MIDDLE-MARKET
BUSINESS OWNERS: GETTING YOUNGER, SELLING SOONER
Minneapolis, Minnesota - America's entrepreneurs are younger today and
more interested in selling out in order to take advantage of the record
activity in the mergers-and-acquisitions marketplace, according to a new
study of middle-market business owners.
More than 4,500 owners of businesses with enterprise values up to $150-million
were surveyed in 1997 by Venture Business Group, a national mergers-and-acquisitions
firm headquartered in Minneapolis, Minnesota. The Venture Business Group
Index is a regularly conducted survey of private, middle-market business
owners on relevant issues of the day which may impact their companies.
One-third of the business owners participating in the Venture Business
Group Index were from 41 to 50 years of age, with 54 per cent under 50.
Nearly 70 per cent of the owners responding started the businesses they
own today. Twenty per cent bought their current businesses, while 12 per
cent acquired their businesses via family succession, according to Venture
Business Group Index.
Among the respondents, 17 per cent have owned their businesses less than
5 years and 23 per cent have owned their businesses from 6 to 10 years.
"About 40 per cent of these middle-market business owners indicated
that they are planning to begin the selling process within the next 12
months, and more than 60 per cent are planning to exit their businesses
within 24 months," reports Mr. Sajady, Managing Director of Venture
Business Group.
"Business owners recognize that they have most of their net worth
tied up in their business and, therefore, they are looking for the most
advantageous way to liquefy this major asset. Most also realize that the
current active mergers-and-acquisitions marketplace, with a surplus of
well-funded buyers, presents an excellent opportunity to reach their liquidity
goals. The only problem is that no one can predict just how long these
favorable market conditions can be sustained," adds Mr. Sajady.
Now in its 14th year, Venture Business Group assists private, middle-market
business owners evaluate, build and sell their companies at the appropriate
time and for maximum proceeds.
For More Information Contact:
Corporate Communications
Venture Business Group, Inc.
601 Carlson Center
Suite 1050
Minnetonka, Minnesota 55305
Tel: (952) 449-5247
FAX: (763) 559-7798
merger@vbgi.net