“My advice is to never do tomorrow what you can do today. Procrastination is the thief of time and money”— Charles Dickens
So you have thought about selling your business in a couple years? The Baby Boomer retirement trend is something definitely worth considering. Here’s WHY.
The Baby Boomers are turning 65 at a clip of over 11,000 per day. This trend will continue over the next 18 years. Professionals in the exit planning, business brokerage, and financial services industries have dubbed this “The Ten Trillion Dollar Opportunity”, because this will be the largest wealth transfer in the history of the United States. Just a few weeks ago BizBuySell.com said sales of privately owned businesses were up 54% in 2014 compared to the same time in 2013. This increase in business sales is unprecedented!! Retirement was the number one reason for those sales in the fourth quarter of 2014, according to a survey by Pepperdine University and two trade groups.
The U.S. isn’t getting any younger. Another study conducted by the United States Census Bureau says that 18.4 percent of the population will be more than 65 years old by the year 2020, which is 34 percent increase from 2000. Many of the Boomers are business owners. In fact 9 Million of America’s 15 million business owners were born in or before 1964, resulting in one business owner turning 65 every 57 seconds- and the potential for a MASSIVE flood of businesses for sale.
Now think about it. Suppose you would like to sell your business someday. Would it be easier to sell NOW, or after 2020 when there will be a ton of gray haired entrepreneurs ALL looking to do the same?
Only the savviest business owners are taking advantage of the current favorable market conditions- and they are cashing in BIG! With interest rates at rock bottom lows, low inflation, historically lower capital gains taxes, and higher overall business valuations now is the time to cash in and enjoy what you have worked so hard for. In Real Estate it is all about ” Location, Location, Location”, in business it is all about “Timing, Timing, Timing”. If selling your business is in the cards for the future, do yourself a HUGE favor and start planning now. Make a plan to beat the inevitable oversupply of businesses coming to market. Owners selling now are doing the victory dance, those that wait too long and fail to plan correctly will be doing the disappointment shuffle.
I know this sounds cold but it the truth! We are experiencing it first hand and the latest data confirms it. If there was ever an ideal time to sell, now is that time!
Call LISITEN ASSOCIATES NOW for a FREE Consultation 212 661-4160 Ext: 211