Transora Partners Tackles America’s Small Business Succession Crisis

The United States is facing one of the largest economic transitions in modern history, yet it is receiving little mainstream attention. Millions of small business owners are approaching retirement age, and with few succession plans in place, the country could be on the verge of a major economic disruption. Experts warn that this small business succession crisis threatens jobs, communities, and trillions in enterprise value.

One firm that has identified both the scale of the problem and a potential solution is Transora Partners, a transition-focused private investment firm. The company, led by it’s Managing Partner, Tee Gwena is taking a novel approach to what is often referred to as the “silver tsunami of business owners.”

The Growing Wave of Retiring Owners

Small businesses remain the backbone of the American economy. According to the U.S. Small Business Administration, there are about 32 million small businesses nationwide. Of those, approximately 6 million employ staff, accounting for 62 million jobs across the country.

More than half of these employer businesses are owned by baby boomers, born between 1946 and 1964. That means around 3 million businesses employing 31 million people will need to transition in the coming decade. Collectively, these companies represent between $4 trillion and $6 trillion in enterprise value and generate over $5 trillion in annual revenue.

But the majority of these businesses are ill-prepared for succession. Research indicates that 80% of small businesses that go to market fail to sell, often because they were not built with a transition in mind. Without viable exit options, many owners shut their doors, leaving employees and communities at risk.

Failure To Plan

Several factors contribute to this looming crisis. A recent Gallup poll revealed that most small business owners lack a formal succession plan. The Exit Planning Institute’s State of Owner Readiness Report echoed these findings, showing that many entrepreneurs only consider transition when retirement is imminent.

Traditional business brokers have not filled this gap. Operating much like real estate agents, they earn commissions based on volume, not on helping owners strengthen their companies. Institutional private equity firms, meanwhile, rarely focus on smaller businesses. When they do, they typically target only the strongest, a small subset of the roughly 20% of companies that do sell when brought to market.

This leaves the vast majority of small business owners with limited options. As retirement approaches, many find themselves unable to sell, unable to pass the business on, and unable to access the value they spent decades building. The consequences extend beyond individual families, threatening local economies that rely on these businesses for jobs and tax revenue.

Transora Partners’ Transition Capital Model

This is the problem Transora Partners was founded to address. Rather than stepping in only when a business is already on the market, the firm partners with owners well before succession. Its approach combines two critical components:

• Strategic Advisory: Transora helps owners restructure their businesses, improve governance, professionalize operations, and align financial reporting with buyer expectations.
• Capital Investment: Through what the firm calls “Transition Capital,” Transora provides funding that enables owners to implement these changes. This investment enhances the value of the business and increases the likelihood of a successful sale when the time comes.

This dual approach addresses the core issue: most business owners lack both the knowledge and the capital to prepare for succession. By supplying both, Transora increases the odds of successful transitions and preserves the value built over decades.

A Distinctive Perspective

Transora’s managing partner, Tee Gwena, brings a background that sets the firm apart from others in the private equity space. While many investors follow a traditional path through investment banking and business school, Gwena began as an entrepreneur. He founded and scaled businesses in the automotive sector before moving into M&A advisory, where he helped clients sell their companies.

That experience gives him a unique ability to relate to business owners. “When you have owned and sold businesses yourself, you understand what it feels like to be in the seller’s shoes,” Gwena explains. “That perspective builds trust, and it helps create solutions that work for both owners and buyers.”

It also allows Transora to bridge the gap between advisory services and capital investment in ways that other firms typically cannot.

Why the Timing Matters

“The silver tsunami of business owners is no longer a distant forecast,” says Tee Gwena, Managing Partner of Transora Partners. With millions of baby boomer entrepreneurs nearing retirement, he explains that the succession crisis is already underway. “If the majority of these businesses fail to transition successfully, the economic consequences will be severe,” Gwena adds. Job losses, supply chain disruptions, and declining local tax bases are just a few of the risks.

At the same time, Gwena is quick to point out that the situation holds promise if managed correctly. “On the other hand, if succession is handled effectively, the transition can become a powerful opportunity,” he says. In his view, stronger businesses, better-prepared owners, and preserved community wealth are all achievable outcomes when the right strategies are in place.

Looking Ahead

The next decade will be pivotal for small business ownership in the United States. Whether the economy experiences widespread closures or successful transitions will depend largely on how well owners are prepared for succession.

Transora Partners sees this moment not only as a challenge but also as an opportunity to reshape the way small businesses transition. By combining expertise with investment, the firm aims to ensure that the legacy of America’s entrepreneurs is not lost but strengthened for the future.