Baby Boomers selling their businesses in preparation for retirement may be making deals with sellers who don’t look exactly like them.
While those selling a business today are overwhelmingly white men over age 50, according to a new survey from online business marketplace BizBuySell, the profile of buyers for those businesses is far more diverse, especially among younger entrepreneurs.
Although they still make up a small share of overall buyers, nearly half of millennial small business buyers (age 18 to 29) identify as minorities, compared to just 20 percent of buyers over age 50. The gender imbalance among business owners appears less likely to change than the racial makeup, with women comprising just 22 percent of current owners and potential buyers.
The number one reason small business buyers cite for the purchase is a desire to be their own boss (63 percent). Other popular reasons included a desire to make more money (52 percent) and to have a better lifestyle (43 percent).
Small businesses account for about half of the country’s jobs, and the marketplace for small businesses is booming. The median sale price for a small business grew 10 percent in the first quarter to $220,000, according to a separate report from BizBuySell. The number of business sales in the quarter ticked up slightly from 1,830 to 1,840. By comparison, the site saw 1,150 transactions in the first quarter of 2010.