Golden Age of Business Acquisitions

Did you know that business acquisitions are red hot right now? All kinds of businesses are being acquired. It’s not only the large businesses. A lot of the businesses being bought are small businesses. Small businesses are buying other small businesses.

Author Christopher Hurn explores the “acquisitions game” in his Forbes article, “Take Advantage of the Golden Age of Business Acquisitions”. According to Hurn’s, there has never been a more active time in business acquisitions.

Grow Your Business

If you are looking to grow your business, you may want to consider acquiring a competitor to consolidate the market. Other reasons include superior technology and acquiring a new product or service. You may want to identify a business that you think is ready for growth.

Demographics

Demographics is a reason why now is a good time to investigate acquiring a business. According to a 2019 study by Guidant Financial and Lending Club, 57% of small business owners are over the age of 50. Over the next 20 years about $10 trillion worth of assets will change hands, according to The California Association of Business Brokers. 12 million businesses could come under new ownership in the next two decades.

Now is the time to begin understanding what kind of acquisition would best help your business grow. Hurn’s believes a savvy move would be to turn to the Small Business Administration. He points to the 7(a) program in particular. He thinks the SBA can benefit small businesses. It is now possible to finance 90% of business acquisition deals with loan terms up to 25 years and lower monthly payments. Uses of the SBA 7(a) program include a variety of purposes ranging from expanding or purchasing an existing business to refinancing existing business debt.

Baby Boomers will retire by the millions, and most of them will be looking to sell their businesses. Hurn’s believes now is a highly unique time not only in the history of acquisitions, but also in the history of business.

EBIT knows what working with acquisitions involves. We can point you towards opportunities that you may have never realized existed.

Grand Warszawski/BigStock.com

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