PITTSBURGH, PA – PNC Private Bank recently revealed research findings exploring the intersection of business ownership and personal wealth.
The findings are outlined in the opening Business Owner Wealth Insights The report, which is based on a national survey conducted with Ipsos. The survey explores how mid-market business owners balance growth, succession and legacy for their business and personal finances.
The research revealed a strong interest in integrated financial planning among business owners. Nearly nine in 10 respondents (89%) value financial advice that considers both business and personal needs, and 88% see value in working with a dedicated financial advisor who understands both. However, only 55% currently work with a financial advisor on both their business and personal finances.
While nearly all business owners (98%) surveyed – and all family business owners (100%) – said they re-evaluate their business decisions to ensure alignment with personal growth goals, about 40% do so rarely or rarely.
Additional findings include:
- Nearly two-thirds of business owners manage their business and personal finances separately.
- Managing cash flow (33%) and keeping pace with evolving technology (32%) are cited as the top business challenges.
- While 26% say it is challenging to balance business reinvestment with tax strategy, 40% are willing to sacrifice tax efficiency in favor of reinvesting in their business.
“Our research clearly shows that many business owners are seeking holistic advice that brings together their personal finances and business goals,” said Don Heberle, head of PNC Private Bank. “This highlights the importance of working with advisors who understand the complexity of managing both – and who can help owners make informed decisions that support long-term growth, succession and legacy.”
PNC research also examined business owner perspectives on succession planning, family dynamics, philanthropy and tax planning.
Succession planning emerged as a key priority, with 84% of family business owners saying a formal plan is essential for business continuity and almost the same number expressing that family dynamics influence exit and succession decisions. Of all business owners, nearly one-third (31%) do not have a plan. Common obstacles include lack of a clear successor, focus on daily operations, family conflicts, complexity of planning, financial uncertainty, and unclear long-term business goals.
“Exiting or making a change in a business is often one of the biggest and most personal and emotional decisions an owner makes,” Haeberle said. “That’s why it’s important for owners to have the right advisors and resources – to help owners navigate complexity, balance business and personal priorities, and achieve their goals.”
Philanthropy also plays a central role for many business owners. More than eight in 10 respondents (81%) said charitable giving is core to their business identity and legacy, and the same percentage structure their investment strategies to support philanthropic goals. While 80% believe it is important to involve the next generation in giving, only 43% currently do.
“Involving the family early and establishing a clear framework is important to ensure that the owner’s philanthropic vision moves forward,” Haeberle said. “When charitable giving is thoughtfully integrated into business and wealth planning, it becomes a lasting expression of values and a powerful part of the owner’s legacy.”
The full report can be viewed Here.