The “Seller Tsunami” is a term used to describe the wave of baby boomer business owners who are expected to exit their businesses in the coming years. As baby boomers reach retirement age, many of them are looking to sell their businesses and retire, which is expected to lead to a surge in business sales.
This trend is driven by a number of factors, including the aging of the baby boomer generation, the desire to retire and enjoy their golden years, and the need to plan for their financial future. Additionally, many baby boomers who own businesses may be looking to sell as a result of changing market conditions, such as increased competition or changes in consumer preferences.
The Seller Tsunami is expected to have significant implications for the business world, including a large influx of businesses on the market, increased competition for buyers, and potential changes in the way businesses are valued and sold. It may also create opportunities for new entrepreneurs and investors to acquire existing businesses and take advantage of the expertise and experience of retiring business owners.
Overall, the Seller Tsunami is a significant trend that is expected to impact the business landscape for years to come.
The above paragraphs have been touted for over a decade but let’s peal back the onion on these folks…these business owners were in their 50’s and 60’s in 2008. This was the time when there was a real estate boom and things were all rainbows and unicorns…and then boom. The Great Recession occurred….many many of these business owners took it on the chin.
Entrepreneurs in my experience particularly the small Main Street businesses usually have bad financial planning and quite often go all in on get rich quick things like flipping houses etc. Risk, Hedging, diversity of portfolios all are singularly uncommon in my experience. Im not going to drill down on why but take note….2008 hit. It decimated many many Business owners who had either all their money in their business or had bought real estate which collapsed.
The net effect is we saw a lot of “I’ll just keep it and rebuild it” . Health failing, slowing down, etc ….no factor. They were in effect backed into a corner and had to hold their cards and keep it to rebuild value. Fast forward…the world as it does improves and then …..Covid. Another punch in the mouth. Like a boxer in the ring they got a left and a right. And now inflation and a tightening lending market.
I opine on this simply to attempt to educate business owners to see the signs and time their exit but also to point out the importance of business owners to diversify their business and financial models. Everything comes in ebbs and flows….getting out before the crash is smart…cause liquidity when things get stupid is power.
For more on business buying and selling contact Michael Shea P.A. at 321-287-0349 or email mike@tworld.com .