Baby Boomer Retirement: A Buyer’s Market
According to Statistic Canada, 70% of all business owners in North America are older than 54. The average retirement age is 63. A wave of boomer-preneurs is expected to retire in the next few years, meaning an unprecedented opportunity for those looking to acquire a business. The Canadian Federation Of Independent Business reports that at least $1 trillion worth of businesses will change hands in the next decade in Canada.
Replacing 70% of business owners in the next decade is not possible. Many businesses will be forced to shut down because the buyers won’t be there. Those that don’t may not get what their business would have been worth a few years earlier because buyers have so many options.
What does this mean for you? As the businesses of the baby boomers flood the market, you need to think about how you can protect yourself and get the most out of your business. If someone is interested in buying your business today, maybe it’s good timing and you should seriously consider the offer. You may also want to go to market sooner than later.
Even if you’re not planning to sell for another five to 10 years, it’s still important to prepare for succession now. With the wave of baby boomer retirement, mediocre businesses are virtually guaranteed to be un-saleable. Building value in your business is critical to compete in a buyer’s market.