ACG Cleveland Special Editorial 2022: The challenges of baby boomer business succession

The Boomer generation is the second-largest American generation, born between 1946 and 1964, with a population of about 72 million people. The baby boomers hold one of the largest pools of wealth, much of which was generated from privately owned businesses — and about 40% are small business owners. This will create a massive business shift. It is more important than ever for family owners to prepare for the future.  

Many are multi-generational firms, which started 40-plus years ago, with the second generation doing what many of us did — they sent their children to colleges and assisted them in “moving up” by becoming a doctor, lawyer or another education-based professional. Rarely are the boomers’ children planning to return to the small local company that replaces gutters, cleans furnaces or sells fishing bait.  They have, with family support, moved “up” and will not be there to take over for the next 40 years.