FOR IMMEDIATE RELEASE

CONTACT:
Steve Mullen
EndGame Public Relations
for RiverCross Partners
(804) 382-0017
steve@endgamepr.com

RETIREMENT CLOCK TICKING FOR BABY BOOMER ENTREPRENEURS
Many Boomer Small Business Owners Not Prepared

Richmond, Virginia (October 3, 2006) - There's a silent retirement crisis brewing in the United States. The first Baby Boomers are turning 60 this year, and there has been a great deal of talk about whether the Social Security system can handle the retirement of the 77-million people born in the post-World War II period. However, what's not being discussed nearly enough, even among the people directly affected, is how the small business owners in that demographic will handle the end of their working years and the transfer of their companies to a younger generation.

"Baby Boomers make up almost a third of the people here in Virginia, and the small business owners in that group need to plan even more thoroughly than non-business owners for the day when they can't or no longer want to work," said Jay Cowan of RiverCross Partners, one of the only firms in Central Virginia that specializes in helping small business owners develop succession and exit strategies. "Unfortunately, according to one survey (Pricewaterhouse Coopers, 2005), more than 60% of small business owners in the U.S. don't have a plan for who will take over when they retire."

With nearly five million small businesses in the United States (not counting home-based sole proprietorships) there are a lot of Americans dealing with this issue. Unfortunately, studies have found that they're not talking about their plans, even with their families.

"Many small business owners keep the details of their businesses secret, even from those closest to them," said Cowan. "When you're dealing with succession plans, that's a really poor idea."

To help small business owners start preparing for their eventual retirement, RiverCross Partners has developed a checklist of things to consider as the time approaches for Boomer small business owners to enjoy their "golden years."

CHECKLIST FOR BABY BOOMER SMALL BUSINESS OWNERS

* Prepare as early as possible: If you can, make decisions on the elements of your exit strategy, such as who will run the company when you retire, five to ten years in advance.

* Determine your company's value: The only way to truly know this is to sell the company, however it is possible to assess your company's worth before putting it on the market. Consider factors such as your company's assets and liabilities, multiple earnings, goodwill, and the type of business.

* Determine your retirement needs: How much income will you need? If you plan to sell your company, devise a backup plan in case you receive less than your asking price.

* Review all agreements you have with partners and/or shareholders: Is there an agreement already in place that determines who controls succession? What if your partner leaves the business before you do? What are the rights of your shareholders? These are issues that may determine how you can step down, and whether you have any control over how you do it.

* Write it all down: Once you've decided on your plan, put it all on paper. You don't want your family to have to go by memory if you're unable to assist with carrying out the plan when the time comes. If appropriate, have a contract written that lays out your compensation after you retire.

Local small business owners, or the advisers who work with them, can receive more help at educational sessions hosted by RiverCross Partners. The B.O.S.S (Business Owner Success Strategies) Workshops are conducted on the 2nd and 4th Thursday of each month from 4:00 p.m. to 5:30 p.m. They're held at the offices of RiverCross Partners, located at 10160 Staples Mill Road. The cost of each session is $25. For more information, contact Erin at (804) 545-6225 ext.124, or via email at rcadmin@rivercrosspartners.com.

About RiverCross Partners
The principal owners of RiverCross Partners have nearly 60 years of combined experience working with business owners and shareholders. The company's focus is helping owners of family-owned and privately-held businesses to develop and maintain strategies to build, preserve and transfer the full value of their interests to themselves, their families, or the next generation of owners, once they are no longer active in the business. RiverCross Partners focuses on exit strategies for owners, selective benefits for owners and key persons, and employee benefit plans. For more information about RiverCross Partners, please call (804) 545-6225 or visit www.rivercrosspartners.com.

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