As Canada greys, more business owners are looking to sell
This is an unprecedented time in Canadian business.
Businesses are starting to change hands more and more, passing from a greying Canada into the hands of a younger generation.
A study done by the Business Development Bank of Canada underscores this, pointing to a massive turnover in the ownership of small businesses over the next five years.
“Four out of 10 entrepreneurs in Canada plan to step away from their businesses,” says BDC.
“In fact, small and mid-sized business owners are older than the rest of the workforce.”
Consider this: Canada’s median age has climbed from 35 years in 1996 to 41 in 2016, and will reach 44 in 2031, according to Statistics Canada.
Look at a few more numbers:
• Almost 60 per cent of those who own small and mid-sized businesses are 50 or older.
• Four out of 10 entrepreneurs in Canada are likely to leave their businesses within the next five years, up from one in three in the mid-2000s. The main reason they give for moving on is retirement.
That means opportunity is knocking for both sellers and buyers.
It also means business owners will have to face tough decisions.
As they think about retirement, they will have to consider their exit strategy, which could include family succession, a management buyout, a sale to a third party, and the worst-case scenario of winding down the business and selling off the assets.
“One overriding message is clear from our research: succession planning is not easy, and it requires more time and more resources than most business owners might expect,” says BDC.
“As with selling a home, the business may require some ‘staging’ to make it more attractive to buyers. Those willing to put in the necessary time and effort are likely to be well rewarded.”
A professional business broker can make a big difference in whether a seller will succeed. We’ve helped hundreds of people through this process and can help you prepare for sale.
We’ve also helped hundreds of entrepreneurs achieve their dream, and buy a business.
Selling and buying a business is a complicated process.
Together, the brokers at Business Finders Canada have more than 200 years of experience in the industry.
We’ve seen more and more people turning to a business broker for expert advice on all kinds of issues, including properly valuing their business and getting a business ready to go on the market.
When it comes down to it, buying a business is one of the most important decisions you’ll ever make. It will have a long-term impact on lifestyle and finances.
We can help.