Why Business Valuations are Down

The buyer to seller ratio for businesses has already dropped in the past 15 years from 2:1 to almost a 1:1 ratio, according to a new study by BlumShapiro and UCONN.  This sets the stage for a buyer’s market and means increased competition for business owners reaching retirement age who want to sell.  For those who have worked hard to grow and manage their businesses for so many years, this is a scary prospect as it could drive down business valuations or force owners to work longer in hopes of attaining better values.  Unfortunately, Connecticut’s Baby Boomers are just starting to reach retirement age and the number of buyers will continue to decline.  The big question is:  Are you prepared for what lies ahead?

47% of all Connecticut business owners are expected to be 55 of older by 2025 BlumShapiro Press Release

VR Nutmeg is dedicated to guiding businesses through the valuation and selling process.  Stay tuned for additional posts on what you can do now to better position your company for higher valuations and appeal to buyers when you’re ready to retire.