The largest demographic group within the United States today is the baby boomer generation, or the approximately 78 million Americans who were born between 1946 and 1964. Baby boomers also account for a sizable portion of American small business ownership. The capital sourcing network Axial estimates that as much as 66% of American small businesses are owned by baby boomer entrepreneurs.
In 2011, the oldest boomers turned 65 years of age, a period at which many people cross over into retirement. Pew Research reports that for the next 17 years, approximately 10,000 people will reach retirement age each day, a trend which is set to give rise to the largest transfer of wealth in American history. It is estimated that over the 15-20 years, more than 25 million small business worth over $17 trillion in the United States will be sold. For the private equity sector, this massive transfer of generational assets holds unprecedented opportunities for profitable company acquisitions and business scaling.
Ohio-based LD Holdings is being strategic in how it is approaching these opportunities. Tightened banking regulations and compressed buyer interest in companies that fit this profile have left this market largely untapped. As a result, there is room for LD Holdings to strengthen its influence among what it perceives to be a largely financially underserved population. In the process, it anticipates that it will grow into a recognized buyer of baby boomer businesses.
LD Holdings has set its target prospects to be established, profitable companies that fit a range of stringent criteria. Ideally, an acquisition target will have $2-$20 million in revenues, quality management teams and personnel, brand equity, and potential for building up a portfolio that generates strong venture capital returns with minimal venture capital risk. LD Holdings plans to acquire 50 of these businesses and consolidate them wherever possible into cohesive business units.
In these efforts, LD Holdings is bolstered by its experienced Chairman of the Board, John R. Ayling, a figure well-acquainted with the baby boomer generation and the significant economic opportunities presented by its exit from the American small business landscape. LD Holdings will also be leveraging its strategic relationship with Internet Marketing Consortium and its extensive database of 250,000 potential companies, 800 entrepreneurial figures, and growing numbers of institutional and non-institutional investors to capitalize on these historically unprecedented trends.
For more information, visit: www.ldholdings.com
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