More Company Founders Happy to Find Buyers at a Younger Age
Time was, entrepreneurs would start a company in their 20s and hold onto it until they retired, died or went out of business, whichever came first.
No more. With big companies in an acquisitive mood and willing to pay a premium, small-business owners appear more willing than ever to take the money and run.
A record 74% of entrepreneurs said they expect to sell or merge their companies in the future, up from 64% in 1998, according to DAK Group Ltd., a New Jersey-based mergers and acquisitions advisor to small businesses, and Rutgers University Business School.
“Small-business owners are not so married to their businesses anymore,” said DAK President Alan Scharfstein. “Many are thinking about cashing out now when the market is high instead of holding on until they’re ready to retire.”
A decade ago, sellers were mostly in their 60s and 70s. Today, they’re in their 40s and 50s, he said.
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