Local communities and the U.S. economy (along with most other economies around the world) are dependent on small and medium-sized businesses. Historically, they are the source of new jobs and the primary vector through which money is injected into local economies. But a troubling trend is underway. While there are a number of ways our economic development program can be utilized, there is one area that is beginning to impact nearly every community in the United States and outside our borders as well. As a result of the below trends, there is a near universal need for our Commonwealth Group BDC concept wherever small businesses are critical to a local economy. Here is what is happening:
- Approximately 40% of the family-owned businesses in the United States are expected to experience a leadership change in the next five years due to baby boomer retirements.
- At least 6 million small businesses will be facing a sale in the next five years. That averages over 100,000 per state.
- Baby boomers are retiring at the rate of 65,000 per day.
- Almost $5 trillion in liquidity is expected to be created as baby boomers transition out of their closely held businesses to retirement.
Numbers like these could spell trouble for anyone trying to sell a small business and for the communities that depend on their businesses. Now Commonwealth Group has developed a solution that works for everyone — sellers, buyers, investors and communities. More