Visioneers

As baby boomers retire, Main Street could face a tsunami of change

jatkinson — Mon, 17 May 2021 21:54:36 +0000

48% of Business Owners Who Want to Sell Have No Exit Strategy

jatkinson — Mon, 17 May 2021 21:52:22 +0000

Why this financial expert says the ‘silver tsunami’ of retiring baby boomers is a big business opportunity

jatkinson — Mon, 17 May 2021 21:39:07 +0000

According to a 2019 report from Guidant Financial, 57% of U.S. small businesses are owned by baby boomers who are nearing retirement. With over 30 million small businesses in the U.S., this means more than 17 million American businesses could potentially be for sale in the near future. And there’s more at stake with boomer-owned businesses than with their Gen X and millennial-owned counterparts. 51% of boomer-owned businesses are older than eight years, compared to 29% of Gen X-owned businesses and 18% of millennial-owned businesses – which means boomer businesses are most likely to have two or more employees.

Many exit planning and business broker firms predicted an onslaught of boomer-owned businesses would flood the market beginning in 2011, when the oldest boomers turned 65. However, the number of boomer businesses up for sale to date has yet to meet this forecast. Several factors explain this phenomenon. Chiefly, a majority of owners prefer to transfer their businesses to children or employees instead of selling to third party buyers. Another contributing factor: many boomers are choosing to work past age 65.

Could a silver tsunami sink Madison?

jatkinson — Wed, 12 Aug 2020 20:25:10 +0000

Madison has a lot of baby boomer business owners and leaders nearing retirement. Are they ready for the transition, and have they set up their organization for the next phase?s to make the remote-work experience productive and engaging — for employees and the organization.

On average, 10,000 baby boomers reach retirement age every day in the U.S., a trend that is expected to continue into the 2030s. Despite being a college town, Madison is not immune from this silver tsunami.

In Madison, 50.42% of business owners are over the age of 55 and 20.64% of those owners have no documented transition plan, according to research from Ready for Next Cities (RFN Cities), a preparedness and business retention program. That fact alone leaves Madison poorly positioned for the impending flood of retiring baby boomer business owners, based on RFN Cities’ disruption risk assessment.

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