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Jul 18Bruce Benes

Exit Strategies and B2B CFO Interviewed by Morningstar

Jul 18Bruce Benes

Morningstar, known as the leader in independent investment research in North America, Europe, Australia, and Asia, Morningstar offers data on approximately 390,000 investment offerings along with real-time global market data. Morningstar also offers investment management services and has nearly $140 billion in assets under advisement and management as of March 31, 2011. The company has operations in 26 countries.

Recently, B2B CFO® founder Jerry Mills was interviewed by Morningstar’s editor on the subject of exit strategies and the importance of having sound advice when selling the business.  Catch this informative interview at this link:

Morningstar Video

What’s the picture look like for small-business owners in retirement in the next few years?

Mills: Well, the numbers are dramatic. We know that in the United States that there are about 78 million baby boomers that are going to retire in the next 12 to 15 years. Interestingly enough, they own about 12.5 million businesses. And because the younger generation doesn’t want to take over those businesses, about 70%, or about 8.4 million, of those businesses are going to have something happen to them. They are going to transition to a third party, they are going to be liquidated, they are going to go to their employees in ESOPs–something is going to happen. Actually, I call it a tsunami. It’s never happened in terms of volume in the history of mankind. So, it’s going to actually be fascinating, and there’s going to be some winners and some losers as we go through these numbers.

Here’s an interesting point from the interview:

What’s the picture look like for small-business owners in retirement in the next few years?

Mills: Well, the numbers are dramatic. We know that in the United States that there are about 78 million baby boomers that are going to retire in the next 12 to 15 years. Interestingly enough, they own about 12.5 million businesses. And because the younger generation doesn’t want to take over those businesses, about 70%, or about 8.4 million, of those businesses are going to have something happen to them. They are going to transition to a third party, they are going to be liquidated, they are going to go to their employees in ESOPs–something is going to happen. Actually, I call it a tsunami. It’s never happened in terms of volume in the history of mankind. So, it’s going to actually be fascinating, and there’s going to be some winners and some losers as we go through these numbers.

B2B CFO®

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