Baby Boomer Business Succession Crisis: $10 Trillion Opportunity
, by Tyler Nix, Gungnir Group
Baby boomers own roughly 12 million US businesses worth an estimated $10 trillion. Most have no succession plan. Here is what this means for sellers and buyers.
Frequently Asked Questions
- How many businesses will change hands due to baby boomer retirements?
- Estimates vary, but most research points to 8-12 million businesses owned by baby boomers in the United States. The Exit Planning Institute estimates that over $10 trillion in business value will transfer over the next decade as this generation retires.
- What happens to a business if the owner retires without a succession plan?
- Without a plan, most businesses are either sold at a discount under pressure, wound down and closed, or transferred to family members who may not be equipped to run them. A proactively managed exit typically yields 30-50% more than a reactive or forced sale.
- What types of businesses does Gungnir Group acquire?
- Gungnir Group acquires businesses across ten sectors: business services, specialty trades, commercial maintenance, GovCon and technical services, industrial services, distribution, niche manufacturing, healthcare administration, testing and inspection, and software-enabled services. Our target is $700K+ in annual cash flow at a valuation at or below 4x.