The critical role of business succession planning in preserving and expanding generational wealth

Business succession planning is a critical step for small business owners, but limited time, resources, and/or access to expert guidance often leads them to overlook or avoid it—threatening their ability to build and preserve generational wealth through a successful ownership transition. This blog post is part of a Wealth Building Month series highlighting how JPMorganChase is helping communities overcome barriers to wealth creation and preservation and access pathways to financial security.

Small and mid-sized businesses are the backbone of our economy, and owning a business is a powerful engine for building and sustaining generational wealth. For many small business owners, their company is more than a source of income—it’s a reflection of years of hard work, a commitment to employees, and a cornerstone of their community. Yet, when it comes time to step away, too many owners find themselves unprepared for the transition, risking not only their own legacy but also the financial stability of their families, employees, and communities.

Business Succession Planning: An essential step for wealth building

Over the next 10–15 years, as Baby Boomer business owners continue to retire, an estimated 12 million businesses—representing $10 trillion in assets—are expected to change hands. Despite this massive transfer of wealth, nearly 60% of business owners have no formal succession plan, and only 30% of family-owned businesses successfully transition to a second generation. The consequences of this looming “Silver Tsunami” are significant: businesses without a clear plan risk closing, resulting in lost jobs, diminished local economic activity, and a missed opportunity to build and expand generational wealth.

Business succession planning isn’t just a distant concern—it’s an ongoing process that ensures business continuity, protects jobs, and secures the legacy owners have worked so hard to build.

By the Numbers:

• 75% of all business owners are looking to exit their business within the next decade.
• $10 trillion in assets are expected to change hands.
• Nearly 60% of business owners have no formal transition plan.
• 70–80% of businesses that go on the market will never sell.
• Only 30% of family businesses successfully transition from first to second generation ownership.

How JPMorganChase is tackling the succession planning challenge

At JPMorganChase, we recognize that preparing business owners for ownership transitions—and supporting them throughout the process—is essential to building resilient communities and preserving and building generational wealth. Our approach is multifaceted, combining business solutions, philanthropic investments, research, and policy advocacy to help owners plan for the future and position the next generation to succeed.

• Expert Guidance and Resources: Demystifying succession planning, encouraging early action, and connecting owners with financial, legal, and operational expertise.
• Facilitating Connections: Leveraging our networks to help owners find buyers or successors through intergenerational transfers, business sales, mergers and acquisitions, and employee ownership options. This includes lifting up two groups that are often overlooked as potential new owners: current employees and aspiring entrepreneurs who are disconnected from existing business networks. By expanding the range of options, we help create wealth for new types of buyers.
• Comprehensive Support: Through JPMorganChase’s Private Business Advisory Solutions, Wealth Management, and integrated banking services, we offer deep expertise in business and exit planning, valuation, tax and estate planning, and more.
• Philanthropic Investments: Building on our $4.5 million commitment in 2024, we are announcing more than $11.5 million in new grants to expand education and support for business succession planning and ownership transitions, with a focus on employee ownership, and entrepreneurship through acquisition. New commitments include:
  • $4,040,000 to New Majority Capital (NMC) to support their business succession planning and entrepreneurship through acquisition accelerators, including expansion to Los Angeles. NMC’s programming helps business owners prepare for a transition and helps aspiring entrepreneurs acquire a small business.
  • $3,700,000 to Project Equity to lead the EO Equals Initiative to expand awareness of, and access to, employee ownership for both business owners and employees. In collaboration with the Employee Ownership Expansion Network (EOX) and the Purpose Trust Ownership Network (PTON), EO Equals incorporates outreach and awareness-building efforts, accredited training for advisors, new product development, and expanded access to business succession planning and employee ownership transition resources.
  • $2,100,000 to Impact Charitable to launch a fund which will offer forgivable loans to help aspiring entrepreneurs and business owners cover the upfront costs needed to qualify for an SBA loan to buy a business.
  • $750,000 to Achievers Network to support the expansion of their entrepreneurship through acquisition accelerator to North Carolina—in collaboration with Mountain BizWorks—Los Angeles, and additional cities.
  • $500,000 to Ownership Works to expand partnerships with companies and investors to provide all employees with the opportunity to build wealth at work through broad-based ownership.
  • $250,000 to the Iowa Center for Employee Ownership to support business succession planning and employee ownership education and training for Iowa-based small businesses, employees, and students.
  • $250,000 to Lafayette Square Institute to accelerate the adoption of broad-based employee ownership across the U.S. by addressing key barriers through data analytics, policy analysis, and education.
• Policy Advocacy: Supporting bipartisan policy opportunities to provide business owners with tools, capital, and incentives for successful transitions.

Securing your legacy—One business, one family at a time

Succession planning is a critical part of every business owner’s journey. It keeps businesses in communities, preserves jobs, diversifies ownership, and creates wealth-building opportunities for current and new owners. At JPMorganChase, we are committed to helping business owners take control of their future and ensure their businesses thrive for generations to come.

Building and preserving generational wealth requires more than financial products—it depends on sustained investment in access to resources, knowledge, and opportunity. As we celebrate Wealth Building Month, we reaffirm our commitment to supporting small business owners in planning for the future and helping families and communities build lasting wealth.

For more information on how JPMorganChase continues to support businesses as they scale and plan for growth, visit: https://www.jpmorganchase.com/impact/business-growth-and-entrepreneurship