The Massive Wave of Baby Boomer Business Owners Retiring And Placing Their Businesses Up For Sale Is Already Clogging Databases.
Competition For Buyers Is Fierce and The Landscape For Selling a Business Is Shifting Like No Other Time In History …
Are You Ready For It?
Research indicates that more than $10 trillion Dollars in Baby Boomer Owned Businesses will be passed down or sold by 2025.
According to BizBuySell.com, the nation’s largest online business sales database, the median sales price of a business is $200,000. By using simple math, it breaks down to a startling 50,000 Baby Boomer Owned Businesses will be coming on the market over the next 8 years.
Talk about a Coming Tsunami!
Now get this ….. according to the 2015 US Family Business Survey conducted by
PriceWaterhouseCoopers, 73% of private businesses Don’t Have a Clear Exit or Succession Plan – meaning about 36,497 businesses will come on the market with no plan whatsoever.
Personally, I think the numbers and percentages are a bit low because my office consults with approximately 100 businesses per year, and when we ask the question about a succession plan, less than 5 of them say yes, so I believe the number upwards of 47,500 businesses with no plan.
This is Unfortunate Because Trillions of Dollars in Value Will be Lost.
Exit planning is probably the single biggest challenge facing family-owned businesses today. And if the family owned business has multiple offspring and generations working in the business, it’s an even bigger challenge.
The Tsunami of Baby Boomer Business Owners Retiring and placing their businesses up for sale is creating a ‘Business Buyer’s Market’ like nothing we’ve ever seen before.
It’s wreaking havoc on databases and has made the competition for attracting ready-willing-and-able business buyers fierce, and will only get more so in the future.
Making matters worse, if you take any 100 business and put them up for sale, the results will be this:
So what does a business seller do?
The Answer Is Business Staging.
Only properly staged businesses with the most positive outlook and best books are attracting ready-willing-and-able buyers with CASH!
Business Staging, although a new concept in Business Brokerage is rapidly becoming a necessity.
Staging homes for sale has been around for about a decade, and can be done with minimal real effort. Check the curb appeal, add a few plants, pictures, maybe a sofa and paint.
Yet staging a business can take anywhere from one to three years.
When it comes to staging a business for sale, there is more that goes into it.
Below are 4 of the most important parts of the puzzle when it comes to properly staging a business for sale.
“The longer the spreadsheet, and the more explaining you need to do, the less you can expect to get for the business.” … Paul Forsberg
Business Staging = The Wave Of The Future.
Business Staging is going of be of paramount importance in the coming future because:
“To sell your business, or borrow money for any reason, you need to demonstrate to a buyer or a bank that you have a sales engine that will produce predictable, recurring revenue without your daily, active involvement.” Paul Forsberg
Business Staging is for the most part and unknown to most business brokers because it’s never been needed before.
Staging homes for sale was a closely held secret of residential home developers until the real estate crash of 2007. Then it was widely adapted and used in residential home sales. It’s only been around for about a decade.
For more information about staging your business, contact us.
We have been working with business staging methods for the past 18 months almost exclusively and have found exceptional results for our business sellers!
Paul Forsberg is a Business Growth Coach Who Specializes in Self Employed Business Professionals "Make The Phone Ring With Quality Leads, So They Can Get More Customers, & Make More Money." Author of the #1 Amazon Best Selling Business Book "The 5 Fundamental Elements of Every Successful Business .... Why Most Businesses Cannot Be Sold & What You Can Do About It." You can reach him by email at Paul@PBForsberg.com
Please log in again. The login page will open in a new window. After logging in you can close it and return to this page.