Across the U.S., small business owners are confronting a quiet but urgent crisis. According to new June 2025 data from Teamshares, more than two-thirds of small business owners expect to retire within the next two years. Yet nearly 70% of them have not developed or communicated a formal succession plan. This staggering disconnect could jeopardize not only their financial legacy but also the futures of employees, families, and communities. A qualified business succession planning lawyer may help you to understand the complicated legal and financial processes before it’s too late.
The Demographic Wave Hitting Main Street
America’s entrepreneurial class is aging. As Baby Boomers and early Gen Xers begin to exit their businesses, there’s a growing gap between ownership and preparedness. Many founders are emotionally and financially tied to their companies. But too often, their vision for what happens after they step down remains unclear, unstructured, or legally vulnerable.
This lack of succession planning creates ripple effects. Key employees may leave without clarity on the leadership transition. Family members may inherit business interests they’re not equipped, or even interested, to manage. In worst-case scenarios, businesses may close altogether, dissolving decades of hard work.
What Happens Without A Succession Plan?
Without a written and enforceable plan, business assets can become entangled in probate, family disputes, or mismanaged sales. Taxes and legal fees may eat away at the value of the business. Partnerships can dissolve, and customers may lose trust in the brand’s continuity.
Even companies with solid operations and healthy profits can falter if there’s no legal pathway for ownership transfer or leadership continuity. In the eyes of lenders, vendors, and insurers, the absence of a plan often signals instability. This could ultimately impact credit terms, contracts, and valuations.
Why 2025 May Be The Last Best Time To Act
With many federal tax provisions scheduled to expire in 2026, including the current lifetime gift and estate tax exemption, 2025 is a strategic window for business owners to finalize and fund their succession plans. Waiting could lead to higher taxes, more legal risk, and fewer choices.
And with the volume of retirements projected, businesses that wait too long may find themselves competing for the same limited pool of legal and financial specialists.
Quiet Opportunity, Loud Consequences
The coming succession wave is both a challenge and an opportunity. For those prepared, it can mean continuity, stability, and a lasting legacy. For those unprepared, it can mean legal battles, lost value, and closed doors. If you’re a business owner thinking about the future, or if you’re advising one, now is the time to start the conversation. Planning today could save a lifetime of achievement from being lost tomorrow.
Law firms that focus on transitions, estate structure, and long-term planning are invited to list their firm with Estate Planning Pros, a trusted resource hub for those managing succession and beyond. Add your name to a growing network of legal professionals making a difference where it counts. To learn more about how your law firm can contribute to shaping secure transitions for small businesses, contact our team today.