Because of uncertainty in economy, small business owners, ages 46 to 64, across North America are delaying the selling process of their business.
As per a recent study by PriceWaterhouseCoopers, 1 in 2 small to large businesses would change hands between 2006 and 2016. But as per the survey conducted by The Growth Coach which is a national franchise of small business coaches shows that the recession has resulted in many small business owners to claim sales revenue below $5 million and less than 100 employees to back step their selling plans and to delay retirement. This is mainly due to negative impact of degraded business performance which would have near-term selling price of their business.
As per the survey results, about 50 percent of The Growth Coach business coaches who responded to the survey expressed that there is delay in selling of businesses by the baby boomer small business clients because of recession. They also reported that less than 10 percent of baby boomer small business owners are expecting to sell their business in the upcoming 5 years.
- About 25 percent of small business coaches reported that the main reason for selling their business is to encash and collect the equity.
- 23 percent of the small business owners are simply wishing to retire.
- Almost 28 percent have agreed that the small business owners are setting aside about 2 years to properly get ready to sell their business.
- About 28 percent of them are wanting to sell to third party buyers who are non-competitors.
- Just 14 percent of them are expecting to sell to family members.