this post was submitted on 19 Aug 2024
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121
Boomers are selling businesses to millennials in a generational handover (www.theguardian.com)
submitted 3 months ago by MicroWave@lemmy.world to c/news@lemmy.world
24 comments fedilink hide all child comments
 

When you hear “startup”, you might think of the millions of entrepreneurs who have founded new businesses over the past few years. But these are mostly freelancers, contractors and people with full-time jobs who can accommodate a side gig. The real startup story is quietly happening elsewhere: trillions of dollars of wealth are slowly being transferred to a younger generation by boomers selling their businesses to those looking to build their own.

According to a new report from BizBuySell, a business brokerage and research site, the number of small businesses being sold has not only recovered to pre-pandemic levels, but is quickly rising. And the market for would-be entrepreneurs is hot. Business owners who sold their companies in the second quarter of this year are getting 20% higher prices than those who sold their businesses the same time last year.

Boomers are selling at a furious pace and they’re just getting started. This shouldn’t come as a huge surprise. According to the US Small Business Administration, more than half of the nation’s small-business owners are over the age of 50, and approximately 21% of the US population were born before 1964. As of February 2024, according to one study, baby boomers owned about 51% of the privately held businesses in the United States, which is about 3m businesses valued at $10tn.

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[–] givesomefucks@lemmy.world 105 points 3 months ago (2 children)

The real startup story is quietly happening elsewhere: trillions of dollars of wealth are slowly being transferred to a younger generation by boomers selling their businesses to those looking to build their own.

What?!

That's not transferring wealth to a younger generation, it's transferring wealth to the boomers in exchange for businesses that are likely going to fail, plus some to lenders for the interest. Regardless of who buys it, they have to pay sky high interest, if they can't the bank gets it.

And at least in my city, it's mostly people who worked for the boomer, didn't understand the legal parts, and got hosed.

We just had a guy pay 1.5 million for a failing restaurant without having a lawyer look at it because the seller was a "mentor".

There was a stipulation in there that it was just for the name and lease. The boomer didn't even own the property, even though he had been telling people he owned it for over a decade.

Dude thought he was buying a restaurant and the property. The boomer sold all the equipment and moved to Florida.

[–] Quill7513@slrpnk.net 31 points 3 months ago

Yeah. Real story here is yet another shell game is playing out in plainview of everyone. One that ensures generational wealth and poverty remain in place

[–] walden@sub.wetshaving.social 23 points 3 months ago

A true mentor, teaching a very important lesson.

[–] JoMiran@lemmy.ml 52 points 3 months ago (1 children)

Boomers are selling at a furious pace and they’re just getting started.

My money is on Boomers selling to funds if the business is viable, or Millenials if the business is failing.

[–] ravhall@discuss.online 19 points 3 months ago

Just like those shitty houses they couldn’t flip. Grab your toolbelt millennials, this unsustainable company has been in the red for the last decade. What an amazing DIY opportunity for your YouTube channel

[–] FlyingSquid@lemmy.world 47 points 3 months ago (4 children)

Where are the Millennials coming up with the money? Putting the houses they don't own up as collateral?

[–] PlasticExistence@lemmy.world 17 points 3 months ago

They just get the standard small, million-dollar loan that everyone gets. Duh.

[–] OutsizedWalrus@lemmy.world 6 points 3 months ago

It’s much easier to get approved for a loan on an existing business like this - especially if it has a physical building.

Cash flow records show whether it turns a profit and a building provides real collateral that can be foreclosed and auctioned offf.

[–] BakerBagel@midwest.social 5 points 3 months ago

Their dad that they are buying the business from.

[–] Notyou@sopuli.xyz 4 points 3 months ago

You only need 1 kidney.

[–] Wrench@lemmy.world 25 points 3 months ago

That's not handing anything over. They're going for one last big payout after a lifetime of exploitation.

They have their real estate portfolio that they rent at exorbitant prices, or sell at massive mark ups because they got into the market at sane levels and contributed to the feeding frenzy that has led to today's unaffordable housing.

They strung their employees on, taking the increased profits from inflation without paying their employees enough to keep up.

And now they're selling their small businesses to those same employees at prices that practically guarantee they will be unable to keep up. Because even though they have all the wealth that they've accumulated from a life of exploitation, they deserve to ride off into the sunset with a saddlebag stuffed with gold.

[–] AllNewTypeFace@leminal.space 20 points 3 months ago (3 children)

sucks to be GenX in that case

[–] adam_y@lemmy.world 16 points 3 months ago (1 children)

The forgotten generation. Little chance of owning a hone or a business, skipped over for work.

Still, at least we have spent our whole lives learning to be slackers.

[–] FlyingSquid@lemmy.world 15 points 3 months ago (2 children)

Still, at least we have spent our whole lives learning to be slackers.

As a fellow Gen Xer, I consider that part worth it.

Gotta get something out of being the last generation to grow up breathing lead.

[–] skuzz@discuss.tchncs.de 6 points 3 months ago (1 children)

Hey! Xennials/Millennials got to breath lead too, at least the earlier ones.

[–] FlyingSquid@lemmy.world 6 points 3 months ago* (last edited 3 months ago) (1 children)

A few, but lead was totally removed from the U.S. gasoline supply by 1986.

My parents had a car when I was a kid that actually took leaded gas.

[–] BakerBagel@midwest.social 2 points 3 months ago

You can still buy leaded gasoline. Your local municipal airport sells it since many single engine planes still require leaded gasoline.

[–] adam_y@lemmy.world 4 points 3 months ago

Huffing lead is just OG eating microplastics.

[–] JoMiran@lemmy.ml 10 points 3 months ago* (last edited 3 months ago)

Whatever.

Sincerely,
Gen-X

[–] SeaJ@lemm.ee 17 points 3 months ago

The Guardian apparently does not know that selling something is not simply handing it over.

[–] kandoh@reddthat.com 2 points 3 months ago

The other generations will get so sick of millenials - the last of the large generational voting blocks.

We're just at the beginning of their reign.

[–] vala@lemmy.world 1 points 3 months ago

K

[–] MediaBiasFactChecker@lemmy.world -5 points 3 months ago

Statista - News Source Context (Click to view Full Report)Information for Statista:

MBFC: Least Biased - Credibility: High - Factual Reporting: High - Germany
Wikipedia about this source

The Guardian - News Source Context (Click to view Full Report)Information for The Guardian:

MBFC: Left-Center - Credibility: Medium - Factual Reporting: Mixed - United Kingdom
Wikipedia about this source

Search topics on Ground.Newshttps://www.theguardian.com/business/article/2024/aug/18/small-business-boomer-millennial-wealth
https://www.statista.com/statistics/296974/us-population-share-by-generation/
https://www.theguardian.com/business/2024/jan/14/boomers-small-business-owners-us-economy
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