By 2045, Baby Boomers will sell or pass on an estimated $72.6 trillion in wealth. Their greatest gifts to the next generation are home ownership and small businesses. The latter is particularly crucial; Boomers own 2.3 million small businesses in the US. 75% are currently profitable. Who will own these businesses when the Boomer generation retires? It could be the Boomers’ children, but that’s not guaranteed. Millennials are less likely than prior generations to take over the family business. Instead, Boomers may decide to sell their businesses to fund their retirement.
Who will retiring business owners sell to? One option is private equity, but some businesses are too small to show up on their radar. Instead, entrepreneurial Millennials have the chance of a lifetime. Buying established businesses is less risky than starting new ones. Many are proven money-makers who need an owner to lead them into the future.
Infographic by: mbastack