News about business sales often points to Baby Boomers, many of whom are reaching retirement age, as a driving force behind business exits we’re seeing today.

If you’re one of the millions of Boomers approaching retirement, you’ve likely started thinking about your own transition and wondering when the ideal time to sell might be.

Determining the “right time to sell” depends on a mix of factors, some of which are completely out of your control, like how many other businesses are on the market. It’s natural to worry about an oversupply driving down values, but the reality is that not all Boomer business owners will decide to sell at the same time.

According to Calder Capital’s latest Market Update, now is indeed a great time to sell.

• Buyer interest remains at an all-time high for quality businesses. Serious buyers are actively seeking stable, well-managed companies with proven profitability, and competition among qualified acquirers continues to drive strong outcomes for sellers.
• Access to capital remains solid, though higher interest rates have made financing slightly more expensive than in the ultra-low-rate years following the pandemic. Still, banks and private lenders are eager to lend to creditworthy buyers, and the overall market remains more liquid than it was a decade ago.
• With public market volatility, cooling real estate returns, and fewer reliable high-yield investment options, small business acquisitions have become increasingly attractive. A well-run company with healthy margins, say, a 15-20% EBITDA margin, can offer investors consistent returns and greater control over their capital, something few other asset classes currently provide.

People will make decisions based on their personal inclinations and situations, and businesses will very likely come on and off the market at a reasonable rate. Some of them will sell because the owners will have carefully prepared for this stage, decreasing owner dependence and making sure that all assets are in good shape.

Other businesses will sit on the market, languishing, because they are overpriced or owner-dependent, or because their owners have unrealistic expectations about their desirability. The sad truth is that the majority of business owners (up to 80%) do not have an exit strategy in mind for their retirement. In many of these cases, the owners will simply close their businesses when they do not sell. However, by making a few strategic changes now, these people could ensure a much more successful outcome.

For Baby Boomers who have already done the prep work, though, now is a great time to sell.

If you’re considering selling your business, now or in the future, contact Calder Capital for a confidential conversation about the best strategy and timing to maximize your outcome.

About Calder Capital:

Founded in 2013, Calder Capital is a cross-industry mergers and acquisitions advisory firm with offices across the United States. Calder provides valuation, sell-side, and buy-side services. We are nationally recognized for excellence in advising $1-100M enterprise value transactions in manufacturing, construction, distribution, and business services. Calder serves business owners, entrepreneurs, family offices, financial buyers, and investors. Learn more at www.CalderGR.com.