About 10,000 Baby Boomers retire every day in America. Given that the youngest Baby Boomer was born in 1964, this number shouldn’t surprise anyone. What’s surprising is that Boomers will sell or pass on an estimated $72.6 trillion in wealth by 2045. A large chunk of this wealth will be in the form of small business ownership.
Today, Boomer-owned businesses are thriving. Boomers own 2.3 million small businesses. Over a third have been operating for over a decade, and 3 in 4 are currently profitable. Despite their solid foundation, most of these small businesses have no succession plan. Many owners say they don’t have a plan because they still enjoy running their company. Unfortunately, retiring isn’t always a choice. Many older people are forced into retirement by health issues. Treating health problems today is costly; up to $300,000 a year for retired couples. Retiring Boomer business owners often sell their business to pay for retirement.
Who do they sell to? Most of these small businesses are too small to attract private equity fund managers. Instead, Millennials today are increasingly looking to become their own boss. Buying an established business can be much easier than starting one.
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