Business owners frequently approach exit planning much like a new personal fitness routine. They know it is necessary, but it always seems to be something that can be put off until tomorrow.
For the Baby Boomers (born between 1945 and 1964), tomorrow is already here. “Baby Boomers” make up 25% of the U.S. population, but own over 60% of our small businesses. From 1975 until the middle 1980s, boomers opened new businesses at a rate never seen before, and not duplicated since. Now is the time for these boomers to exit their businesses.
Today, over 5 million Baby Boomers are preparing for retirement. Much like the “floods” they created when they all went to college, started new businesses, and became prolific consumers, they will create a flood of small business sales in the United States.
The younger generation that is now reaching ownership age (the presumed buyers or successors of a boomer’s business) is much smaller, and less inclined to entrepreneurship than the boomers. They are also being hotly pursued by corporate America, which needs to replace their retiring generation of boomer managers and executives. These three factors combine to create a “perfect storm” of competitive pressures when marketing a small business for sale. This perfect storm makes selling or transferring a business today much more challenging than it was in the past. Are you ready?
We are offering a FREE tool to help you measure your readiness. The 15 minute ExitMap® questionnaire is the first step in a successful transition plan.