Harvey Katz

Every exit strategy involves tradeoffs. Here is how the economics typically compare: By Harvey M. Katz | (Connect With Me), CMT Guest Contributor The Succession Challenge For physician-owners who spent decades building thriving practices, the question of what comes next — retirement, succession, legacy — looms larger each year. This issue is becoming more salient by the day because nearly half of U.S. physicians are 55 or older, and about 24% are 65 or above.

After years of historically low interest rates (which results in larger lump sum pension amounts), there have been significant interest rate increases during 2022. Prospects for 2023 are for more of the same. While many employers with underfunded pension plan plans will welcome decreases in liabilities, this is bad news for many closely held family businesses with key employee-owners who are fast approaching retirement.

Updated: May 25, 2018: JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.