- The Baby Boomers (those born between 1946 to 1965) approximately 5,000,000 of them are poised to make a great impact on the Canadian economy.
- The oldest Baby Boomer reached 65 years old in 2011.
- Canada has over 1,000,000 small businesses (employs between 1 – 99 employees) or a total of 98.22% of all businesses registered in Canada.
- Retiring Boomer business owners will sell or bequeath $1 trillion worth of assets over the next two decades.
- These assets are held in more than 1 million privately owned businesses.
- More than 50 percent of these companies are expected to change hands within the next 3 – 7 years. Based on the fact that in 7 years from 2015, the oldest Boomer will be 76 years old.
- The sale of almost 500,000 businesses over the next 3 to 7 years represents a significant increase in the annual number of businesses that will be sold.
- These owners of businesses should have a valuation performed by a qualified business appraiser/valuator, to map out a strategy for selling and structuring the sale of the business.
- Planning ahead will enable business owners to achieve the best transaction possible during this Boomer-induced wave of business sales.
- The 500,000 businesses likely to change hands over the next 3 - 7 years might involve a large number of boomer-to-boomer sales.
- Baby Boomers ages 45 to 64 form businesses at a higher rate than other age groups.
- 55 to 64 year oldS form businesses at the highest rate of any age group.
- Many of the Baby Boomers are too young to retire; they typically have ample capital through savings, investments or other assets; they have job-related skills accumulated through a lifetime of work; and many have lost faith (and money) as a result of large company layoffs and restructurings; and many will buy their own business in coming years.
- Many Boomers find themselves unhinged from their traditional employment safety nets. This dislocation has fueled an intense desire and need to have control of their destinies.
- Ironically, now small business ownership is seen as much more safe and secure than working for a large company.
- So, in the coming years, not only are we likely to see Baby Boomers selling businesses they now own, we will also see additional Boomers (who’ve spent their lives working for someone else), buying businesses.
- The next two decades will see a significant increase in the number of small and mid-sized businesses being bought and sold by Baby Boomers, in addition to the other generations of Canadians that business brokers regularly deal with.
Key Small Business Statistics from Industry Canada
Generations in Canada from Industry Canada