Business Succession Expert Michael Podolny Warns of Impending Baby-Boomer Small Business Sale Crisis

ALBUQUERQUE, N.M. - June 20, 2013 - PRLog -- There are many business owners between the ages of 50 and 65 who are planning on selling a small business or completing a business succession and transitioning into a position of financial independence over the next 5 to 15 years. That’s another way to say retirement. However, long-time merger/acquisition professionals calculate that business owners of the baby boomer generation who plan to fund their future financial independence exclusively from selling a small business may expect a decrease in their income in the range of 70%. Compounding the issue, there is a distinct lack of readily available information to help baby boomer business owners make the necessary changes to their business model early enough to rectify that outcome.

According to the most recent Census Bureau’s Survey of Business Owners, baby boomers make up almost half of the total amount of business owners in the United States. Lower population density of upcoming generations leads to a natural discrepancy between supply and demand resulting in lower business valuations at market. Credit standards for small-business borrowers continue to remain tight meaning less qualified buyers or sellers retaining some risk instead of gaining financial independence. Long-term trends of demographics, business valuation realities, the effect of taxes, and rates of returns on passive investments are leading to a crisis in the value that smaller business owners (annual sales of under $10 million) will be able to attain from selling a small business.

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Business Exit and Succession expert Michael Podolny of Albuquerque based The Podolny Group says, “Owners must recognize what no longer works in the new economy and be willing to make the changes in strategies and tactics necessary to create the retirement they have imagined.”

Recent economic indicators imply that the business sale environment may not improve fast enough for most baby boomer small business owners. Due to the lack of business exit and succession information available in one location, Mr. Podolny recently launched the website http://businessexitandsuccession.com . The site offers a wealth of information on the complexities that go into making an business exit decision from transaction details to future income expectations once the owner leaves the business. businessexitandsuccession.com may offer business owners the opportunity to retire as they desire, rather than working later in to life.