Aug. 26, 2015—Baby boomers are selling their businesses to the next generation at a higher rate than in nearly a decade, according to a report by The New York Times. The number of small businesses listed for sale nationwide is at a six-year high, according to data from BizBuySell.com, an online marketplace.
The tally of completed transactions is also rising and the median sale price is up 12 percent compared with prices a year ago.
America’s improving economy seems to be the largest factor in the rise of businesses being sold. Bankers and brokers have reported a significant rise in sales from business owners in their 60s and 70s.
“Baby boomers who were going to sell got stopped in their tracks in 2008, 2009 and 2010,” said Lynn G. Ozer, president of government-guaranteed lending at Susquehanna Bank in lititz, Pa., according to the New York Times. “Things froze for a few years, then got better. In 2012, 2013 and 2014, they put together great years. Now, their books look good and they’re ready.”
A study by BizBuySell.com shows that selling of businesses is creating a shift in the demographics of business owners. The study found that 30 percent of buyers in the age range of 30 to 49 years old describe themselves as black, Asian or Hispanic, compared to only 8 percent of those over 65.
Women are also more prevalent in the younger generation of business buyers, with 9 percent of business buyers over age 65 and 20 percent of those under 49.
Looking to sell your business? Here’s some reading to get you started.
