Boomer Retirement Trends: Many Family Businesses Are Leaving the Family

The Holts thought their children might want to take over the company they had run for more than 20 years manufacturing wooden oars and paddles.

Turns out, their adult children said, "No, thanks," according to a Business Insider article. They had worked at the business as they had grown up but then they developed their own interests and careers. The Holts were only the third owners of the 150-year-old company, Shaw & Tenney, but they soon realized they needed to sell to a third party.

Ultimately, they sold it to Jennifer and Neil Gutekunst, who already had experience owning two other businesses. They benefitted from the company's strong customer base, equipment, established employees, and a well-developed brand.

Their experience is far from uncommon. Almost 29 percent of Minnesota businesses are owned by baby boomers, who are expected to retire within 5 years, according to a guest column from Sunbelt Business Advisors. Many won't have an internal successor or family member ready to take over, so they will seek a third-party sale.

This Business Insider article lists some challenges for selling small businesses:

• Some are located in small towns where potential buyers don't want to move
• Some require specialized skill sets
• Some are profitable —but just barely

On the other hand, purchasing an existing business often is easier than starting one from scratch — and it's definitely easier to get financing for an existing business, according to Business Insider. Often, long-time business owners want to sell their companies to leaders who will preserve their legacy and find additional success.

In Minnesota, Sunbelt Business Advisors can help these retiring business owners find the right buyer, thanks to their large pool of buyers and expertise in marketing companies. They can help small business owners overcome the challenges of marketing their company so they can net the most possible from the transition. Sunbelt Business Advisors are so confident in their approach that they are the only business broker guaranteeing you’ll have ten buyer leads within 90 days of listing.