One of the most consequential—and underreported—issues facing small businesses right now is succession planning. New Chase data reveals a striking gap between when owners expect to exit and how prepared they are to do so.
- 40% of small business owners plan to retire within the next decade.
- 70% are in early-stage planning or have no formal succession plan.
- Only 8% report being fully prepared to transition ownership.
- Many have yet to address key steps, including valuation, tax strategy, and identifying a successor.
When thinking about an eventual exit, owners are focused on more than financial return. 66% say both job preservation and maximizing sale value matter. 61% prioritize finding the right next owner. Regional priorities differ: in Detroit, 70% rank job preservation as a top concern; in Salt Lake City and Austin, maximizing sale value stands out; in New York City and San Francisco, owners are especially focused on maintaining their role as community anchors.
Access to guidance matters enormously. Owners who do not engage with an expert—such as a banker or financial advisor—are 4 to 8 times more likely to remain in early planning stages. The percentage of owners considering hiring a financial advisor rose to 53%, up from 27% in 2025.
With an estimated 2.3 million small businesses nationwide owned by aging boomers preparing to retire, the stakes of this transition—for jobs, local economies, and community anchors—could not be higher.
The Rise of the Silver Startup
Baby boomers aren’t just worried about succession planning. Many are entering the market. On my website this week, Chris Flood, Senior Vice President & Chief Revenue Officer, Business Markets & SaaS at Verizon Business, talked to me about the rise of “Silver Startups,” citing data from Verizon Business’s 2025 State of Small Business.
This is underscored by a McKinsey Institute for Economic Mobility report, which estimates that $5 trillion of companies owned by baby boomers will be sold in the next 10 years. This “Silver Tsunami” will likely “reshape the economy.” But McKinsey points out that only a small number of these companies are “viable sale candidates.”
Bob House, the president of BizBuySell, says this gap represents “a looming challenge and a massive opportunity for small business owners.” House explains that the estimate from McKinsey “underscores why owners need to understand their business value early and actively improve it. That means strong performance and clean books, but also simple fixes like refreshed facilities or better customer records. Most importantly, the business must be able to run without the owner. And this shouldn’t only be considered at exit. Life events—disability, debt, divorce, distraction—can accelerate timelines overnight. The takeaway is to treat value building as part of responsible ownership, not a last‑minute exercise.”
Businesses May Be Harder To Buy
The businesses-for-sale marketplace is also a bit tumultuous. Jason Ward of TruView Business Advisors, quoted in the BizBuySell Insight Report for Q1, says, “It is a bifurcated market. Strong, cash-flowing businesses are in high demand, and the current environment clearly favors sellers. At the same time, businesses with flat or declining performance tend to face more scrutiny and longer timelines, creating a more favorable environment for buyers in those situations.”
Plus, the BizBuySell Insight Report adds, “With SBA loan qualifications becoming more rigorous, the pool of business buyers has attracted a more sophisticated group of players. Consequently, the small business marketplace has seen an influx of well-capitalized participants, including private equity firms, MBA graduates, and corporate refugees,” which could make it harder for millions of other potential business owners to buy a company.
Check out the BizBuySell Insight Report, as it’s filled with insights vital to business owners.
Rieva Lesonsky is the founder of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Curated Lifestyle for Unsplash+
