Private Equity Firms on Standby as Baby Boomer Businesses Seek Exits

A SunTrust survey suggests 33 percent of baby boomers expect to transition the ownership of their business in the next five years, while 36 percent have no specific transition plan and 21 percent are financially unready for retirement, reports AlphaWeek . With a high number of private equity firms looking for investments, the present is "a very attractive time for boomers to explore a sale of their business," says SunTrust's Jason Cagle. The poll implies boomers also are worried about the future of the their company after they exit, with 40 percent saying excessive operational disruption would prevent their acceptance of a buy offer. Boomers remain open to selling, with SunTrust estimating that 42 percent of business owners have weighed a purchase by a private equity firm or a third-party investor. "Many of the business owners we advise want to remain engaged in their business or their community," notes the SunTrust Business Transition Advisory Group's David Neubert. "Developing a thorough plan well in advance of a transition — ideally, three to five years in advance — can help ensure business owners have a plan for the next phase of their lives."