BRATTLEBORO — People ages 60 and older own nearly a third of private businesses in southeastern Vermont. Many lack a succession plan.
Concerned about the potential consequences of loss of businesses and jobs, the Brattleboro Development Credit Corporation (BDCC) is focusing on succession planning.
With a grant from USDA Rural Business Development, this fall BDCC launched REGENER8, a program to support business owners seeking an exit and prospective business buyers seeking an exciting opportunity.
“We became focused on this issue a few years ago because of the risk but also because of the tremendous opportunity business ownership offers to individuals,” R.T. Brown, who runs REGENER8, said in a news release.
“Small companies play a huge role in our economy. What's really special about this program is it's the first time we've set out to support both sides of the deal,” said Brown, the director of business acceleration and community capital development at BDCC.
Vermont is known for high levels of entrepreneurship. But with an aging population, many small business owners are nearing retirement.
More than 500 businesses and 5,000 jobs in the Windham region are estimated to be affected in the coming decade. Businesses owned by boomer entrepreneurs tend to be larger and have more employees. This means a large share of the economy is at risk if succession is not successful.
Preparation for ownership transition takes time and, in many cases, expert assistance. Often, entrepreneurs find themselves desiring a quick exit, especially if events such as illness or COVID-19 create hardship. But if a business isn't ready for sale or a buyer is not identified and ready, succession can fail and result in stalled retirement plans or even business closure.
On Thursday, Jan. 14, BDCC will hold an information session for potential business buyers.
Participants include Don Jamison from the Vermont Employee Ownership Center, Tammy Richards from Country Business Inc. (the region's top business brokers), and Attorney David Dunn of Phillips, Dunn, Shriver & Carroll in Brattleboro.
An event that BDCC recently held for sellers covered the role of brokers and other technical assistance providers such as lawyers and accountants.
Multiple scenarios were outlined, from transition to family members or to employees, as well as purchase by an outside individual or entity. The event featured William Daley, owner of Vermont Country Deli, who provided an inside, up-close view of the business sale process.
Potential business buyers are invited to attend the training event on Jan. 14, from 10 a.m. to noon, via Zoom. You can register at brattleborodevelopment.com, or contact Brown at rtbrown@brattleborodevelopment.com or 802-257-7731, ext.221.