As the economy remains uncertain, baby-boomer small business owners, ages 46 to 64, across North America are delaying the process of selling their business, despite national statistics showing otherwise.
A recent study by PriceWaterhouseCoopers reported that one out of two small to large businesses will change hands between 2006 and 2016. However, a survey conducted by The Growth Coach, a national franchise of small business coaches, indicates that the recession has caused many small business owners, claiming sales revenue under $5 million and less than 100 employees, to push back their selling plans and delay retirement. This is due to the negative impact degraded business performance will have on the near-term selling price of their business.
According to the survey results, nearly 50 percent of The Growth Coach business coaches that responded to the survey report that the recession has delayed their baby-boomer small business clients' plans to sell their business. They further reported that, additionally, less than 10 percent of baby-boomer small business owners are planning to sell their business in the next five years. That indicates the vast majority of small business owners are planning to delay an exit strategy until beyond 2015.
“We survey our coaches quarterly on various topics to help us stay in touch with small business trends and gain insights to becoming better coaches for our clients across North America,” said Dan Murphy, president and co-founder of The Growth Coach. “Most surprising was that small business owners’ feedback countered other national business trends. We now know that our small business clients are recalibrating their business plans to reach their pre-recession goals before seriously thinking about selling their businesses. The recession deeply impacted small businesses and put exit strategies of various owners on hold.”
The Growth Coach survey also indicated that of those baby-boomer small business owners thinking about selling their business:
- 25 percent of their business coaches report that the primary reason for wanting to sell their business is to cash out and collect the equity.
- 23 percent simply desire to retire.
- 28 percent agree that small business owners are setting aside at least two years to properly prepare their business for the selling process.
- 28 percent are looking to sell to third-party buyers that are not competitors.
- 14 percent are looking to sell to family members.
The baby-boomer generation has been one of the most entrepreneurial generations in U.S. history. During the last 30 years, more than five million businesses with annual revenues ranging from $1 million to $75 million were founded. The majority of these business owners are now 50 years old or older.
The Growth Coach specializes in providing affordable group coaching workshops to business owners and executives utilizing its proprietary Strategic Mindset® process. In addition, they provide face-to-face coaching, Coaching Club (tele-coaching), as well as coaching entire sales teams and management teams to be more effective with a strategic-focusing process. All initial coaching services come with a 100 percent money-back guarantee. The coaching process helps clients gain clarity about where they want to go, develop continuous action plans to get there, and receive on-going accountability to stay on track.
Clients of The Growth Coach include small business owners, franchisees, self-employed professionals, high-end sales and financial services professionals and managers from businesses of all size. Through an expanding national accounts program, The Growth Coach serves franchise systems, dealer networks and associations. With a presence in more than 150 markets across North America, The Growth Coach encourages diversity within its franchise system, as well as the development of small business and franchising worldwide. Currently, The Growth Coach is a member and/or affiliated with the following professional organizations: International Franchise Association, SBA Franchise Registry, VetFran and Minority Fran, and the company is listed in Bond’s Minority Franchise Guide, 2010 AllBusiness.com AllStar Top 300 Franchises, and Entrepreneur’s 2010 Franchise 500®.
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