TORONTO — The Canadian Federation of Independent Business says approaching “baby boomer” retirements will result in a huge transfer of business ownership over the next five to 10 years.
The association for small and mid-sized companies says its research suggests 47 per cent of business owners intend to exit their business within the next five years and 72 per cent plan to exit within 10 years.
The conclusions are based on an online survey of 2,507 small business owners conducted last May.
In four out of five cases, retirement was cited as the reason for the planned departure. Other reasons included a move to another venture or lack of profit in their current enterprise.
About 62 per cent of survey respondents said they’d rely on the sale of their business as a source of retirement income.
However, the CFIB says only 49 per cent of business owners have a succession plan — usually informal and unwritten.