If you are in the market to buy an established business, you will likely have a range of opportunities in the near future. As the baby boomer generation reaches retirement age, those owning businesses have begun selling them at an increasing rate. According to a new study by Pepperdine University and a pair of trade groups, the number of business sales jumped 56% in the first three months of 2013, when compared to the first three months of 2012.
Experts say the increase in the number of businesses changing hands is due to two key factors: retiring baby boomers and the increased confidence in the economy at large. Many boomers selling their businesses say that the time is right because the economy is recovering and they are reaching the age where they don’t want to have to struggle through another economic downturn. Buyers, on the other hand, expressed confidence in the economy and believe that purchasing an established business is much safer than creating a new one from scratch.
For those who are hesitant at jumping into the waters, the chances that you will be able to find a business for sale sometime in the future remains bright. 10,000 baby boomers are retiring every day and will continue to do so until about 2030. Those owning businesses often say that family members are uninterested in maintaining the business, and many owners are looking to sell to third parties. Others who wish to retain an interest in the business are trying to find partners to share the risk.