Baby Boomers Are Retiring: What Happens Now?
Did you know that baby boomers own 2.3 million small businesses? 75% of these businesses are currently profitable, but more and more of these business owners are beginning to retire. 58% of small business owners report not having a transition or succession plan once they retire, and this could lead to a significant loss of profitable businesses.
Small business owners who are ready to retire often have to sell their business if they have no succession plan. The money made from that sale can fund their retirement, but it is not an easy process. Many businesses are too small to be on the radar for private equity funds, and with global mergers and acquisitions falling it can be very difficult for baby boomers to sell their businesses.
The next generation can help the baby boomers fund their retirement while also increasing their financial gain by purchasing a small business from an owner. By 2045, baby boomers will sell or pass on over $70 trillion in wealth between their homes and small businesses. How this wealth will impact future generations is yet to be seen, but if millennials and Gen Z continue to operate these long standing small businesses, the wealth will only continue to grow.
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