We are entering an interesting period for baby boomer business owners. As this generation starts to retire, it is estimated 12 million businesses will be up for grabs. If these businesses are not passed down through the family, they will need to find willing buyers. Historically, 30% of businesses that go on sale are purchased.
For skilled operators, acquiring an already lucrative business presents a significant opportunity. It is much less risky than starting from scratch since established businesses have a history of success. Major business schools like Harvard are increasingly recognizing this approach as a viable entry into entrepreneurship, and are increasingly offering classes on entrepreneurship through acquisition.
This approach is also attracting investors who recognize the low risk associated with this path to business growth. There are many funding strategies and techniques that can be employed to acquire existing businesses. In one of my next posts, I’ll discuss these approaches in more detail.
