Projections indicate that 2019 and 2020 are the years to buy or sell a small business. This is due to the fact that the number of businesses sold annually has been continuously increasing for the last five years. From looming retirement to the current political atmosphere, America is seeing substantial growth for small businesses - benefiting both buyers and sellers.
Americans born between the years 1946 and 1964 are considered Baby Boomers. In 2019, this makes them between the ages of 73 and 55 years old. With retirement starting at the age of 65, this means many reached this time by 2011. Currently, there about 76 million boomers in the US, representing 29% of the American population. As you can imagine, as more Baby Boomers begin to retire, more and more healthy businesses are up for sale. In fact, 60% of boomers will sell their business in the next two years.
If you are a Baby Boomer, now might be the perfect time to plan for retirement; for those looking to buy a business, keep an eye out for healthy businesses built on the backbone of great American hard work.
The Current Economy
You may feel a very specific kind of way about the current administration - agreeing or disagreeing with much of the social and cultural dichotomies that have spawned from it. However, one thing is certain, the economy is stronger than it has been for some time. The unemployment rate is lower than projected, adding a sense of security to both new graduates and seasoned professionals. Because of that, more Americans are feeling the itch to buy a business or sell theirs and enter a new market.
The presidential administration prioritizes reducing regulations for businesses, in an effort to help pump more money into the economy with fewer restrictions on where and how the funds should be spent. At the same time, as Democrats have taken control of the House of Representatives, small businesses are protected. How? Well, the two parties colliding forces moderate policy change which does not allow one side of the spectrum to outweigh the other. As the regulations incentivize consumers to spend, small businesses remain profitable. The current economy encourages business growth, making 2019 (and subsequently, 2020) the best year to either sell your business or invest in one.
Contact the business brokers with the experience to help you find the right business to buy, or find the right buyer for your business, Transworld Business Advisors Houston. Our team of professionals will help you determine if right now is the right time to buy or sell a business in your industry of choice - chances are, it is!