--- title: The Small Business Weather Report description: Tsunami of businesses on the market affecting value. --- **[![](https://www.stonyhilladvisors.com/hs-fs/hubfs/images/logo-stony-hill-business-advisors.jpg?width=397&name=logo-stony-hill-business-advisors.jpg "logo-stony-hill-business-advisors.jpg")](https://www.stonyhilladvisors.com)** Looking to Speak with Someone Now? [![Call Us](https://no-cache.hubspot.com/cta/default/44760/61832c77-1aa9-4e59-b696-524f33057960.png)](https://cta-redirect.hubspot.com/cta/redirect/44760/61832c77-1aa9-4e59-b696-524f33057960) ## [The Small Business Weather Report](https://www.stonyhilladvisors.com/blog/small_business_weather_report) Posted by [Paul Visokey](https://www.stonyhilladvisors.com/blog/author/paul-visokey) Mon, Apr 17, 2017 @08:10 AM - [Tweet](https://twitter.com/share)   We hear every day about extreme weather happening all over this country. These reports unfortunately don’t mention the privately held small business tsunami that is coming. Since January 1st 2011 about 8,000 “baby boomers” turn 65 each day. According to the U.S. Census Bureau more than four million businesses with more than one employee are owned by people over 53 years old. This equates to about 70% of the small businesses privately owned. A conservative estimate would suggest there are two million businesses owned by people who have reached the standard retirement age, and the number is growing every day. An estimate of the capital needed to transfer these businesses from a retiree to a new owner exceeds five trillion dollars, and it is increasing every day. This gigantic wave of businesses transferring ownership is coming fast. A proper exit plan that will allow a business to stand out from the crowd and have a value higher than other similar businesses takes minimally a year, but more realistically three to five years to implement. In addition, historically the business economy runs in cycles that average ten years give or take two years. Our current economic recovery as defined by economists is in its sixth year. This would suggest that every business owner who would like to retire before 2020 needs to *immediately *begin preparing for their exit. After the year 2020 values will decline from either the tremendous number of sellers in the market or the next downturn or both. Another way to think about the tsunami is in terms of the economic value that will be destroyed. Like weather disasters in which the devastation wipes out wealth. In normal times less than a third of the businesses that are on the market for sale actually change hands. This small business tsunami will exacerbate this statistic. Again, only the businesses with an exit plan and a commitment to implementing the plan will result in a satisfactory transaction. An exit planning advisor can help with creating the plan and guide the implementation. The ROI from engaging an advisor can be anywhere from nearly infinite – the difference between selling and closing - and at least a 10% increase in the selling price from reducing the buyer’s risk. Reducing the buyer’s risk starts with knowing the elements of the business that are typically scrutinized the most and then spending time evaluating the business from a buyer’s perspective. An exit planning advisor has this perspective gained from many previous transactions that he can call on to create an exit plan. Some typical areas that a buyer will closely evaluate include the management team who will remain with the business, revenue types, recurring or one time clients, customer concentrations, competitive advantage, financial records, and so on. An exit plan will address these and many other areas of the business. An exit planning advisor can be considered part of your team to prepare for the small business tsunami. Like having someone cover your windows in advance of a hurricane or having someone dig a storm cellar in advance of a tornado or having someone place sandbags in advance of a flood the exit planning advisor will help you protect your wealth.   Topics: [sell your business](https://www.stonyhilladvisors.com/blog/topic/sell-your-business), [business valuations](https://www.stonyhilladvisors.com/blog/topic/business-valuations) ### Follow Me # [All Blog Posts >](https://www.stonyhilladvisors.com/blog/all) # [FAQ's >](https://www.stonyhilladvisors.com/why_faqs) ### Do you own your own business? The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately-owned. It is often difficult for owners to convert all of their hard work and ingenuity into an equity event. It is a complex and time-consuming process. Stony Hill Business Brokers has the experience and expertise to assist with selling a private business successfully. ![line break image](https://www.stonyhilladvisors.com/hs-fs/file-14106577-jpg/images/right_side_line_break.jpg) ### **Is it time for a change?** All of the partners at Stony Hill Business Brokers have been entrepreneurs in private businesses and have had experience managing and selling their businesses. We understand the grind of running your own show and the uncertainty of getting the most value for the business. ![line break image](https://www.stonyhilladvisors.com/hs-fs/file-14106577-jpg/images/right_side_line_break.jpg) ### **Are you looking for guidance?** We have particular experience with the small business market in eastern Pennsylvania, New Jersey and Delaware. We can provide advice on preparing a business for sale, even years in advance. We can help buyers find the right business for their circumstances. And we advise both sellers and buyers throughout the process to assure a quick, smooth transfer of ownership. Do you own your own business? The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately owned. It is often difficult for owners to convert all their hard work and ingenuity into an equity event. It is a complex and time-consuming process. We understand the grind of running your own show and the uncertainty of getting the most value for the business. Stony Hill Advisors has the experience and expertise to assist with selling a private business successfully. Are you looking for guidance? We have experience in the small and mid-market business market with companies having revenues from $1M to $50M . We can provide advice on preparing a business for sale, even years in advance. We can help buyers find the right business for their circumstances. And we advise both sellers and buyers throughout the process to assure a quick, smooth transfer of ownership. In some instances, the parties to a transaction locate each other through informal industry or personal channels. These transactions include sales to unrelated third party acquirers, as well as management, family and partner buyouts. Stony Hill Advisors is frequently engaged to structure these transactions and navigate the many issues requiring attention from the initial stages to the consummation of the transaction. Often Stony Hill Advisors is engaged to provide Exit Value Planning to prepare a business for highest value when it is time to transition.   Are you interested in buying a business? Stony Hill Advisors assists companies, entrepreneurs and corporate executives develop and execute customized acquisition strategies designed to result in successful acquisitions. We will find a unique business that is not necessarily “on the market”, resulting in a cost-effective acquisition. [![](https://www.stonyhilladvisors.com/hs-fs/hubfs/images/social-icons/facebook-icon-1.png?width=40&height=40&name=facebook-icon-1.png "facebook-icon.png") ](https://www.facebook.com/Stony-Hill-Business-Brokers-LLC-156557127704967/?ref=br_rs) [![](https://www.stonyhilladvisors.com/hs-fs/hubfs/images/social-icons/linkedin-icon-1.png?width=40&height=40&name=linkedin-icon-1.png "linkedin-icon.png")](https://www.linkedin.com/in/stonyhill/) [![](https://www.stonyhilladvisors.com/hs-fs/hubfs/images/social-icons/twitter-icon-1.png?width=40&height=40&name=twitter-icon-1.png "twitter-icon.png") ](https://twitter.com/stonyhillbizbro) © 2017 Stony Hill Advisors