1
1
By Michelle Lopez
A generational shift is quickly gathering force across the U.S. economy and is poised to transform the small business landscape: the wave of baby boomer entrepreneurs retiring in the coming years. According to a report from Guidant Financial, about 41% of small businesses are run by owners over the age of 55, with an average 10,000 boomers retiring per day. Whether business owners plan to sell off, or leave the business to family, preparations may already be long overdue.
"Succession planning is not a fire drill, it's a strategy," said Seema Pissaris, clinical professor of international business at FIU Business. "Too often, owners wait until they're forced to act, when a downturn or health crisis forces their hand. At that point, their options and their leverage are limited."
Business owners should be aware that the consequences of delaying succession can be severe. Without a clear exit strategy, a business can struggle to sell, drop in valuation, or in the worst cases, shut down entirely. And in family businesses, the emotional ties and generational dynamics add even more complexity.
Alfredo Lardizabal (BBA '94) knows this story intimately. He is the CEO of MIC Food, a Miami-based tropical frozen food company his father founded in the 1980s after identifying a gap in the market: the absence of high-quality, frozen Latin American foods like maduros and tostones. With industrial engineering training and a passion for innovation, Lardizabal's father built the business from shipping a single container of tostones to a multi-country operation supplying Goya and other major brands.
But building a business is one thing; passing it on is another.
"My siblings and I joined one by one," Lardizabal said. "I gave up a soccer scholarship and transferred to FIU so I could start working. My father didn't pay us at first, he gave us room and board. We just believed in his dream."
Eventually, all six siblings entered the business. Their father, seeing their commitment and individual strengths, gently nudged each toward their natural role. One gravitated toward finance, another toward logistics, and Lardizabal, with his love of people and persuasion, took to sales. The structure worked, for a while.
"Succession planning is not a fire drill, it's a strategy. Too often, owners wait until they're forced to act, when a downturn or health crisis forces their hand. At that point, their options and their leverage are limited."
– Seema Pissaris
When their uncle, who was managing the production plant in Honduras, passed away unexpectedly, their father relocated there to oversee operations. Suddenly, the leadership of the commercial side of the business based in Miami was up for grabs.
"We realized we needed help," Lardizabal said. "We were all doing our part, but there was no formal process for decisionmaking. So my father brought in a consulting firm that specialized in family businesses."
That move, he says, changed everything.
Alfredo Lardzibal Sr. and wife Cirabel (front center), Alfredo Lardzibal (back center) and his five siblings.That decision set the stage for a formal transition plan, including leadership coaching, DISC personality profile assessments, and eventually a vote of confidence that installed Lardizabal as CEO, a job he initially resisted.
"I didn't want it," he said. "But I saw the need. The business needed someone to lead."
Now, 12 years into the role, Lardizabal has introduced modern governance practices, including a family council, annual retreats for third-generation stakeholders and an external advisory board. Experts say these structures help align values, define rules of engagement and prepare younger generations to take the reins.
According to Ricardo Newark, a consultant with the Florida Small Business Development Center (FSBDC) at FIU Business, many local businesses aren't nearly as prepared.
"South Florida has a high concentration of small, family-run firms, many started by immigrants replicating a business they or their families had at home, or in some cases venturing into new areas," Newark said. "These owners are proud and resilient, but few have formal succession plans, and even fewer know the value of their business."
That lack of planning leaves companies vulnerable. Without clear documentation, clean financials, or an identified successor, businesses often struggle to sell or must do so at a deep discount. Worse, if an owner dies or falls ill unexpectedly, years of hard work can unravel overnight.
"I've seen businesses close their doors because the family couldn't agree on who should take over," said Erick Marenco (MIB '14, BBA '12), a Miami-based business broker and managing partner at Suncoast Business Consultants. "Or worse, they waited too long to sell, and by then, revenues were down and buyers weren't interested."
Buyers, Marenco added, are increasingly savvy and selective.
"They're looking for solid books, stable revenue, and minimal owner involvement," he said. "If one person is doing everything and nothing is documented, that undermines confidence in the business's operational resilience."
He encourages owners to start grooming their business for sale at least two to three years before they plan to exit. That means not only getting the financials in order but also locking in customer contracts, streamlining operations and potentially hiring leadership talent who can take over.
For many owners this means letting go emotionally and operationally.
"Too often, the founder tries to hold on too tightly," said Pissaris. "That undermines the next generation's ability to lead. And sometimes, the next generation doesn't even want it."
Other warning signs include over-reliance on a few major customers, weak leadership benches and no growth strategy. "Know your worth and what's dragging it down," she said. "Clean up the books, reduce personal expenses, document key processes and start tax planning."
Pissaris recommends consulting with a CPA and tax lawyer to structure the exit in a tax-friendly and legal way – otherwise net proceeds can be much lower. Setting the right structure can take time.
Even seemingly minor steps like writing employee contracts or renewing supplier agreements can boost a business's valuation.
Not every business will stay in the family, of course. For many baby boomer owners whose children aren't interested in taking over, the best option is to sell to an outside buyer. That's where, Newark notes, a major opportunity lies for millennial and Gen Z entrepreneurs.
"Buying an existing business can be less risky than starting one," said Pissaris. "But buyers need to do their homework."
She recommends hiring professionals for financial and operational due diligence and looking for "underpriced value" such as outdated branding, legacy tech systems or family drama that may create buying opportunities.
"You want a healthy business with room to grow," she said. "Not one you'll have to rebuild from scratch."
Marenco agrees. His firm matches retiring owners with ambitious, strategy driven acquirers, whether platform companies executing roll-up or bolt-on approaches, buy and build investors, or focused strategic buyers.
"We're seeing a wave of finance - and tech-savvy professionals eager to build wealth through acquisitions," he said. "They don't need to create the next breakthrough app – they can acquire an existing business and optimize it for growth."
Marenco said that today's buyer market is especially robust. Online platforms such as BizBuySell, BizQuest and LoopNet have become premier marketplaces for exploring listings in South Florida and beyond. However, he emphasized that sourcing the right opportunity is only half the equation; being financially ready to move decisively is equally critical.
"Buyers should have their financing firmly secured up front. We always advise clients to initiate the funding process before identifying a target, otherwise, a better prepared competitor may beat them to the deal."
"We always advise clients to initiate the funding process before identifying a target, otherwise, a better prepared competitor may beat them to the deal."
– Erick Marenco
Marenco cautions against relying on widely circulated social media claims that you can effortlessly acquire an SBA preapproved listing with 10% seller financing and 90% SBA 7(a) funding. While you might get lucky, the odds are stacked against you. If a shortcut seems effortless and everyone's talking about it, ask yourself, Do I truly possess the credentials, minimum capital and operational expertise required to pull it off?
He emphasizes that, although the SBA 7(a) program is a powerful acquisition tool, applicants must satisfy both its general eligibility criteria and the specific requirements tied to purchasing an existing business. These are benchmarks that many first time buyers simply aren't positioned to satisfy.
For transactions that exceed typical SBA parameters, or simply to strengthen your bid, Marenco recommends partnering with private investors or other capital providers to bridge funding gaps and reinforce your competitive position.
While the wave of retiring boomers could wipe out many unprepared businesses, it could also fuel a renaissance of reinvention, as a new generation steps up.
"The transition doesn't have to be scary," said Newark. "It can be a celebration of what you built and what comes next."
As more baby boomers prepare to retire, tens of thousands of businesses will face the same questions: Who will lead next? What is the business really worth? And how do you preserve the soul of something you've spent a lifetime building?
As Lardizabal put it: "Succession isn't just about naming a successor. It's about preserving the soul of a business — and giving it a future."
