Tom Norwell has been a leader in the Retail and Franchising industries for over 25 years both in Canada and Australia. Tom became a Boardroom Metrics Accomplished Executive in September of 2010.
IS THE VALUE OF YOUR BUSINESS ERODING SIMPLY BECAUSE YOU HAPPEN TO BE BORN BETWEEN 1946 AND 1964?
Think about this;
There are almost 2 million Canadian businesses owned by Boomers, two thirds of those Boomers will contemplate retiring and “transitioning” (selling; to a 3rd party, family member, or employees) in the next 10 years. That will represent the largest number of business transactions in the next decade than at any other time in history. Over half a million!
So, what happens when supply out strips demand? Do you think that values will decrease? Simply put, there’s just going to be fewer buyers and more sellers. Compounding the issue is that 80% of those Boomer companies don’t have a plan, do you? Statistically the 20% that do have a plan only 1 in 3 actually transact.
Further to that, what happens if these 90% of Canadian businesses don’t transact? Do they just shut down? Even if half continue to operate, then the loss of even half a million businesses could represent more than 10% of Canada’s GDP and 15% of the work force. That’s a scary thought.
Not only will entrepreneurs, who poured their best years into a business, be faced with a diminished value because of ‘supply and demand’ but our country could be faced with a dramatic change to it’s economic landscape.
Something to think about! But don’t think too long, … … …you’re not getting any younger!
My colleague Michael Mangialardo has presented a compelling platform in Tick Tock – Is Time Running Out For Canada’s Baby Boomer Business Owners http://www.boardroommetrics.com/library/presentations.
An article in today’s Globe and Mail by Tracy Tjaden is right on point! http://www.theglobeandmail.com/report-on-business/your-business/business-categories/the-pitch/cashing-out-get-the-best-price/article1939265/