The number of small businesses coming onto the market has increased dramatically recently due in no small part to baby boomers eager to retire. A survey from Pepperdine University and two industry groups, M & A Source and the International Business Brokers Association, shows that small business sales have increased by over 50% in 2013 from the same time in 2012. Much of the increase can be attributed to aging baby boomers who are reaching retirement age who want to sell their small businesses.
For many boomers approaching retirement age, selling their businesses during the economic downturn was out of the question. Not only were buyers scarce, but would-be sellers couldn’t sell for the prices they wanted.
Now, as the economy is strengthening again, that pent up desire to sell is creating a massive influx of sellers, as well as a growing number of buyers eager to snap up the established businesses.
10,000 boomers reach retirement age every day, and will continue to do so for the next 20 years. Many of them find that their families do not want to continue to operate the small businesses they’ve begun. The only option for these boomers is to sell the business to other buyers or close it.
While some boomers say that they are interested in finding partners to share the risk because they want to continue working even after reaching retirement age, others see the strengthening economy as their best chance to step away now and obtain a reasonable price.