I recently noted that in IBBA's MarketPulse (fourth quarter 2012), it was reported that for the first time in history, baby boomer retirement is the number one reason driving owners to exit their businesses in the lower middle market sector. The Pew Research Center in the US estimates that from 2011 for the next 19 years, 10,000 baby boomers a day will reach the age of 65. In 1971, 6.8% of Quebec’s population was 65 years or older. In 2006, 14% and by 2056, 28% of the population will be 65 or older.

Boomer business owners are beginning understand that perhaps it is now the time to consider selling their businesses, as there will be less and less younger people willing to buy them. What might be some of the other market factors motivating owners to consider selling?

  • I’ve read that the second highest reason for selling is burnout
  • Businesses are slowly becoming more confident in both the North American and global economies
  • Year over year gross revenues continue to grow, although at a slower pace
  • Moderate employment growth is forecasted to continue for the next several years
  • Many owners may not want to struggle through the next downturn, fearing that it might occur in the not too distant future, and that given the market instability, money in their pocket right now is appealing

Each day more and more business owners are wrestling with the decision of how to perpetuate the businesses they have grown or what to do with it as they prepare to exit. Working together with an impartial and objective advisor can make this happen in an orderly way. Entrepreneurs are typically great with entrance strategies, but terrible with exit strategies. Time marches on and so do we. Isn’t it always a good time to be a little bit more proactive than reactive?

For more information contact:
Stephen Reisler, CM&AA

Tel: 514-842-3911 ext 228