Boomer-Owned Businesses: Bringing Wealth to the Next Generation
By 2045, Baby Boomers will either sell or pass on $72.6 trillion in wealth. Were that wealth divided equally among the Gen X and Millennial populations, that’s an average of $220,000 per person. A large portion of this wealth exists in the form of small businesses scattered around the nation. What will the greatest wealth transfer in history mean for the future of business ownership?
Right now, Baby Boomers own 2.3 million small businesses. 75% of them are currently profitable. At the same time, 10,000 Baby Boomers retire every day. What happens when Boomer business owners retire? Most of them don’t have a transition plan; there’s no guarantee the owner’s children will take over. Given the high costs of healthcare and long term treatment, some Boomers may sell their businesses to afford comfortable retirement.
Who will Boomer businesses sell to? Their businesses are golden investment opportunities for Millennials looking to become their own bosses. Established businesses are often easier to maintain than new ones. For Millennials with the skills and experience, a flourishing local business can be the ticket into wealth. The outgoing owner just needs to make sure they have the right tools in place (read more) and to know that their business will be in good hands.