Why It’s The Best Time Ever To Buy A Business

If you are ready to make the leap into business ownership, it’s show time.

According to a number of sources, the improving economy, along with the ballooning number of baby-boomers ready to sell have spiked the inventory of businesses for sale. But experts warn you have to act fast.
The 90’s were booming times for launching new business launches and purchases. There was a surplus of people in their 40’s and 50’s scratching the itch to own their own enterprises. Now its 20 years later and those same entrepreneurs are reaching retirement age.

The number of small businesses listed for sale is at a six year high according to industry experts and the number of completed deals is rising as well, along with the median sale price, which is up 12 percent compared to a year ago, a reflection of the improving economy.

While the climate for sales slowed from 2008-2010, the expanding economy from 2012-2014 have turned around the books and allowed boomers looking for a retirement landing spot to put their businesses back on the market.

There are some sharp demographic differences between buyers and sellers according to Bob House, General Manger of BizBuySell.com, and a DIY website, which recently conducted a wide ranging survey of the transaction marketplace. “Sellers tend to be Caucasian Males while the buyers are younger and increasingly diverse”.

The study noted that more than 30% of new buyers identified themselves as black, Asian or Hispanic. In addition, more than 20 percent of new buyers under 49 were women. There is a significant opportunity among veterans. The Bizbuysell.com survey indicates that 12 percent of sellers and 10 percent of buyers have served in the armed forces.

The survey notes that profile of the small business seller reflects the demographics of the baby boomer generation:
• 79% are between 40 -70 years old
• 78 % are male
• 35% are college graduates/24% have post graduate degrees
• 29% of sellers have no degree
• 80% are married/10% are divorced.

The seller market still lacks wide diversity. Almost 75% are Caucasian, 10 percent Asian/Pacific Islander and five percent for both Hispanic and African American.

One other important finding: Small business is very much family business. Almost 40 of seller have a parent or grandparent who owned a business, and 16% have both a parent AND grandparent who ran a enterprise, In addition, 58% of those selling their business have owned an additional business in their past. Those who are “serial entrepreneurs” tend to value their businesses at more than $1 million.

Almost half (49%) of those who participated in the Bizbuysell.com survey planned to sell their businesses in the next five years. So obviously, now is the time to act.

To learn what the process looks like from the buyer’s perspective, register for our free webinar "Buy Your Perfect Business" here.