Blog: Illuminating the Season by
FOOD & BEVERAGE: The Baby Boomer retirement rush.
Dated: May 10 2023
Baby Boomer Food and Beverage owners looking to sell their businesses face a challenging current market, and process of business valuation.
As the Baby Boomer owners reach retirement age, many are looking to sell their businesses and cash out on their years of hard work. However, they are finding that the process of business valuation can be adifficult task, and the current market for food and beverage businesses is not as favorable as they may have expected.
The business valuation process is calculating the economic value of a business or entity. It takes into account several issues such as financial performance, market trends, industry outlook, and more.
For Baby Boomer food and beverage owners who have poured years of their lives into their businesses, determining a fair and accurate valuation should be the critical step in begining the selling process.
Unfortunately, many Baby Boomer owners are finding that the market for small businesses is not as favorable as it was in the past. As well, financing available to buyers is very difficult at this time.
With more and more Baby Boomers looking to sell, there is an abundance of supply, but not enough demand. This means that valuations are often lower than expected, and owners may struggle to find buyers willing to pay the price they believe their business is worth.
To make matters worse, the COVID-19 pandemic has had a significant impact on the market for small businesses. Many businesses have struggled to survive, and those that have survived may not be as profitable as they once were. This has led to further challenges for Baby Boomer owners looking to sell their businesses, as they may have to accept lower valuations than they had anticipated.
So, what can Baby Boomer owners do to navigate this challenging market?
Firstly, it is important to work with a reputable business broker or advisor who has experience with food and beverage properties, both in business valuation and selling. They can help owners understand the market trends, identify potential buyers, and navigate the complex process of selling.
Secondly, owners should focus on making their businesses as attractive as possible to potential buyers. This may involve improving financials, redecorating, investing in marketing, branding, and technology, as well as ensuring that all legal and financial documentation is up to date and accurate.
Finally, owners may need to adjust their expectations when it comes to valuations.
While it can be challenging to accept a lower price than anticipated, it may be necessary in order to find a buyer and move on to the next phase of life.
Virginia Realtor with Weichert Loudoun Commercial Advisors.Director of Food & BeverageReal Estate advisor to the restaurant and retail food & beverage industries. Specializing in buying,....