It’s a remarkable statistic: people 55 and older own at least a percentage of over 50% of America’s small businesses. As many as 10 million companies – about 65-75% of all small firms – will likely be on the market in the next decade as baby boomers retire. Economists and the press refer to the coming disruption as a “Silver Tsunami”.
Due to this potential wave of available businesses, a buyer’s market is expected. Obviously, the advantages of acquisition could be substantial:
- Existing Customers: What could be better than having an existing base of buyers? Maintaining customers gives you a big head start, and a significant edge over startups.
- Immediate Revenue: An acquired business can generate cash flow from day one. This could be one of the most attractive features of acquisition.
- Brand Loyalty and Reputation: Your base – and even casual customers – recognize your brand identity and reputation. That’s a huge advantage in highly competitive business categories.
- Trained Workforce: The ability to maintain a team of employees who understand the ins and outs of the business and can keep things running smoothly on a daily basis is invaluable.
- Proven Business Model: Businesses planning for acquisition likely have a successful business model, providing the new owner with greater confidence in the venture’s viability and sustainability.
- Established Suppliers: Having access to a proven vendor network eliminates hours of research or trial and error to find the best suppliers for your business.
Both aspiring entrepreneurs and experienced acquisition pros can position themselves for success through purchasing an existing firm. Ready to make your move? First Internet Bank offers Small Business Administration (SBA) 7(a) loans to get you rolling on the road to success.
