The retirement of Baby Boomer business owners marks a significant generational shift, with over 12 million businesses at risk of unprepared exits. Proper planning can ensure favorable conditions for owners and opportunities for younger entrepreneurs.
The 2025 M&A market is rebounding after two slow years, with increased confidence from strategic buyers and private equity firms. Business owners should prepare for opportunities amidst disciplined buyer behavior, emphasizing operational independence and financial transparency for successful exits by 2026.
Private equity leverage significantly enhances ROI through strategic financing. By using borrowed funds effectively, PEGs can achieve returns exceeding 25%, even reaching 900% with improved business performance, though risks increase with changing loan terms and expenses.
Private Equity is a diverse field with 17,000 groups in the US, offering substantial returns compared to public markets. Emerging models like Searchfunders fill gaps left by conventional buyers, catering to small businesses.
The planning fallacy leads business owners to overly optimistic growth predictions. Achieving significant value increase requires strategic planning, dedicated execution, and realistic timelines, highlighting the need for trusted advisors to navigate this complexity.
FPA Owner Transitions 