The baby boomer generation just recently began hitting retirement age, and as more and more of them begin leaving the workplace they are also leaving behind a lot of “Business For Sale” signs. A new study shows that in the first three months of 2013 the number of businesses sold increased over 50% from the same period in 2012. Experts say that the combination of thousands of baby boomers retiring every day and a growing number of people with more confidence in the economy has likely led to the increase.
Many baby boomer sellers have family members that aren’t interested in taking over the business. Instead of closing the business down, these boomers are looking for outside buyers who can take over and keep the business afloat.
Experts say that the increase in sales as the economy gets better is common because many sellers are eager to sell when the market is good and aren’t willing to face another economic downturn.
Experts also say that in the coming decades, trillions of dollars worth of businesses will pass from baby boomer owners to new owners. Many medical and healthcare related businesses, such as pharmacies and medical billing firms, have seen the most interest because of the aging population and the perceived increased need of these services in the near future. Other types of businesses, such as retail stores or restaurants, have seen lower interest from prospective buyers.
The current climate means that business buyers have a range of choices, while sellers have numerous potential buyers.