Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
Issue link: http://www.epageflip.net/i/1503533
WWW.UPANDCOMINGWEEKLY.COM 18 UCW JULY 12 - 18, 2023 As the financial recovery from the pandemic continues, Transworld's Main Street Market Report found that business acquisitions were up more than 32% from 2021 to 2022. is rebound is great news for buyers, but to fully understand the uptick, let's drill down into who is currently look- ing to sell their businesses and which demographics are primed to make a purchase. Who's Selling e primary sellers are baby boom- ers. Born between 1946 and 1964, the later end of this demographic is approaching retirement and looking to plan for their third act. e last of the boomers will reach full retire- ment age in 2031, less than 10 years down the road. Additionally, recession concerns, labor shortages and general burnout are propelling some to con- sider selling their businesses sooner rather than later. However, not all boomers are ready to cash out and leave the workforce. In fact, 49% of baby boomers expect to, or already have, extended their working lives past 70 or do not plan to retire, according to the nonprofit Transamerica Center for Retirement Studies in collaboration with the Transamerica Institute. Finally, the other top category of sellers is those interested in capital- izing on the buoyant business sales market we are currently experiencing. ese sellers may be looking to step back from entrepreneurship or simply feel it's the right time to shift their focus to a new and different business. Who's Buying If the sellers are boomers and those looking to cash in on the hot sales market, who are the individuals buy- ing at the moment? e two main groups are people looking to leave corporate America and be their own bosses and strategic buyers. e pandemic changed how many people looked at work/life balance. e first group of people buying took a hard look at how their jobs were align- ing with their personal lives during the pandemic and came away thinking there had to be a better way. ey are interested in entrepreneurship so they can be the ones making the rules and deciding when they need to clock in and out. As a result, this group is look- ing for businesses that are considered the most recession-proof. Among that group, service-based opportunities are the most popular. at leaves strategic buyers, i.e., people interested in acquiring a busi- ness for strategic reasons. ey have most likely never owned the type of business they are purchasing and are interested in the business to enhance their competitive position. For instance, this type of buyer may be looking to gain complementary products, technologies, customer bases, or distribution channels that will help them with cost savings, revenue growth, market expansion, or other strategic objectives. Strategic buyers can be larger companies looking to buy a smaller business to expand their offerings or consolidate their industry position. ey could be buying a company to enter a new market or eliminating a competitor. e focus is on the long- term benefits the business gives them, not financial returns alone. Even with some economic condi- tions changing in 2023 — interest rate increase and concerns about infla- tion — the data on sales speed, price and deal volume continue to trend upwards, as they did in 2022. ese are all good signs for anyone looking to sell their quality business in the months ahead. Editor's note: Ashley Kelsey is a Busi- ness Broker at Transworld Business Advisors of Eastern North Carolina. She can be reached at 910-302-6447 or email akelsey@tworld.com. Who's buying and who's selling in 2023 by ASHLEY KELSEY BUSINESS & FINANCE ASHLEY KELSEY, Transworld Business Advisors of Eastern North Carolina. Comments? Akelsey@ tworld.com Equal Credit Opportunity Lender. JOIN TODAY! Consistently rated one of the strongest and safest credit unions in the nation. Be a part of Bragg Mutual!