Millennials are the latest good news for baby boomers in M&A

Baby boomers own 66% of the U.S. business market, with a majority of these businesses being healthy and thriving. However, as retirement age nears for baby boomer business owners, there is a concerning lack of attention on the future—60% of these business owners have no plans for succession or transition.

Many businesses in the M&A industry have been eyeing this trend with attention. Without an exit strategy, there is a high probability that many of these businesses will enter the market simultaneously at the last minute, flooding the market. However, as baby boomers approach retirement, they might not have to worry as much as they thought. There may be an age demographic coming to the rescue: millennials.

Why millennials want baby boomer businesses

Data shows that 61% of millennials have expressed that there is more job security in owning their own business than there is working for someone else. Recent reports have shown that millennials prefer working for smaller companies and taking on more responsibility than traditional attitudes that value working for large corporations. It’s important for millennials to feel connected with their work’s mission and values, and buying an already successful business could be the perfect way to do that.

Furthermore, millennials are beginning to grow aware of the upcoming opportunities within existing baby boomer businesses. And as millennials continue to age in step with baby boomers, business owners should consider millennials when planning for possible transaction strategies.

Preparing a baby boomer business for a millennial acquisition

Proactivity is key in preparing any business for sale. Preparation sets the business owner up for success, allowing them to sell when they want to, rather than when they need to. For baby boomers, in particular, the time to plan is now, before the market is full of competitive offers over the next decade.

If you’re interested in setting up an exit strategy to get the greatest value for your business, please contact us for a confidential discussion of your specific situation. We have experience helping business owners across a variety of industries sell their businesses, as well as relationships with buyers who are interested in new opportunities.