analysis and insights to companies, policy makers and other key stakeholders. NCMM is fully committed to funding and disseminating the most reliable open source research, dynamically creating new knowledge, delivering programs that drive value for mid-market companies, and providing an informed perspective on health and middle market futures via Middle Market. Market indicator.

About three past five

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of June 30, 2022, the Company had $207 billion in assets and operates 1,080 full-service banking centers, and 2,153 Fifth Brand ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third offers its customers access to approximately 56,000 fee-free ATMs throughout the United States. Fifth Third operates four core businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2022, had $512 billion in assets under care, of which it managed $54 billion for individuals, corporations and nonprofits through its Trust and Registered Investment Advisory Businesses. . Investor information and press releases can be found at Fifth Third’s common stock trades on the NASDAQ® Global Select Market under the symbol “FITB.”

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