Happy Retirement, Baby Boomers!

by Paul Berry, UK Partner at Luminar International

The term Baby Boomer was used to describe the dramatic increase in birth rates primarily following the Second World War.  Its size is quite staggering with seventy-six million American children born between 1945 and 1964. In 2004, the UK baby boomers held 80% of the UK's wealth - some £5.4 Trillion, yes that’s Trillion not Billion and bought 80% of all top of the range cars, 80% of cruises and 50% of skincare products.  Nice lifestyle... for now.

The issue now is how the Baby Boomers realise the value of their assets.  This is particularly acute when you look at business owners.  One noticeable trend - according to family-business expert Frank Schneider – family businesses tend not to pass down the generations.  Only a third of family businesses were taken over by the second generation dropping to only 13 percent when passed onto the Grandchildren.

Furthermore:

• Ninety percent of all businesses with employees are family owned, and one-third of Fortune 500 firms are family controlled.
• A survey by PriceWaterhouseCoopers finds that one out of every two company owners plan to sell their business within the next 10 years. This represents about 8 million businesses.
• People 55 or older own 30 percent of all businesses with employees.
• Businesses with employees are expected to grow in number by 22 percent every five years, as they did from 1997 to 2002.

The concerns in the market place have led a lot of potential vendors to sit and wait.  The economy is struggling we are told, banks aren’t lending, profits are below the levels in the last few years.  All of which leads owners to be cautious.  However there is a risk is that in the next few years the tables may turn, as circumstances change.  With such a significant event as selling your own business, planning is essential.  If you plan to retire, getting the right building blocks in place now is vital.

If you would like to investigate whether Luminar International may wish to buy your business, then contact us.

Luminar International
http://www.luminarinternational.com/
info@luminarinternational.com