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submitted 2 months ago by MicroWave@lemmy.world to c/news@lemmy.world

When you hear “startup”, you might think of the millions of entrepreneurs who have founded new businesses over the past few years. But these are mostly freelancers, contractors and people with full-time jobs who can accommodate a side gig. The real startup story is quietly happening elsewhere: trillions of dollars of wealth are slowly being transferred to a younger generation by boomers selling their businesses to those looking to build their own.

According to a new report from BizBuySell, a business brokerage and research site, the number of small businesses being sold has not only recovered to pre-pandemic levels, but is quickly rising. And the market for would-be entrepreneurs is hot. Business owners who sold their companies in the second quarter of this year are getting 20% higher prices than those who sold their businesses the same time last year.

Boomers are selling at a furious pace and they’re just getting started. This shouldn’t come as a huge surprise. According to the US Small Business Administration, more than half of the nation’s small-business owners are over the age of 50, and approximately 21% of the US population were born before 1964. As of February 2024, according to one study, baby boomers owned about 51% of the privately held businesses in the United States, which is about 3m businesses valued at $10tn.

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[-] givesomefucks@lemmy.world 105 points 2 months ago

The real startup story is quietly happening elsewhere: trillions of dollars of wealth are slowly being transferred to a younger generation by boomers selling their businesses to those looking to build their own.

What?!

That's not transferring wealth to a younger generation, it's transferring wealth to the boomers in exchange for businesses that are likely going to fail, plus some to lenders for the interest. Regardless of who buys it, they have to pay sky high interest, if they can't the bank gets it.

And at least in my city, it's mostly people who worked for the boomer, didn't understand the legal parts, and got hosed.

We just had a guy pay 1.5 million for a failing restaurant without having a lawyer look at it because the seller was a "mentor".

There was a stipulation in there that it was just for the name and lease. The boomer didn't even own the property, even though he had been telling people he owned it for over a decade.

Dude thought he was buying a restaurant and the property. The boomer sold all the equipment and moved to Florida.

[-] Quill7513@slrpnk.net 31 points 2 months ago

Yeah. Real story here is yet another shell game is playing out in plainview of everyone. One that ensures generational wealth and poverty remain in place

[-] walden@sub.wetshaving.social 23 points 2 months ago

A true mentor, teaching a very important lesson.

this post was submitted on 19 Aug 2024
121 points (91.7% liked)

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