In the United States, Baby Boomers own 2.3 million small businesses. Many of their businesses are proud, profitable staples of the community, employing 25 million people and supporting tens of millions more vendors, suppliers, and freelancers. Given that 10,000 Baby Boomers retire every day, it’s natural to wonder what will happen to a business when its owner retires.
Most Boomer business owners don’t have a succession plan for their company. They enjoy running it too much and can’t imagine giving it up. Unfortunately, not every retirement is a willing one; many are forced into retirement by health complications. Because Millennials are less likely to take over family businesses, Boomer business owners may need to sell in order to afford long term care.
Selling a small business isn’t always easy. Many are too small to attract the attention of private equity firms. However, Boomer owned businesses tend to be a good investment. They have local customers and cater to a market with established demand. For Millennials looking to become their own boss, buying an established business may be a better option than starting one. Business owners typically want sellers with experience who will keep existing employees on the payroll.
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