Have you ever wondered how you compare as an owner with your peers?
The most recent data from The Value Builder System™ presents an interesting look into the current value of privately held businesses. In the study, How an Owner’s Age Impacts Their Attitudes Towards Exit, business owners were profiled in four generational groups, including:
- Millennials (owner born between 1981 and 1996)
- Generation X (owner born between 1965 and 1980)
- Baby Boomers (owner born between 1946 and 1964)
- Silent Generation (owner born between 1928 and 1945)
Below are some of the highlights:
Millennials running younger companies but staying in the race longer
Millennial business owners were 3 times more likely to have started their business after 2014. Of the business owners surveyed, nearly one-third (29.7%) say they don’t expect to exit their company for at least 10 years.
“Wealthy” defined differently across the generations
When asked for a definition of “wealthy,” 21% of Millennials said that $10 million makes you rich, compared to just 14.8% of all owners, who were more inclined to say that “having enough money to cover your lifestyle expenses” or being able to do “whatever, whenever you want to” was their definition of wealth.
Boomers focused on maximizing profits
When it comes to their goals for the year ahead, respondents were given a choice between growing their top line, growing their bottom line, or mastering their craft. Boomers were more likely (45.2% vs. 41.7%) to say their main goal was maximizing their bottom-line profits.
Silent Generation less likely to be owner dependent
Of the 35,000 business owners analyzed, 28.6% of the Silent Generation were more likely to say their business “would hardly suffer at all, and would survive a 3-month absence of the owner.” In comparison, only 17.9% of the other generations agreed with this. Silent generation is also twice as likely (18% vs. 9%) to be planning to exit their businesses within the next two years.
Overall, the data indicates that the one common denominator among all business owners – regardless of their age – is that they are thinking about their exit, whether in two years or over the next 10. Read the white paper to learn more.
Are you thinking about your next steps?
Whether you’re planning to transition out of your business in the next year or decade, it’s recommended you do everything possible to maximize the sale by focusing on the eight key drivers of business value.
Do you want to improve the value of your business?
If you’re interested in improving the value of your business, take our questionnaire or contact Colonial Business Brokerage today at (443) 982-7332.