The Covid crisis has pushed many wealthy business owners to hasten retirement and speed up succession plans, according to research by wealth manager and multifamily office Clarfeld | Citizens Private Wealth.

The "Success and Succession" study, which looked at the impacts of Covid on business decision making among high- and ultra-high-net-worth business owners, found that two-thirds reported that the pandemic accelerated plans to retire or sell their business.

The online study, conducted by Ipsos in July, surveyed 150 business owners with 2,500 employees, a net worth of about $2 million to $10 million and investable assets of more than $5 million.

The research found that, due to the pandemic, 21% of wealthy business owners applied for loans through the Paycheck Protection Program, 21% closed branches or satellite offices, 19% laid off employees and half of wealthy business owners planned to sell their businesses.

Further, it found that 70% of respondents planned leadership changes due to the pandemic-driven challenges. It also noted that 34% of respondents retired early and 35% accelerated their succession plans.

Most of the business owners (88%) plan to leave their businesses to a family member, including spouses, children and grandchildren. Many are confident (89%) that the next generation will be a successful steward of their business, the survey found.

And the next generation have become more welcoming of the opportunity to carry on the family business. The survey found that 21% of children or grandchildren who were previously uninterested in succeeding their predecessors are now on board with taking over the family business.

“Succession planning is a hugely crucial consideration for business owners looking to provide seamless continuity, especially in a volatile period,” Joannie Bozek, director of trust services and chief fiduciary officer at Clarfeld, said in a statement. “With the counsel of a trusted advisor, bringing family members and potential successors to the table for these conversations ensures accountability, interest and ultimately, a smooth transition when the time comes."

Wealthy business owners also had relocation on their mind as they weathered the challenges. Clarfeld found that, as of March 2020, 65% of respondents moved their businesses. Among those who made the move, 34% wanted to switch to lower-tax states, 31% wanted to be closer to family and 27% wanted to take advantage of the flexibility that comes with remote working.

Three-quarters of respondents see themselves moving their business in the next three to five years. The survey said 80% of business owners operated their businesses either fully remote or hybrid in-person and virtually throughout the Covid crisis.

Clarfeld noted that the business owners are not hastily making financial decisions related to the business. They indicated that they typically consider input from business partners (23%), wealth managers (19%) and accountants (13%). And 59% said their financial advisors also offered insight and expertise during the crisis and proactively approached them around succession planning changes.

Clarfeld | Citizens Private Wealth is a wealth management firm and multifamily office based in Tarrytown, N.Y.