Key Takeaways:
- Nearly two-thirds of small business owners find the succession planning process overwhelming.
- It’s estimated that only 30% of small businesses successfully sell, leaving 70% of small businesses without a buyer or successful plan for what happens next.
- Teamshares has an 80% close rate on signed LOIs.
- The median purchase price of businesses listed on BizBuySell in 2022 was $315,000.
- Teamshares has acquired over 82 small businesses across 29 states and 40 industries for a median purchase price of $2,000,000.
With nearly 50% of America’s workforce employed by small businesses, the success of these long-standing fixtures is paramount to local and national economies. Unfortunately, today’s small businesses face a succession problem that threatens their future in their respective communities.
Finding a successor when an owner retires is vital to the future of any small business. Yet nearly two-thirds of family-owned businesses don’t have a documented or communicated succession plan in place. Moreover, of the over 200,000 small businesses that are listed for sale each year, only 30% ever find a buyer.
If a small business doesn’t find a buyer, they are often forced to close their doors, leaving a hole in the local economy and community. At Teamshares, we’re helping change that.
Our vision is to be a permanent home for thousands of great small- and medium-sized businesses, helping them become employee-owned and creating $10 billion of stock wealth for hard-working Americans.
Learn more about small business succession planning statistics and the importance of having a succession plan.
Importance of succession planning
With over 36 million small businesses in the United States, they are the backbone of the U.S. economy.
But what happens to these small businesses when an owner retires? What happens if someone in the owner’s family doesn’t want to take over? What happens if a small business can’t find a buyer? Or what happens when a successor isn’t capable of leading the business? In these cases, small businesses—even long-standing, successful ones—are often forced to shut their doors.
To better understand the impact small businesses have on the economy—and the greater impact of those businesses failing—it’s important to look at succession planning statistics through the lens of how many people small businesses employ.
- According to the Small Business Administration, there are 36.2 million small businesses in the U.S. (SBA, 2026).
- The Small Business Administration also estimates that there are 62.3 million small business employees in the U.S. (SBA, 2026).
- Small businesses employ roughly 46% of the U.S. private-sector employment and represent 43% of gross domestic product (SBA, 2026).
- 40% of small business owners plan to retire in the next decade, but 70% don’t yet have an exit plan (Chase, 2026)
In addition to not having a clear plan for what happens next, small businesses that haven’t begun planning for succession are at risk for devastating losses in unexpected circumstances like the sudden death of an owner or a fractured family relationship.
- Family-owned businesses employed 42.3 million workers in 2021 (SBA, 2024)
- 58% of Baby Boomer business owners expect to exit within five years (Exit Planning Institute, 2023)
- It’s estimated that only 30% of small businesses successfully sell, leaving 70% of small businesses without a buyer or successful plan for what happens next (Exit Planning Institute).
Small businesses looking to sell face a sizable hurdle, as high acquisition costs are a major barrier to entry for most buyers.
- 45% of brokers say current lending conditions are making deals harder to complete (BizBuySell, 2026)
Acquisition costs are just one of the many hurdles small businesses face when looking for a buyer. Teamshares has committed capital in place and doesn’t use outside investors to fund individual purchases. We have no financing contingencies and can move independently, quickly, and efficiently.
Small business succession planning trends
Succession planning statistics reveal that many small business owners are reaching retirement age and planning to sell. However, selling a small business is far from simple and, even with a succession plan in place, many small business owners face an uphill battle to sell their business.
- Retirement is the leading motivation for owners looking to sell at 45% (BizBuySell, 2026)
- 54% of small business owners say they have a formal succession plan, but 62% find the succession process overwhelming and 53% say they’re lacking the guidance they need. (Bancorp, 2026)
- Only 8% of small business owners say they’re fully prepared to transition ownership (Chase, 2026)
- The median sale price of closed businesses in 2025 was $350,000 (BizBuySell, 2025).
Succession planning statistics show that small businesses, while a vital part of U.S. and global economies, are facing a critical situation. By transitioning to a model like employee ownership through Teamshares, these businesses can ensure that they survive the next generation and never have to be sold again.
Are you an advisor, broker, or business owner that needs an exit plan to keep your company and employees in place?
How Teamshares is changing succession statistics
Small business succession planning is more than just selling your business when you retire. It’s about creating an exit strategy that takes into account your community, your employees, and the emotional transition of selling a business you’ve worked so hard to create.
It’s about establishing a legacy.
As one of the largest buyers of small and medium-sized businesses in America, Teamshares is the buyer of choice for retiring owners who want to leave a legacy and ensure the financial future of their employees.
Since we were established in 2019, our experienced team has purchased more than 90 businesses across 35 states and in over 40 industries. Our succession planning statistics speak for themselves:
- Teamshares has an 80% close rate on signed LOIs.
- The average company revenue at close equals $5.25 million.
- The average company EBITDA at close equals $496,800.
- The median purchase price is $2.0 million.
- The average number of employee-owners per company is 32.
Small businesses are indeed the backbone of American communities. At Teamshares, it’s our goal to keep them as fixtures in their local communities and ensure they never have to be sold again. If you’re a broker, advisor, or a selling owner, find out if Teamshares is the right buyer for your business.
