The Silver Tsunami Impact on Business Sales
Baby Boomers was the namesake given to the large generation of babies born following World War II, between the years of 1946 and 1964. In 2021 this generation is made up of people between the ages of 57 and 75. As the Baby Boomer population grew into adulthood they became known for their wealth, social activity, and physical fitness especially when compared to past generations. This was a generation that grew up believing and expecting the world to improve and become a better place to live and thrive within. They enjoyed peak income levels and indulged well in the finer things in life often leading them to be criticized for their excessive and consumer-based lifestyles.
Now that this generation has reached retirement age they will yet again be making a large impact on the economy and market trends.
Time flies when you are having fun!! But now you should be thinking about selling your business in the next 1 to 5 years. But you should know that now is the time and you should wait. As the number of retiring baby boomers increases there will be more small businesses flooding the market... we call it the Silver Tsunami. Imagine you decide to sell your business a couple of years from now, at the exact same time everyone else in your age group is putting their business on the market. It is simple supply and demand. If there are more businesses available than buyers, the price you will get will decline. But if you are wise in your business exit planning, like you have been in starting and building your business, you will start now to cash out and avoid Tsunami.
If you are a business owner enjoying your best year, right now in 2021 is a seller market. Why? Three reasons. First, the economy is unpredictable but right now we are coming out of a recession, so business performance is improving vs declining. It is getting more difficult to predict the business cycle. Second, as we mention baby boomers are retiring, but also entrepreneurship is on the rise. There is a lot of money saved up that is ready to invest in good businesses. Finally, the SBA has created great incentives to help people acquire businesses. Using other people's money helps good businesses get higher value in the market with list risk to the business owner. The bottom line is now is the time, but are you ready to act?
My advice... create your exit plan now and get professional help to value your business and find qualified buyers for your business. Transworld Business Advisors or ready for the Silver Tsunami. We have been helping the business owner sell their business for over 40 years. We have a network of buyers looking for good businesses. We have the training and resources to manage the sales process to the closing table. So don't let the Silver Tsunami take you by surprise. You have been warned!!
If you are considering developing an exit plan for your business you should take the following actions:
- Try our business calculator to determine an approximate range of business value'
- Follow us on Linkedin, Facebook, Google My Business
- Schedule a complimentary consultation now
Schedule a complimentary consult to get a valuation on your business so you have the right information to make the right decision on timing. Then when your ready let us help you find the right buyer at the right price. Call 770-766-9855 or email email@example.com to schedule a consult.
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Karl Barham is the President of Transworld Business Advisors of Atlanta Peachtree. In his role, he oversees a team of brokers professionally trained to advise and sell small to medium size businesses each year. His focus has always been on support small business owners to make decisions on growth and exit strategies for their business. If you are interested in buying or selling a business contact Transworld Business Advisors of Atlanta Peactree today!