Baby Boomers Slow to Sell Businesses as Retirement Looms
The small dip in transactions could indicate the large number of business owners who delayed selling during the recession may have now exited the market.The number of small business transactions in 2015 dropped 3.6 percent from 2014’s record high, according to BizBuySell’s 2015 annual and fourth quarter Insight Report. The small dip in transactions could indicate the large number of business owners delaying to sell during the recession may have now exited the market, and the market is left with a more stable, balanced environment. The last quarter of 2015 saw 1,683 closed transactions, a decrease from the 1,848 transactions in Q4 of 2014, but the median revenue of sold businesses reached a record $460,467, the highest revenue total since BizBuySell started tracking this data in 2007. "As business financials continue to improve and sale prices rise, we expect more Baby Boomers to feel confident they can sell at price that will afford them a comfortable retirement," Bob House, group general manager of BizBuySell and BizQuest, told eWEEK. "While it appears this generation is choosing to work longer than previous ones, at some point we do expect a larger influx of Baby Boomer businesses hitting the market."
House noted the financial crisis of 2008 and resulting Great Recession derailed many Baby Boomers retirement plans, explaining that some Baby Boomers planned to exit their businesses several years ago but were forced to delay due to the recession driving down prices.