With the economy back on the rise, and confident buyers presenting themselves, it’s not hard to understand why there has been a surge in baby boomers are selling their businesses in preparation for retirement. In the first quarter of 2013, we have seen a jump of 56 percent in closed sales from the same time in 2012. Retirement was the number one contributor to small business sales, according to Pepperdine University, the International Business Brokers Association and M&A Source. “It was almost like a light switch went on in January,” says Michael Schuster, a broker with World Business Brokers in Miami. “We started getting a lot of activity with sellers who said, ‘I don’t want to go through another downturn or tough time. I want to see if I could sell my business.'”
The jump in sales has served Schuster’s brokerage well. They are now planning to open two more offices in Florida. 75 percent of the potential sellers are baby boomers, most of which don’t have a family member to continue the business in the future. Some want to completely rid themselves of their businesses, but others are only selling part of the business, essentially taking on a partner to help carry the weight.
Though the sales surge is nationally recognized, there are certainly concentrated pockets around the country where it is more successful. According to Dave Richards, owner of Keystone Business Advisors, the sales trend in California is a “slow pickup, not a huge spike.” He went on to say, “Baby boomers are where we’re really seeing the growth. It’s pent-up demand.” It may take some research to find the right buyer, but if you plan to sell your company and ease into retirement, this is a good time to consider it.
Source: NBC NEWS