While the Business Brokerage Industry got its start in the 1920’s, the industry has stabilized in the last decade at approximately 3,000 – 3,500 brokers nationwide. While traditionally, business brokers have helped mom-and-pop businesses find buyers, a Murphy business broker generally will be engaged to work with larger business transactions and has the opportunity to provide additional services, such as business valuations and equipment appraisals.
Leading economic experts are expecting there to be a surge of baby-boomer, middle and upper-managers looking to buy businesses in the next two decades, as they determine that they are ready for a change in their careers and want to be their own boss. This population consists of typical users of the business brokerage system, as well as great candidates to become business brokers themselves. A recent AARP magazine states "People are living longer and are more likely to pursue dream businesses rather than tend to their gardens when the workday lives are done."
According to the International Business Brokers Association:
- Within the next ten years approximately 50% of the businesses in the U.S. will change hands (Graying of American business ownership)
- At any given time, approximately 20% of businesses in the U.S. are for sale
“Can you say “Right Place, Right Time?” The next ten years in business brokerage has the potential to be the best years our industry has ever seen.”
William Lange, CBB, CBI.
M&AMI California Association of Business Brokers Newsletter (1/2/2008)
“An estimated 65 percent to 75 percent of the small companies in the U.S. - some 10 million - will likely hang up a "for sale" sign over the next five to 10 years. Why? Retiring Baby Boomers.”
Darren Dahl
“The Most Valuable Companies in America.” Inc. Magazine 130 (Apr. 2008): 1-3
“The next two decades will see a significant increase in the number of small and mid-sized businesses being sold. Much of the supply and demand will be coming from the Baby Boomers either retiring or starting their un-retirements. The 12 million businesses likely to change hands over the next 10-15 years might involve a large number of boomer to boomer sales.”
Jack Johnson
IBBA Winter 2007 Newsletter
“It is estimated that retiring Boomer entrepreneurs will sell or bequeath $10 trillion worth of assets over the next two decades. In many cases, these assets are held as stock in more that 12 million privately owned businesses, and during the next 10-15 years, more than 70% of these companies are expected to change hands.”
Richard F. Jackim and Peter G. Christman in The $10 Trillion Opportunity
