Fact: 12 million baby boomers will attempt to transition from their workplaces in the next five to 10 years. This has significant meaning for the millions of families who could be impacted if business owners are not taking the steps to prepare their businesses for the mass transition.
Projection: There are nearly 80,000 million US baby boomers, so if we assume a typical rate of retirement, this population will retire at a rate of more than four million per year through 2029. With approximately 28 million small businesses, more than 70% will change hands in the near future, as most of these small businesses (defined by the Small Business Association as independent businesses with fewer than 500 employees) are family owned. Experts estimate that up to 60% could be acquired by third parties.
As the data suggests, and as we have seen among our own clients, a large concern for many small business owners is succession planning. Clayton & McKervey has worked with many small and family owned businesses as they navigate through these transition periods, and has helped clients prepare for a potentially dramatic shift. Our firm understands the risks of succession planning and we help our clients mitigate those problems before problems arise. Having a plan is the key to navigating these transitions, no matter which exit strategy you may be considering. Are you ready?
For more information on succession planning, contact Clayton & McKervey.