Business Statistics

Baby Boomers Statistics

  • Baby boomers make up 33% (79 million) of the adult population
  • 80-90% of a business owners net worth is tied up in the business
  • Baby boomers own 635 of the private businesses in the USA
  • 4.5 M business and $10 Trillion in wealth transfer in the next 20 years
  • 78% of business owners have no transition plan, 83% have no written plan and 49% have no plan at all
  • First baby boomers turned 65 in 2011 and 10,000 turns 65 everyday, 25% have no formal estate plan
  • Over 2/3 of private businesses have owners 55 and older
  • 50% of all businesses fail after an owner’s death
  • 50% of all business owners exit their business through one of the 5 D’s

Business Succession/Exiting/Selling Statistics

  • A PricewaterhouseCoopers study of 300 business stated that 75% did not accomplish their personal and financial goals with the sale of their business. When asked what should they should have done differently. Better preparation!
  • 80-90% of a business owners net worth is tied up in the business
  • 4.5 M business and $10 Trillion in wealth transfer in the next 20 years
  • 78% of business owners have no transition plan, 83% have no written plan and 49% have no plan at all
  • 56% of owners feel that they have a good idea of the value of their business, yet only 18% have conducted a formal evaluation.
  • 12 months after selling 3 out of 4 business owners regret selling their business. Why? Poor life after business planning
  • 20-40% of businesses put on the market are transferable, however only 12% do transfer
  • Only 5% of businesses sell at their desired level
  • 95% of M/A professional believe a business owners unrealistic expectation of the company value are the biggest obstacle to the sale or transfer
  • 80%of businesses < $50 M put on the market do not sell
  • Family business survival rate 30% to second generation, 12% to the third, 3% to the fourth
  • over 2/3 of private businesses have owners 55 and older
  • The number one driver of business transitions each year, Retirement!
  • 63% of business owners are not familiar with all of their transition options
  • 50% of business owners desire to transfer to heirs in reality only 30% do
  • 78% have no established transition advisory team
  • 68% of business are organized as a LLC
  • 71% of are 1st generation owned
  • 60% of private businesses have no provisions if key personnel or shareholders get ill or die
  • 80% of business owners believe that maximizing sales price was NOT top priority
  • About 10% of small- to medium-sized businesses have, and use, a strategic plan.
  • 50% of all businesses fail after an owner’s death
  • 50% of all business owners exit their business through the 5 D’s