There has long been this quandary around when and how the baby boomers where going to exit their practices. In fact, most of the professions have seen the rise and fall of several attempts to pre-empt this event through the implementation of consolidator/aggregator type models during the past decade or so. However, as the story goes, those at the older end of the baby boomer bracket started reaching retirement age in 2011. Did we expect a flood of departures? No, probably not. However, many of those potential candidates for retirement are saying to us that their departure is a way off yet.

On the flip side of this consideration is concern on the part of the baby boomers as to whether Gen X & Y are actually interested in being practice owners. We experienced a time, probably around 5 8 years ago, where accounting firms reported a sheer lack of senior employees interested in being equity holders. However, that trend is certainly not being experienced now. Rest assured, given the number of younger, would-be practitioners in search of acquisition opportunities throughout the country, as well as the significant number of valuations that we are completing for this very purpose, the Gen X or Y purchaser is certainly alive and well.

That said, its not simply a matter of sticking the for sale sign out the front of the firm and expecting Gen X & Y to run you over with enthusiasm. Its about making sure that you have an attractive offer, that the practice is sale ready, that the proposal is market-competitive. Please dont think for a minute that Gen X & Y will part with their hard earned dollars, what little they probably have, just because you tell them that its a good deal. More and more of these future practice owners are seeking advice, running the numbers and doing their due diligence. So its imperative to also be well informed, be realistic and have an opportunity that will get attention.

If you are a multi-partner firm, becoming an attractive proposition is even more important. Do your current would-be replacements look at the firm and its owners and say no way would I want to be part of that? If so, this needs to be addressed to ensure your firm has future options beyond the simple act of a complete market sale. You want to make your firm a place where all senior employees relish the opportunity to be owners.

However, if you are a Gen X or Y, youre in luck because your choice of equity opportunities will be increasing and improving during the coming decade or so. As more of our baby boomer practitioners move onto their next phase of life (enjoying the fruits of their labour), those seeking to buy fees or a firm, or obtain equity within their current practice, will have opportunities galore and the pick of the bunch. But, if we flip this scenario, from the baby boomers perspective, the number of future purchasers is likely to reflect a smaller number than those potentially seeking a sale. Even more reason to pretty up your practice to avoid being one of those baby boomers without an easy exit strategy.

Regardless of how and when it takes place, the retirement of the baby boomers will represent the most significant generational change to be experienced of its time. For Gen X & Y, this will represent an opportunity of a life time.