JPMorgan Warns 12 Million Small Businesses at Risk of Changing Hands

JPMorgan Chase & Co., the largest bank in the US, is sounding an alarm about a looming succession crisis among small business owners. According to a report set for release on Monday, roughly 12 million businesses could change hands over the next decade as Baby Boomers retire without a clear plan for their companies.

The study found that 70% of 1,000 surveyed business owners are in the early stages of succession planning, while just 8% say they have reached an advanced stage. JPMorgan's CEO Jamie Dimon emphasized the initiative's goal of supporting small businesses through financing and other resources, with a plan to lend nearly $80 billion over the next 10 years.

The issue extends beyond owners simply preparing to exit; many are unsure of their long-term plans or intend to close their businesses rather than sell or transfer them. This transition is particularly pronounced in critical industries where more than half of firms have an owner age 55 or older, highlighting a succession gap that has also surfaced among companies focused on helping retiring owners find buyers.