Succession planning is often one of the last things business owners prioritize—but the case can be made for putting it first. Unfortunately, many only begin thinking about it when it’s too late. With this in mind, we pose the question: How well does your family communicate about succession and leadership transition?
Entrepreneurship, while inherently risky, offers the promise of financial security not only for the current generation but for those to come. It can pave the way for multigenerational wealth and open the door to increased capital investment and long-term ownership. However, when family enterprises fail to communicate a clear path for leadership transition, they risk losing the very wealth and stability they worked so hard to build—not just for their families, but for their communities as well.
In the coming years, a large wave of Baby Boomers is expected to retire, creating a significant shift in business ownership often referred to as the “Silver Tsunami.” This term describes the anticipated transfer or sale of businesses owned by individuals aged 55 and older—these businesses represent an estimated $1.3 trillion in payroll receipts. Yet, according to a 2023 study by Project Equity, 60% of these business owners do not have an exit plan in place. This reality places succession planning at the heart of economic development. By initiating conversations early and often and conducting research and outreach that emphasizes the importance succession planning, we aim to help families preserve the legacy of enterprise-ownership for generations to come.
