Tick Tock Boomers

Tick. Tock.

Is Time is Running out for Canada’s Baby Boomer

Business Owners?

By: Michael Mangialardo

Baby Boomer - Business Owners

Boomers own about 50% of all business in North America that employ 10 or more people


1.7 million Canadian business owned by Boomers

• 45% of Canada’s gross domestic product

• Employ some 60% of all Canadian workers


• More than 2/3 of Canada’s independent business owners plan to retire or relinquish control of their

business within the next 10 years.

• More than 1/3 intend to exit within 5 years

THE SUPPLY OF BUSINESSES FOR SALE IN CANADA WILL FAR OUTSTRIP DEMAND OVER NEXT TEN YEARS.


550,000+ businesses to be sold by 2015

A transfer of assets valued at

$1.2 trillion


Boomers used sophisticated techniques over the past decades to start, grow and manage their business

but have failed to understand the need to plan an exit.

Only 15% have an exit strategy!


Even at the best of times studies show that 80% of all

business put on the market fail to sell or transfer

successfully.


Unless they seize the moment, the net result of this perfect storm of “aging and selling”

could leave Boomers on the outside looking in when it comes time to

‘cashing in’ on their life’s workand enjoying the fruits of

their labour.

TICK. TOCK.


Why businesses fail to sell:

• Not sustainable – consumer, technology and other trends reducing demand over time

• Not transferable - owner is driving force behind success of business

• Supplier contacts• Strong and deep personal relationships with key customers• Surrounded by long term employees who, over the years developed internal policies, practices and processes to accommodate idiosyncrasies of owner


What can Private Business Owners do to increase chances of a

successful exit?

Lots!


Think like an owner, notan operator – business is an asset:

how to make it more valuable?

Value=Profit that’s sustainableand transferable


Sustainable• Market share• Market potential• Barriers to entry• Differentiation• Brand• Customer diversity


Transferable• Product• Processes• Management team• Staff• Finances


DON’T BLAME THE KIDS.

SUSTAINABILITY AND TRANSFERABILITYARE THE MISSING PIECES OF

SUCCESSION PLANNING.


BOARDROOM METRICS

• measurement tools

• private business experience

www.boardroommetrics.com

905-709-4031

Tick Tock Boomers

Business

Transcript of Tick Tock Boomers