Finding the right exit strategy for a small business owner can be one of the most daunting tasks around. Not only is the owner making a significant financial decision but they are also hugely involved in a very emotional way. Here are a few of the top reasons why boomers finally decide to sell:
Advancing age – The term “baby boomer” no longer denotes an up-and-coming youth. Instead, the entire generation is now approaching their fifties and sixties. For better or worse, they have decided that now is the time to cash in on the success of their business and sell. Somewhat ironically, it is simply not as fun running a successful business as it once was in originally building it.
The market is good – Conversely, many business owners recognize that the market for selling a small business has not been this good in two decades. Selling now in 2015 simply makes good business sense – and isn’t that sense what made the owner a success in the past? According to BizBuySell Insight Report, small business sales are up 6% and that just means more dollars for the owner who sells.
Interest rates are low – Obviously, it takes a buyer as well as a seller to consummate a small business sale. Interest rates remain at an almost all-time low and thus make buying a small business a far more attractive prospect than in the past. With relatively inexpensive loans to be had, sellers are willing to spend that little bit extra to make the deal happen. It is a win-win situation for both buyers and sellers.
Too much success – This reason may sound like an oxymoron, but some businesses simply outgrow the capabilities of their owners. While still considerably successful, the business needs to bring on more seasoned management to continue its growth. In the long run, it is probably in the owner’s best interest to divest himself – completely or to a large extent – of the business. Everyone from the lowliest employee to the owner will be better served.
Family Issues – Many business owners are intensely concerned about the future of their business and, more importantly, their families. Many choose to transition the company to their children or other, younger relatives while they still have time to mentor them. A timely sale gives them plenty of time to spend with the next generation – or two! – in both a professional and personal capacity.
A final thought – As a small business owner, you thought that you would leave your business to a friend or a family member with the idea that they would continue to run your legacy. Times change, however, and now may be the best time to sell. If you get a decent price, you will then have time and resources to establish another legacy, one that your family and friends will cherish all the more.
For more information on selling your small business and other related topics, please visit us at Sunbelt Atlanta. You can always find us online at sunbeltatlanta.com or reach us directly at 770-936-9099.