{"id":10414,"date":"2019-07-30T06:56:11","date_gmt":"2019-07-30T06:56:11","guid":{"rendered":"https:\/\/www.certitrek.com\/isba\/?p=10414"},"modified":"2021-06-24T14:56:43","modified_gmt":"2021-06-24T14:56:43","slug":"view-on-valuations-boomers","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/isba\/view-on-valuations-boomers\/","title":{"rendered":"View on Valuations: Boomers"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>If you were listening closely enough, that faint sound you may have heard recently is the proverbial pendulum swinging in a new direction.\u00a0 Those of us in the business valuation and merger &amp; acquisition\/business brokerage world have found comfort in the fact that the \u201cBaby Boomer bubble\u201d would save us in the long run.<\/p>\n<p>Millions of business owners born from 1946 to 1964 would be exiting their businesses by the thousands each day and that outflow of wealth would need our help. First, the business would need to be valued and then an exit planning professional would be needed to find that younger generation of buyers ready to shoulder the mantle of business ownership.\u00a0 \u201cJust be patient,\u201d we told ourselves at countless conventions, webinars, educational events, and other gatherings where we planned for our future.<\/p>\n<p>I believe we as a financial services community serving the exiting and aging business owners are wrong.\u00a0 I don\u2019t see the rush from the younger generation to buy many of the businesses being offered by the Baby Boomers \u2013 \u201djust not high tech enough, work is too hard and not really sure that business type will survive\u201d are among the reasons being given for the next generation to stay on the sideline.\u00a0 And from one who was born smack in the middle of the bulge, I know we are not getting any younger. That means realizing a smaller golden egg just when we counted on being home free of our business ownership responsibilities.<\/p>\n<p>So, how does that income forecast look now Mr. and Mrs. Valuation Professional when the outlook for a \u201creal\u201d buyer for the aging business owner\u2019s operation becomes more remote? Is that industry risk premium still where it was, or has it taken a turn?\u00a0 Hopefully, I am wrong, but I believe the Baby Boomer bulge in the pipeline may have an unhappy resolution for many of us.<\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Recommended Reading<\/b><\/span><\/p>\n<ul class=\"ul1\">\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/what-does-the-business-appraisal-process-look-like\">What Does the Business Appraisal Process Look Like?<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/selection-of-capitalization-ratesrevisited\">Selection of Capitalization Rates\u2014Revisited<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/what-do-the-financials-actually-tell-us\">What Do the Financials Actually Tell Us?<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/what-does-a-business-appraisal-cost\">What Does a Business Appraisal Cost?<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/when-is-the-use-of-a-weighted-average-cost-of-capital-appropriate\">When is the Use of a Weighted Average Cost of Capital Appropriate?<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/in-support-of-unsupportable-rates\">In Support of Unsupportable Rates<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/unlocking-hidden-income-and-assets\">Unlocking Hidden Income and Assets<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/updated-levels-of-value-chart\">Updated Levels of Value Chart<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/describing-the-specific-risk-premium\">Describing the Specific Risk Premium<\/a><\/li>\n<\/ul>\n<p class=\"p1\"><span class=\"s1\"><b>Recommended Resources<\/b><\/span><\/p>\n<ul class=\"ul1\">\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/valuation-practice-advice-turn-the-practice-you-have-into-the-practice-you-want\">Valuation Practice Advice: Turn the Practice You Have Into the Practice You Want!<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/business-valuation-for-marital-dissolution\">Business Valuation for Marital Dissolution<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/market-data-for-pricing-a-business\">Market Data for Pricing a Business<\/a><\/li>\n<li><a href=\"https:\/\/learning.intlbca.com\/products\/review-a-reviewed-demo-report\">Review a Reviewed Demo Report<\/a><\/li>\n<\/ul>\n<p class=\"p5\"><span class=\"s1\"><b>Recommended Courses<\/b><\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li6\"><span class=\"s2\"><a href=\"https:\/\/learning.intlbca.com\/products\/business-certified-appraiser-certification-program\"><span class=\"s3\">Business Certified Appraiser Certification Program<\/span><\/a><\/span><\/li>\n<\/ul>\n<p class=\"p5\"><span class=\"s4\"><a href=\"https:\/\/learning.intlbca.com\/\"><b>ISBA Learning<\/b><\/a><\/span><span class=\"s1\"><b>:<\/b>\u00a0Looking for authoritative business appraisal courses, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in\u00a0<a href=\"https:\/\/learning.intlbca.com\/\"><span class=\"s4\">ISBA Learning<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; If you were listening closely enough, that faint sound [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":10415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30,34],"tags":[],"class_list":["post-10414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-blog","category-valuation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>View on Valuations: Boomers - ISBA<\/title>\n<meta name=\"description\" content=\"First, the business would need to be valued and then an exit planning professional would be needed to find that younger generation of buyers ready to shoulder the mantle of business ownership.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/isba\/view-on-valuations-boomers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"View on Valuations: Boomers\" \/>\n<meta property=\"og:description\" content=\"First, the business would need to be valued and then an exit planning professional would be needed to find that younger generation of buyers ready to shoulder the mantle of business ownership.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/isba\/view-on-valuations-boomers\/\" \/>\n<meta property=\"og:site_name\" content=\"International Society of Business Appraisers (ISBA)\" \/>\n<meta property=\"article:published_time\" content=\"2019-07-30T06:56:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-24T14:56:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/isba\/wp-content\/uploads\/sites\/7\/2021\/02\/iStock-902740728_Boomers.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"623\" \/>\n\t<meta property=\"og:image:height\" content=\"561\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/isba\/view-on-valuations-boomers\/\",\"url\":\"https:\/\/www.certitrek.com\/isba\/view-on-valuations-boomers\/\",\"name\":\"View on Valuations: Boomers - 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