Baby Boomers & Business Exits

The baby boomer generation stretches from 1945 to 1965. In 2020 this means that the youngest in this bracket are 55 while the eldest are approaching 75 years of age. This generation owns approximately 70% of all private businesses in Australia, around 1.47 million in total, and according to the William Buck Exit Smart Survey 2019, 77% of them are looking to exit over the next 10 years. By some estimates this will see over $1 trillion of value transferred in this period if buyers can be found.

We don’t profess to have a crystal ball to know what impact this tsunami of baby boomer exits will have on the business M&A landscape in Australia. Of course, the impact of Covid-19 adds additional complexity and uncertainty for both buyers and sellers. If the sheer volume of companies for sale puts downward pressure on sale prices, Baby Boomers who are already ready to sell their businesses should probably consider acting sooner rather than later.