There is already underway a shift in wealth totaling up to $100 Trillion (according to multiple sources) of assets that will be transferred from Baby Boomers to next-generation household by 2045.
Within that, an estimated $8 Trillion (according to multiple sources) of privately held business equity is going to change hands, transfer, or get passed down, sometimes quietly.
Time and time again, surveys confirm that business owners do very little long-term planning for the transfer or sale of their equity in privately held businesses. Some surveys quote that 90% of owners have no written plan.
Takeaways for business owners:
- Baby Boomers still retain ~68% of all U.S. household wealth
- Greater utilization of trusts, gift planning, and family offices is changing how wealth is sustained and transferred
- The $8 Trillion of privately held business equity, represents either a massive risk or a massive opportunity, depending on succession readiness
- Good planning and education is the key
- Contact an investment banker to get an updated valuation and proceeds analysis on the value of equity of your privately held business and get started on a plan. Chinook Capital Advisors specializes in helping business owners prepare for and execute successful transitions. Reach out to our team today to take the next step.
For more context on the historic shift in generational wealth now underway, click here to view this insightful New York Times article.
