2025BeyondWealthReportforBusinessOwners

2|FirstCitizensWealth?2025

Tableofcontents

3

Methodology

5

Clickthroughtokeytakeaways

6

Businessownership

9

Exitplanningandretirement

15

Businessworth

17

Businessownerprofile

Methodology

FirstCitizensWealth

partneredwithLogicaResearchtoconducttheseconditerationoftheBeyondWealthReports.

500Businessowners

withfewerthan1,000employeesand$500K+ininvestableassets

AA

ItuncoversnewinsightsaboutthebehaviorsandattitudesofwealthyAmericansandbusinessownersonmoneymanagement,retirementandestateplanning,andbusinesssuccessionplanning.

Thisstudy,theBeyondWealthReportforBusinessOwners,focusesonthosewealthyAmericanswhoarealsobusinessowners.

Acompanionstudy,the

BeyondWealthReportforWealthy

Americans

,focusesonfindingsandinsightsrelatedtowealthyAmericans-thosewith$500,000ormoreininvestableassets.

ResponseswerecollectedthroughanonlinesurveyduringAugustandSeptemberof2025.

3|FirstCitizensWealth?2025

LogicaResearchisanindependentresearchfirmandisneitheraffiliatedwith,noremployedby,FirstCitizensBank.

4|FirstCitizensWealth?2025

Morethanprofit:Purposeandpersistence

Thisyear’sBeyondWealthReportforBusinessOwnershighlightstheforcesshapingbusinessownershipin2025—andhowownersare

choosingtoadapt.

Owningabusinesstodaymeansmanagingcomplexityonmultiplefronts.Economicpressuresdon’tstopatthebottomline—theyrippleinto

personalfinances,familylegaciesandsuccessionplans.LikeotherwealthyAmericans—morethanhalfofwhomsaytheyare“somewhat”or“very”stressedabouttheirfinances—businessownershavehadtocontendwitheconomicuncertaintyoverthepastyear.

WhileinflationandmarketvolatilityweighheavilyonmostAmericans,

ownersfaceadditionalchallenges.Shiftsingovernmentpolicy,suchas

rapidlychangingtariffsandrisinginterestrates,threatentoimpactnotonlytheirpersonalbalancesheetsbutalsotheirbusinesses.

Despitethesepressures,businessownersremainnotably

self-assured:54%saythey’reconfidentintheirfinancialsituation,comparedwithjust35%ofnon-owners.Thatconfidenceisnot

incidental—it’searnedthroughaction.

Manyareretoolingoperations,adjustingpricing,payingdowndebtathigherratesthantheirpeersandincreasingretirementcontributionstostrengthenbothbusinessandpersonalfinances.

Ownersalsoreporthavingslightlymoresetasideforretirementthannon-owners,buttheyplantofullyretirelateratage66–afullyearbeyondtheirpeers.Thatdecisionisn’tjustrootedinfinancialgain.Nearlyallownerswesurveyedthisyear—94%—affirmthatrunningabusinessis“worthit,”

citingpersonalfulfillmentandasenseofcontrolaskeyfactors.

Runningabusinesshasalwaysbeenaboutmorethanprofit—andwhileuncertaintymayshapetheenvironment,itdoesnotdictatetheoutcome.Asyouexplorethefindingsinthisyear’sBeyondWealthReportfor

BusinessOwners,Iinviteyoutorecognizethechallenges,resourcefulnessanddeterminationthatdefinetoday’sbusinessowners.

NerreShuriah

ReportAuthor&SeniorDirectorofWealthPlanning&Knowledge,FirstCitizensWealth

Withforesightandvision,businessownersarecontinuingtoturntoday’spressuresintotomorrow’sopportunities.

5|FirstCitizensWealth?2025

Clickthroughtokeytakeaways

Businessownersarestayingthecoursebyfocusingongrowthratherthanexitplans,thoughdoubtsremainaboutretirement

Previouslyowningabusinessprovidescurrentbusinessownerswithauniqueperspective,includingbeingmore

proactiveduringeconomicuncertaintyandwhenexitplanning.

Jumptoslide

Economicchallengesdriveownerstofine-tunetheiroperations,withmanyadjustingprices.

Jumptoslide

Almostallbusinessownersconsiderowningabusiness“worthit》”withtopreasonsbeingthatitprovidespersonalfulfillmentandasenseofcontroloverone’slife.

Jumptoslide

Topsourcesofbusinessfundingincludepersonalsavingsandtraditionalbank

loans,thoughexperiencedownersaremorelikelytoleverageoutsidefunding.

Jumptoslide

Mostownersdon’tplantoexittheirbusinessinthenearfuture.Once

theydoexit,mostplantosellandtotakeabreak.

Jumptoslide

Businessownersbenefitfrompreviousexperience

Mosthaveasinglebusinesstheyowncurrentlyandatleastonebusinesstheypreviouslyowned

Typically,businessownersownasinglebusiness.However,formost,theircurrentbusinessisnottheirfirst;twoinfivehaveownedonebusinesspreviously,andaquarterhavepreviouslyownedtwoormore.

Thosewithpreviousbusinessownershipexperiencemaybebenefittingfromfamilyexperience-aquarterofthosewithpreviousexperience(26%)saytheircurrentbusinessisafamily-ownedoperation,comparedtooneinten(9%)offirst-timeowners.

Numberofbusinessespreviouslyowned

Numberofbusinessescurrentlyowned

Hasnotpreviouslyownedabusiness

19%

Ownsmorethanonebusiness

35%

40%

Previouslyownedonebusiness

Ownsasinglebusiness

Previously

ownedtwoor

81%

25%

morebusinesses

Q.28:Howmanyprivatelyheldbusinessesdoyouown?

6|FirstCitizensWealth?2025

(Base:BusinessOwners=500)

Businessesareprimarilyself-funded

Mostbusinessownersself-fundtheirbusiness,withaminorityseekingoutsideinvestments

Personalsavingsandbankloansarethemainwaysbusinessownersfundthestartoftheirbusiness.Lesscommonly,theyturntooutsidesources,suchasinvestmentsfromfriendsandfamily,smallbusinessgrants,privateequityandventurecapital.

Experiencedownersaretwiceaslikelyasfirst-timeownerstoleverageprivateequityandventurecapital.

Sourcesofbusinessinvestment

PersonalsavingsBankloans

InvestmentsfromfriendsandfamilySmallbusinessgrants

Investmentsfromprivateequity

InvestmentsfromventurecapitalAngelinvestorsCrowdfundingMicroloans

66%

40%

29%

23%

Ownershipspotlight

First-timeownersusedinvestmentsfromPEorVC18%ExperiencedownersusedinvestmentsfromPEorVC38%

19%

18%

10%

9%

8%

Q.30:Wheredidyousourcethemoneyyouusedtostarttheprivatelyheldbusinessyoucurrentlyown?

7|FirstCitizensWealth?2025

(Base:BusinessOwners=500;First-TimeOwners=173,ExperiencedOwners=327)

Economicconditionsspurchangestobusinesses

Priceadjustmentsarethetopresponsetoeconomicuncertaintiesforbusinessowners

Whenfacingcurrenteconomicconditionslikeinflationandtariffs,businessownersaremostlikelytoadjustpricing,followedbyincreasingmarketingandchangingtheirrelationshipswithvendorsandsuppliers.

Experiencedownersaremorelikelytofurtherinvestintheirbusinessinresponsetorecenteconomicconditions,beingtwiceaslikelytoexpandoperationsandhiremoreemployeesthanfirst-timeowners.

Top10changesmadeinresponsetoeconomicconditions

34%

Adjustingyourprices

mm23%

22%

20%

20%

mm19%

mm19%

mm13%

mm12%

9%

First-timeowners Expandingoperations11%Increasingemployeeheadcount8%

Experiencedowners Expandingoperations23%Increasingemployeeheadcount15%

IncreasingmarketingandadvertisingChanginghowyouworkwithvendors/suppliersMinimizingtaxliabilities/increasingdeductionsChangingthevendors/suppliersyouworkwith FocusingmoreonresearchanddevelopmentExpandingyouroperations

Increasingemployeeheadcount

Adjustingemployees’wagesorbenefitsplansDecreasingemployeeheadcount

Q.35:Whatchanges,ifany,haveyoumadetoyourbusinessinresponsetorecenteconomicconditionslikeinflationandtariffs?

8|FirstCitizensWealth?2025

(Base:BusinessOwners=500;First-TimeOwners=173;ExperiencedOwners=327)

Mostbusinessownershavelonger-termplanstoexit

Halfofownershaveanexitstrategy,thoughmostdonotplantoexittheirbusinessanytimesoon

Onlyhalfofbusinessownershaveabusinessexitstrategy,andmostdonotplantoexittheirbusinesswithinthenextseven

years.Thosewithanexitstrategyaremorelikelytoplantoexitwithinthenext10years》suggestingthatownersdon’tfocusonexitstrategieswhentheexitismorethanadecadeaway.

Experiencedownersaremorelikelythanfirst-timeownerstohaveanexitstrategy,despitesimilarexittimelines.Havingan

exitstrategycanberelatedtohighersatisfactionwiththeexit.Amongthosewithanexitstrategycurrently,sevenin10(69%)wereverysatisfiedwiththeirpreviousbusinessexit;amongthosewithoutanexitplancurrently,onlyfourin10(41%)were

verysatisfied.

Timelineforexitingbusiness

Hasabusinessexitstrategy

Yes

Notsure

9%

7%

Next3years

13%

?

Not

sure

14%

7-9years

20%

3-6

years

46%

10+

years

First-timeowners:44%

Experiencedowners:58%

No

38%53%

Hasanexitstrategy;willexitinlessthan10years46%Lacksanexitstrategy;willexitinlessthan10years37%

Q.39:Doyouhaveanexitstrategyforyouasitrelatestoyourbusiness?Byexitstrategy,wemeanaplantosellyourbusinessorpassonownershiptosomeoneelse.

Q.40:Whendoyouplanonexitingyourbusiness?

Q.44:Thinkingaboutthebusinessyoumostrecentlyexited,howsatisfiedwereyouwiththeprocessoftransitioningownership?

9|FirstCitizensWealth?2025

(Base:BusinessOwners=500;First-TimeOwners=173;ExperiencedOwners=327;Hasanexitstrategy=265;Lacksanexitstrategy=190)

Manyplantotransferownershiptofamily

Mostownersplantoselltheirbusiness,withthetoprecipientbeingfamily

Mostbusinessownersplantoexittheircurrentbusinessbyselling,withthemostcommonrecipientsbeingcurrentstakeholders,suchasfamilymembersfollowedbybusinesspartnersormanagement/employees.

Ownersexitingtheirbusinessin10ormoreyearsarenearlytwiceaslikelytosaytheyaretransferringtheirbusinesstofamily.

Ownerswhohavepreviouslyexitedabusinessaretypicallysatisfied(95%)withtheexperience.

Exitstrategies

Selltoanotherfirm

Satisfactionwithpreviousexit

Anotherway

Selltoanotherbusinessowner:19%

SelltoaPEorotherinvestmentfund:4%

Liquidation:8%

IPO:3%Unsure13%

23%

24%

Verysatisfied

SomewhatsatisfiedNotsatisfied

Selltocurrentstakeholders

Sell/givetoafamilymember:35%Selltopartners:9%

Selltomanagement/employees:9%

53%

Exitingin1-9years;willsell/givetofamily25%

Exitingin10+years;willsell/givetofamily48%

57%

38%

5%

Q.42:Howdoyouplantoexityourbusiness?/Q.44:Thinkingaboutthebusinessyoumostrecentlyexited,howsatisfiedwereyouwiththeprocessoftransitioningownership?

10|FirstCitizensWealth?2025

(Base:BusinessOwners=500;OwnersWhoPreviouslyOwnedAtLeast1Business=327;Exitingin1-9years=207;Exitingin10+years=229)

Formanyowners,exitingdoesn’tmeanretiring

Mostbusinessownersdon’tplantoretireafterexitingtheirbusiness

Oncetheyexittheircurrentbusiness,mostownersplantorelaxbyspendingmoretimewithfamilyandfriends,travelingandspendingmoretimeonleisureactivities.

However,onlytwoinfiveownerssaytheyplantoretire,suggestinganappetitetocontinueworkingaftertheirbusinessexit.

Plansafterexitingbusiness

59%

59%

Spendmoretimewithfamilyandfriends

Travel

51%

Spendmoretimeonleisureactivities

41%

Retire

39%

Improvephysicalandmentalhealth

Q.43:Whatareyourplansafterexitingyourbusiness?

11|FirstCitizensWealth?2025

(Base:BusinessOwners=500)

Businessownershipinformsretirementplanning

Businessownershipshapesretirementdecisions,fromcontributionstoprofessionalhelp

Formostowners,theirbusinesshasshapedtheirretirementdecisions,suchasanincreaseincontributingtotheirretirementsavingsorworkingwithaprofessionaltohelpmanagetheirretirementplan.

Experiencedownersaremorelikelytosaybusinessownershiphasimpactedretirementplanningdecisions,withhalfincreasingtheirretirementsavingscontributionsandathirdspendingmoretimeonretirementplanning.

Impactofbusinessownershiponretirementplanning

Allbusinessowners

First-time

owners

Experienced

owners

Increasingcontributionstoretirementsavings

44%

36%

48%

Beganworkingwithaprofessionaltohelpmanageretirementplanning

36%

30%

39%

Spendingmoretimeonretirementplanning

30%

23%

34%

Openingaspecialtax-advantagedaccount

23%

18%

26%

Reducing/delayingcontributionstoretirementsavings

13%

9%

16%

Spendinglesstimeonretirementplanning

13%

10%

14%

Businessownershiphasnoimpactonretirementplanning

20%

31%

15%

Q.33:Howhasowningabusinessimpactedyourretirementplanningdecisions?

12|FirstCitizensWealth?2025

(Base:BusinessOwners=500;First-TimeOwners=173;ExperiencedOwners=327)

Businessownersaremorepreparedforretirement

Ownershavemoresavedforretirementwhilealsohavingtheirshareofconcerns

Amountsavedforretirement

Laterlifeplanningdocuments

Notconfidentinretiringontime

Onaverage,businessownershave

$1.8M(Average)

$875k(Median)

Non-owners

moresavedforretirementthannon-owners,thoughmedianretirement

Owners

Owners

77%60%

23%

Non-owners

Lifeinsurance

$1.5M(Average)

$875k(Median)

Non-owners

Will

63%

65%

Estateplan

56%

36%

Revocabletrust

21%

16%

savingsaresimilarforboth.Businessownersalsoreporthavingnearlyfourtimesasmuchdebtasnon-owners,thoughthatmaybedrivenby

borrowingrelatedtotheirbusiness,suchasloansforbusinessexpansion.

Currenttotaldebt

Averageagetofullyretire

Morethanhalfofbusinessownersare

$750k(Average)

$175k(Median)

66yearsold65yearsold

Owners

Owners

veryconfidentintheirfinancialsituation(54%)comparedtojustoverathirdof

Irrevocabletrust19%12%

Non-owners

non-owners(35%)however,business

$188k(Average)

$25k(Median)

Non-owners

-

.

ownersarelessconfidentaboutretiringontimeandexpecttofullyretireayearlaterthannonownersHowever,owners

arealsomorelikelytohavelater-lifeplanslikelifeinsurance,estateplansand

irrevocabletrusts.

Q.48:Howmuchmoneydoyoucurrentlyhavesavedforretirement?/Q.47:Whatistheapproximatetotalvalueofyourdebt?Thisincludesyourrealestatedebtsuchasmortgages.

Q.34:Thinkingaboutpersonalwealthplanning,whatarethetopthreeareaswhereyoucurrentlyfeeltheleastconfident?/Q.19:Atwhatagedoyouexpecttoretire?/Q.27:Whichofthesedoyouhave?

13|FirstCitizensWealth?2025

(Base:Owners=500;Non-Owners=500)

Q.5:Howconfidentdoyoucurrentlyfeelaboutyourcurrentfinancialsituation?(Base:Total=1,000;Non-Owners=500;BusinessOwners-500;UHNW-120

Personalandbusinessfinancesareintertwined

Businessownersmakelittledistinctionbetweenpersonalandbusinessfinancialmanagement

Mostbusinessownershavesignificantoverlapacrosstheirpersonalandbusinessfinancials,especiallywhenitcomestotheirbankaccounts,creditcards,taxprofessionalsandfinancialadvisors.

Budgetingsoftware12%44%31%13%

Thoughnotamajority,businessownersaremostlikelytouseaninvestmentaccountordebitcardonlyforpersonalfinancialsandbudgetingsoftwareonlyforbusinessfinancials.

Personalandbusinessfinancialmanagement

Bankaccounts

Personalfinancialsuseonly

11%

Bothpersonaland

businessfinancialuse

78%

Businessfinancialsuseonly

10%

Don’thave

oruse

1%

Creditcards

17%

73%

9%

1%

Taxprofessional

8%

65%

22%

5%

Professionalfinancialadvisor

22%

60%

17%

1%

Investmentaccounts

32%

55%

12%

1%

Debitcards

31%

53%

10%

6%

Q.31:Whichofthefollowingdoyouuseforyourpersonalandbusinessfinances?

14|FirstCitizensWealth?2025

(Base:BusinessOwners=500)

Owningabusinessisalmostalwaysworthwhile

Businessownershipisworthitasmanycitepersonalfulfillmentandcontrolovertheirfinances

Almostall(94%)ofbusinessownersconsiderowningabusiness“worthit》”withtopreasonsbeingthatitprovidespersonalfulfillmentandasenseofcontroloverone’slife.

Onlyathirdofownerssaythefinancialpotentialisareasonthatbusinessownershipisworthwhile.

PersonalExperiencewithBusinessOwnership

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25%

25%

25%

25%

25%

25%

25%

25%

25%

32%

Financialpotential

Earningpotential:14%

Financialsuccess:12%Leavealegacy:7%

$

$$

77%

Personalfulfillment

\:

☆

Personallyvaluable:61%

Fulfillment/satisfaction:20%

Growth/learning:13%

62%

Controloverlife/work

Freedom/autonomy:28%

Growbusiness:26%

Controlovercareer:18%

25%

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15|FirstCitizensWealth?2025

Q.45:Thinkingaboutyourpersonalexperiencewithbusinessownership,wouldyousayitis“worthit”toownabusiness?Pleasesharereasonswhyyoufeelitisorisnot“worthit.”(Base:BusinessOwners=500)

Customersatisfactionisatthecoreofbusinessvalue

Mostownersknowthevalueoftheirbusinessandareconfidentit’sdrivenbyhappycustomers

Nearlyallbusinessownershaveatleastaballparkestimateofhowmuchtheirbusinessisworth,withanaveragevaluationof$11.8million.

Whileownersaregenerallyconfidentineverydriveroftheirbusiness’valuation》customersatisfactionrisestothetop.

Knowbusinessworth

P…

Customersatisfaction

68%

Independencefromowner

56%

Financialperformance

53%

Operatingsystems/website/facilities

53%

Diversifiedcustomerbase

53%

Growthpotential

51%

Accuracyofbusinessvalueassessment

50%

Next-levelmanagement

45%

Predictablerevenue

41%

Don’tknow10%

Knowexactvalue

47%

Ballparkestimate43%

25%

P…

P…

P…

Approximatebusinessworth

25%

$11.8M$4.8M

(Average)(Median)

ConfidenceindriversofbusinessvalueSummaryofveryconfident

Q.36:Doyouknowhowmuchmoneyyourbusinessisworth?/Q.37:Approximately,howmuchisyourbusinessworth?/Q.38:Howconfidentareyouthatthefollowingaredrivingthevalueofyourbusiness:

16|FirstCitizensWealth?2025

(Base:BusinessOwners=500;Knowbusinessworth=447)

17|FirstCitizensWealth?2025

Businessownerprofile

Businessentity

Numberofemplo