The Business Exit Tsunami is Coming!
Posted on December 7, 2014 by Shane Campbell
Inc. Magazine just completed a survey of the 2014 Inc. 500|5000 winners, of which B2B CFO® was one. I saw this graph and wanted to share it with you. 32% of the business owners are planning to exit in the next 1-5 years.
There are roughly six million employer firms in the US. If 32% of those businesses seek an exit in the next five years, that would be 384,000 companies that will go up for sale per year. That figure is remarkably similar to the 378,000 businesses per year predicted in our book “The Exit Strategy Handbook.” More importantly, this trend is expected to continue for the next twenty years as the “baby boomer” generation ages.
Why is that important? Because a typical year in the past would be for 24,000 such businesses to go up for sale. Going from 24,000 to 378,000 business available for sale means one thing – a buyer’s market. As a seller, how can these business owners meet their objectives in the face of a looming buyer’s market? Fortunately, that’s what we do at B2B CFO®.
Whether or not your business falls in the category described above, we may be able to help you in preparing and planning for an eventual exit from your business. Our Discovery Analysis is a free, no-risk opportunity to get the thoughts of B2B CFO®, the experts who wrote the book on exit strategies.
Give us a call to discuss your circumstances.