It’s the Baby Boomers Again
There is a caveat to all of this. The python digesting that huge lump known as the Baby Boomers is finally getting close to the end of its meal. It is retirement time for the Boomers. And that means that they are already offloading their businesses and it will accelerate over the next five years.
As with every market before it, the Baby Boomer life cycle will distort the private financing market. Since much of money stems from business trends, these happy times for private equity will come to an end. It’s as predictable as a Hollywood summer blockbuster. Just as we had tulip mania in Holland during the 17th century, or the dot-com bubble of 2000, now we have the private equity boom. In the middle of a bubble, it is hard to remember that all things do go ‘pop’.
The private equity bubble is already upon us: baby boomer businesses are already merging with or acquiring competitors in order to grow quickly. “Scaling up” means your company becomes more attractive to Private equity. If you're serious about attracting equity, you need to start today. There has never been a better opportunity for business owners and CEOs to access investment money. The emerging options of finance will change within five years, ride the tsunami wave of private investment and make sure you are not one of those business owners left far behind, gasping for help on the rocks.