Baby Boomers Need to Start Planning Now to Distinguish Their Businesses from the Rest in a Crowded Marketplace

Posted by michael.wright@vann-group.com | June 18, 2015

Gary Ampulski, Managing Partner of Midwest Genesis, believes there’s an “Age Wave” bearing down on us like a tsunami with the potential to wreck any unprepared business, which he explained in a recent blog post, There’s a Prefect Strom Approaching for Exiting Business Owners.

People over the age of 53 own 70 percent of all businesses according to the US Census Bureau, and Ampulski paints a scenario where all of these business owners are relying on the sale of their businesses to fund their retirement or something else. The estimated cost of all those transactions is north of $10 trillion dollars, but currently there is only $535 billion in funds available to complete these transactions, which isn’t enough equity for 10 percent of these transactions –meaning supply will drive down value significantly.

However, it’s currently a seller’s market, but Ampulski believes it will sometime in the next three years. He highlighted three major factors impacting ownership: many businesses for sale, not enough funds to satisfy all the sellers looking to transact, and only three years left in current seller’s market.

If you wait for the “Age Wave”, only the best deals will be transacted (maybe top ten percent), and, according to Ampulski, be prepared to wait at least eight years if you miss the current sellers’ market.

If you want to sell your business sometime in the next eight years, he suggests establishing a sense of urgency, developing a road map to increase value now, creating focus priorities for the next 2-3 years, and getting help from an expert, like the Vann Group. If you believe you’ll be exiting your business, please look over our Exit services or  contact us at info@vann-group.com or by calling 413.543.2776, and we’ll be happy and answer your questions.

To read Gary Ampulski blog post, click here.