Why will you be able to buy some dirt cheap businesses in the next 3 – 5 years?
The Baby Boomers will want to cash out and have just have fun in retirement.
With lots of businesses hitting the market at the same time, the supply will exceed the demand making business acquisition a “buyer’s market”… or at least more of a buyer’s market.
Complicating the issue for me is that many of these businesses will not be on the cutting edge of technology and may actually be phasing out of existence like the buggy whip.
Unless these business owners have other assets for retirement, they may take a big hit.
But the new owner may find a real bargain.
From the Denver Business Journal
If you’re thinking about selling your business within the next 10 years, you might want to hop to it: Current high sale prices may not last much longer.
Mergers-and-acquisitions firms are bracing for a flood of companies to hit the market within the next three to five years as owners born during the baby boom years — roughly 1946 to 1964 — begin to retire. That increased supply could knock valuations from their current lofty levels.
Funny, many will be cashing in their 401k’s too in mass number.
Are you ready for the stock market to see depressed prices (at least in certain popular stocks) too? The same logic applies.
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