In the United States, Baby Boomers own 40% of the country’s small businesses and franchises. 35% of them have been in operation for longer than 10 years, and 75% are currently profitable. These are amazing success stories that serve as everyday reminders of the American dream. Tens of millions of Americans rely on income (direct or indirect) from a Boomer-owned business.
At the same time, 10,000 Baby Boomers retire every day. What happens to their boomer businesses when retirement age hits? A majority of small business owners have no succession plan. The owners’ Millennial children may take over, but that’s not as guaranteed as it was in past generations. Today offers a wider array of career choices for young people. Instead of keeping the business in the family, many owners may decide to sell to fund a comfortable retirement.
Who do retiring Baby Boomers sell businesses to? Many of their operations are too small to catch the attention of private equity. Yet to a middle-aged professional ready to become their own boss, buying an established business is a major opportunity. Boomer businesses come with local brands and loyal customers. Purchasing a Boomer’s business can be the golden ticket to wealth.
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