According to US Census Estimates, more than 65% of businesses (with employees) are owned by those in the Baby-Boom Generation. That equates to something like four million companies owned by Boomers in the United States.
As such, Boomers, much to their dismay, are getting older and retiring. In fact, 10,000 boomers become eligible for retirement every day! And while many of this generation are likely to keep working well into their 70s, they are transitioning into different roles and selling or handing down their businesses to their progeny.
What does this have to do with environmental issues? Plenty!!!
Environmental Regulations Have Changed
Consider that when many of these Boomer entrepreneurs began their companies, many environmental regulations may not have existed. If the regulations were in place, they have likely changed significantly in some cases over the ensuing years as all regulations have grown increasingly complex.
Further, the environmental due diligence guidelines associated with transferring property have changed very substantially over the past several years, and some due diligence issues are currently in flux.
The upshot is there may be a number of “environmental unknowns” lurking and waiting to be uncovered as these four million company owners begin to prepare for business transition. We have seen these “unknowns” slow, interfere, and in some instances stop the family business transition due to the financial and liability implications. Accordingly, it is imperative to have an appropriate strategy.
While Dragun can help you with the environmental issues (Compliance and Due Diligence), the issues are more varied than “just” environmental.
Family Business Experts and environmental issues
Regarding the issues of succession and transition that confront family-owned businesses, an excellent resource is “family business expert,” Don Schwerzler, founder of the Atlanta-based Family Business Institute and their web organization, Family Business Experts. Don has some worrisome “war stories” on family-business succession problems tied to environmental issues, as well as some cautionary tales that should be of interest to every family-business owner. If your family business is doing succession planning, and the process has stalled due to a question or a concern about an environmental issue related to your family’s business, you can contact Schwerzler confidentially using the Ask the Family Business Expert form, a value-added service for family-owned businesses.
As the four million Baby-Boomer business owners consider transitioning their business ownership, it would make sense to seek wise counsel now to avoid major headaches as that retirement day approaches.
If you have questions about the business transition, I am confident that Don can help guide you (Family Business Experts), and if you have questions about environmental compliance or environmental due diligence, contact Jeffrey Bolin, M.S, CHMM (jbolin@dragun.com) at 248-932-0228, ext 125.