Business Insider had an article highlighting how Boomers are selling their small businesses as they retire, presenting a $10 trillion opportunity for millennials. Many millennials are interested in acquiring existing businesses as a pathway to wealth-building, especially in a challenging housing market. While the process can be complex, with fewer than a quarter of listed businesses selling each year, those who successfully navigate the acquisition can benefit from established brands and customer bases. The trend reflects a shift in ownership dynamics, as many younger potential successors are not interested in taking over family businesses, leading to a growing market for millennial buyers.
Why do we care?
This is an interesting opportunity and a trend to be aware of.
First, for IT services organizations, as millennials seek to acquire established businesses, they will likely look to modernize and digitize operations to compete in a tech-driven economy. Many Boomer-run businesses may have outdated technology, minimal online presence, or inefficient IT systems. For IT service providers, this presents an immense opportunity for IT service providers to offer modernization, automation, and digital transformation services.
Second, for younger owners, there is an acquisition strategy of finding older companies to acquire as those owners look to retire.