While many baby boomers have chosen to stay in the workforce longer, often because they don’t have the money to retire yet, others are choosing to get out while the economy is doing reasonably well. This is especially true of baby boomers with small businesses.
A new survey from Pepperdine University shows that retirement was the number one reason why the sale of businesses increased dramatically from 2012 to 2013. One study shows that there was a 56% rise in the sale of businesses during the first months of 2013 when compared to the first months of 2012.
Sales are so strong in some areas that business brokers are opening up new offices to take in all the interest from baby boomer owners. Many of these owners see the strengthening economy as an opportunity to sell their businesses at a good price. They are also expressing their desire not to have to see their businesses through the next economic downturn.
Would-be buyers are also encouraged by the strengthening economy, and many are more willing to put down the money to purchase a business that is already established. During a slow economy there are relatively few buyers, but buyers are now more interested than they have been in recent years.
Experts say that trillions of dollars worth of businesses will have to change hands over the coming decades as boomers step away and pass on the reins to others. Many of those business owners don’t have family members interested in taking over the businesses, so they are faced with a choice of either having to sell them or close them down.