{"id":728,"date":"2019-12-03T09:00:45","date_gmt":"2019-12-03T14:00:45","guid":{"rendered":"https:\/\/murphybusiness.com\/blog\/?p=728"},"modified":"2019-11-26T16:19:11","modified_gmt":"2019-11-26T21:19:11","slug":"wave-of-businesses-for-sale-linked-to-baby-boomers","status":"publish","type":"post","link":"https:\/\/murphybusiness.com\/blog\/wave-of-businesses-for-sale-linked-to-baby-boomers\/","title":{"rendered":"Wave of Businesses for Sale Linked to Baby Boomers"},"content":{"rendered":"

Over the next two decades, experts say that the U.S. can expect a record wave of businesses for sale. According to some, the size of this wave is so great that it can be more accurately described as a tsunami. And the cause of this wave? America\u2019s retiring generation of Baby Boomer business owners.<\/p>\n

Baby Boomers already make up an outsized portion of the U.S. population. As a result, America is expected to see a record-setting generation of seniors as the Baby Boomers retire.<\/p>\n

But for the number of Baby Boomers nationwide, this generation has an even larger presence among business owners. And as more Baby Boomer business owners opt for retirement, this will trigger an unprecedented number of businesses for sale.<\/p>\n

Baby Boomers Make Up a Large Share of Business Owners<\/h2>\n

To understand the scope of the issue at hand, let\u2019s quickly look at some data from the U.S. Census Bureau. According to data from 2018, there are now more than 70 million Baby Boomers in the U.S., more than 20% of the national population.<\/p>\n

The share of Baby Boomers in the U.S. is a big reason why the average age of a U.S. resident is now 38.2 years old. That\u2019s higher than any other time in the country\u2019s history and a full ten years older than in the 1960s and 1970s.<\/p>\n

These figures, however, don\u2019t even start to tell the story when it comes to small business owners. One 2019 study found that 57% of small business owners in the U.S. are currently over the age of 50. Others have found that, even now, Baby Boomers start businesses at a higher rate than any other generation.<\/p>\n

But nobody can run a business in perpetuity. As more and more Baby Boomers start to retire, we\u2019ll see more and more of these businesses for sale.<\/p>\n

In fact, figures released by the California Association of Business Brokers project that there will be more than 12 million Baby Boomer businesses for sale or bequeathed within the next two decades. The total value of these businesses? More than $10 trillion.<\/p>\n

What Makes These Businesses for Sale Different<\/h2>\n

As we see more Baby Boomer businesses hit the market, it\u2019s worth thinking about what makes this wave of businesses for sale unique.
\nEarlier this decade, before the Baby Boomer wave started, some experts worried that the glut of businesses for sale would result in an overabundance of supply, triggering a decrease in business values. But over the past few years, as the first Baby Boomers have reached retirement age, we\u2019ve seen the expected increase in business listings. But there\u2019s been no corresponding decrease in business values.
\nDuring this time, however, we\u2019ve seen other distinct trends among this first set of sales.<\/p>\n

In particular, many brokers have noted how Baby Boomer business sellers have put an increased emphasis on finding the right buyer. Many of these business owners are not simply trying to secure retirement incomes \u2014 they\u2019re also trying to secure a strong future for their company.<\/p>\n

As a result, they tend to be much more selective about who buys their business. What\u2019s more, because they\u2019re in less of a rush to sell, they can wait out unsatisfactory bids to find the right buyer. And when they\u2019ve found the right buyer, they\u2019re more willing to assist during the ownership transition. By lending a hand during the transition, they ensure their business is in the best possible position to succeed moving forward.<\/p>\n

Find businesses for sale with help from Murphy Business Brokers! Call (888) 561-3243 today to connect with your local office<\/a> and request a free consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"

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