baby boomers

Baby Boomers Are Selling Their Small Businesses

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Baby Boomers getting ready to retire are driving an upsurge in the sale of small businesses.

What do small business owners do when approaching retirement age? They start dreaming a new dream. They want to enjoy the fruits of their labor.

Anyone who’s ever owned a business knows it’s a 24/7, 365-days-a-year proposition. It’s a “the buck-stops-here,” flat-out, full responsibility lifestyle. It may have been exciting and rewarding all these years, or not. But when one reaches a certain point in life, a boomer’s fancy turns to thoughts of taking it easy; getting out from under the burdens of the business’ personnel administration, financial headaches, the never-ending wooing of potential customers and maintaining their patronage, the interminable paperwork, to say nothing of the day-to-day running of the business – i.e: doing whatever it is you do to make money and keep your doors open. So, many baby boomers, especially those without willing and able heirs to take on the family business, start looking for a buyer.

And now that the economy is on the upswing, there are buyers. According to BizBuySell.com, in the first three months of 2013, the number of completed sales more than doubled from the same period in 2012. Sales rose 56%!

An article from NBC News states that retirement was the #1 factor in business sales in the last three months of last year and the first three of this year. Retiring Baby Boomers ready to move on to the next phase of their lives are overwhelmingly on the selling end of these transactions.

If you’re thinking about selling your small business, your timing may be just right.

  • Three-quarters of small business sellers are baby boomers on the brink of retiring.
  • More and more buyers are confident enough in the expanding economy to grow their businesses through acquisitions.
  • Prediction: Trillions of dollars in business value will change hands in the next 10-20 years.
  • Health-care related business, such as medical billing firms, pharmacies, and even medical and dental practices are particularly in demand.
  • who were sitting on the sidelines during the recession are ready now to take the plunge and acquire a small business who were sitting on the sidelines during the recession are ready now to take the plunge and acquire a small business already in operation in order to expand their company.
  • Buyers are willing to pay more if a deal will quickly get them into the markets they want to serve.
  • Growth companies are commanding almost 15% more than they were four years ago. But prices are still low enough to appeal to buyers.
  • Florida appears to be the hottest market.

California sales are slower, but baby boomers selling their small business are where the growth is. “It’s pent-up demand. ss already in operation in order to expand their company.

Buyers are willing to pay more if a deal will get them into the markets they want to serve quickly.

Growth companies are commanding almost 15% more than they were four years ago. But prices are still low enough to appeal to buyers.

Florida appears to be the hottest market.

California sales are slower, but baby boomers selling their small business are where the growth is. “It’s pent-up demand.

Wherever you live, the economic climate appears to be warming up, and you may be in the right place at the right time to start your

 

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