U.S. Bank Survey Reveals Succession Surge as Gen Z and Millennials Prepare to Buy Businesses

A Rift in Readiness

While more than half of U.S. small-business owners are over 55, only 54 percent have crafted formal succession plans. At the same time, 36 percent of Gen Z and Millennial owners intend to acquire a business from retiring owners—more than double the rate of their older counterparts. This highlights a growing mismatch: younger entrepreneurs are ready and waiting, yet preparation on the other side remains inconsistent.

Unspoken Concerns Among Sellers

A significant number of existing owners view succession planning as overwhelming (62 %), are uncertain about receiving a fair valuation (56 %), and lack resources or guidance (53 %). In fact, over 60 percent report that retirement timelines have accelerated in recent years.

Timing Is Approaching

Nearly four in ten owners (37 %) intend to sell within a year, a figure that climbs higher among younger owners (41 %) compared to Gen X/Boomers (33 %).

Legacy Still Matters

Despite growing challenges, most business owners remain deeply committed to their ventures. Approximately 85 percent began their businesses to create something they could pass on, and 84 percent to build generational wealth. A strong majority, 86 percent, plan to continue working as long as possible, and 87 percent hope to leave a meaningful legacy.

Economic and Technological Tensions

Owners face widespread stress: 98 percent cite general economic concerns, with inflation and supply costs at 92 percent; competition also rates at 92 percent. Funding, cybersecurity, consumer spending, and tariffs are additional major stressors. Despite this, 96 percent consider their business successful, and 88 percent experienced growth in the last year.

Generative AI: Aid or Anxiety?

Almost 60 percent are currently using or plan to use generative AI in areas such as marketing, content creation, and analytics. While 81 percent admit keeping pace with technology causes stress, 56 percent fear their business could be displaced by automation. Yet, the perceived importance of digital tools rose sharply from 72 percent to 87 percent in a single year.

Modeling Optimism

Two-thirds of respondents, especially younger ones (74 %), believe the U.S. economy is moving in the right direction. In contrast, only 52 percent of Gen X and Boomers share that sentiment

Why It Matters

This survey reveals both a promise and a risk: Gen Z and Millennials are eager and prepared to acquire businesses, but many retiring owners lack the confidence or tools to transition effectively. With restless retirement timelines and shifting generational aspirations, the window for effective succession is narrowing.

Without proactive planning, small businesses risk stalled growth or loss of value during transitions. Institutions like banks, advisors, and industry experts must step in with valuation services, succession guidance, and digital tools to support both buyers and sellers.

Conclusion

America’s small-business ecosystem stands at a critical crossroads. A generation of buyers is waiting, but a gap in readiness and resources could impede the transfer of ownership. Navigating this challenge will require collaboration, planning, and a sense of urgency so that tomorrow’s business leaders can build on today's entrepreneurial legacy.