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Generational Group
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Welcome to the Google Plus page for the Generational Group.

The Generational Group brings high-quality Wall Street financial services to Main Street businesses located throughout North America.

You can find our more about our services at www.generational.com

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The Generational Shift: How Baby Boomers Can Benefit From The Millennial Takeover

Read the full post at: bit.ly/Generational-BabyBoomers-Millennials

The business landscape is changing dramatically. Owners of small businesses across the United States look extremely different than those a decade ago. Millennials are now at the forefront of these companies, rapidly supplanting the baby boomer generation.

Earlier this year, the BNP Paribas Global Entrepreneurs Report 2016 indicated that millennials are launching businesses at twice the rate of baby boomers. This hasty growth is matched by the rise in household income among this age bracket, with a quarter of households with an annual income of over $500,000 headed by millennial breadwinners.

Times are changing, with a new breed of business owner quickly outstripping previous generations. Retiring baby boomer owners are set to sell assets worth up to $10 trillion within the next two decades, representing the value of approximately 12 million privately owned businesses. Evidently, the coming years are set to be a prime selling market for baby boomers with an eye on retirement (especially for those that plan ahead and act quickly).

Undoubtedly, there are some that might see this generational shift as problematic. Should you be worried about the difference in approach a millennial buyer would bring to your small business? Evidence suggests a millennial owner would make significant changes on a company’s existing structure, but this is not necessarily a bad thing:

Only 48% of millennial small business owners are Caucasian, compared to 87% of owners aged 65 or over – this has led to more diverse, inclusive workforces within firms that are more representative of the cultural landscape of the US
Millennials work significantly less hours (38.8) than baby boomers (47.1) – new owners are taking advantage of technology to save time and show a greater appreciation for a balance between work and home
Millennial owners are more keenly aware of the need to keep up with technology. While the vast majority (83%) of all owners recognize the need to develop technology to maintain a competitive edge, 87% of millennial owners consider their businesses to be on trend, compared to only 67% of baby boomers
This is not to say that businesses owned by baby boomers are backwards. There is plenty of evidence to suggest that while many boomers will be selling their companies in the coming decades, a significant number of these will be to investors in the same generation. Nevertheless, there is a pressing need to consider the future, as one day the current millennial generation will represent a majority of small business owners in the country.

The next 5-10 years represent an excellent opportunity for baby boomers considering retirement to recoup substantial capital by selling to millennials (or any buyer type for that matter). Stereotypes surrounding this generation’s ability to drive forward existing small businesses are being eradicated. Indeed, Chase for Business’ survey in December 2015 illustrated that 68% of millennial owners consider growth in their business a primary concern, compared to only 53% of baby boomers.

This focus on growth is key, as it indicates that many prospective millennial buyers would be interested in taking on an existing company and enhancing it, as opposed to starting from the ground up. This opens up opportunities for those looking to sell in the coming years in securing excellent returns. If an aspiring owner sees potential in pushing forward an active small business, they can spend to match this potential.

Many holding off on selling might be reluctant to break their emotional bond to their small business, wary of how it could change under completely different leadership. However, selling to a millennial owner could be beneficial in this regard, as these young adults will crave coaching, especially if this is their first foray into business ownership.

While millennial owners will undoubtedly introduce new ideas that they are more accustomed to (social media, digital technology, diversified workforces), they will also have a desire to learn and understand the heritage of their investment. This means baby boomers stepping aside can still impact the direction of their former company in the early stages, setting it up for sustained prosperity in the long-term (and maintain the legacy they have built into the business).

Clocks will continue to tick forward and with them a new generation of owners is emerging. Instead of dreading this imminent transition, there are numerous benefits, both in terms of company value and securing its legacy, that make selling to millennial investors a practical option for outgoing baby boomer business owners.

Carl Doerksen is the Director of Corporate Development with the Generational Group.

© 2016 Generational Group, LLC All Rights Reserved

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International M&A Advisor Winner

(You can read the full article here: www.generational.com/insights/international-m-a-advisor-winner)

Being humble folks, we tend to avoid bragging in this blog. However, The M&A Advisor recently recognized our work on Stern Rubber, a transaction that closed last October. I briefly mentioned it in our last blog posting since it was an interesting transaction. Here are some excerpts from the announcement:

Generational Capital Markets, Inc.("GCM", part of the Generational Group), member FINRA/SIPC, an advisor to privately held businesses for mergers & acquisitions, is pleased to announce that it has been recognized by The M&A Advisor, winning the following award:

Acquisition of Stern Rubber Company - Corporate and Strategic Acquisition of the Year (From $10MM – $25MM)

Stern Rubber was founded in 1969 as a manufacturer of compression, injection and transfer molded products, as well as extruded rubber products. Stern specializes in bonding rubber to plastic, metal, and other materials. Industries served are extremely diverse and include: industrial plumbing, power sports, agricultural, and many others. Stern was acquired by Zhongli North America, Inc., headquartered in Shanghai, China. The acquisition closed on October 26, 2015.

Managing Director Chris Heckert was the GCM M&A advisor for Stern throughout the transaction. He stated, "We had numerous interested buyers throughout our process. Many wanted to relocate this business away from its location in Northern Minnesota, but the client strongly preferred keeping the business, and its jobs, in the community. I'm proud we achieved that important goal."

"With cross border M&A volumes at record levels, we attribute the continued increase in transnational deal making to the new generation of global M&A experts whose intimate knowledge and expertise in the cultural, financial and legal arenas are redefining our industry," says David Fergusson, President and Co-CEO of The M&A Advisor. "The 2016 International M&A Award winners represent the best of the cross border M&A industry in 2015 who earned these honors by standing out in a group of very impressive finalists."

Not only is obtaining this award a great honor, it shows that our peers in a competitive industry recognize the skills of our deal teams and deal makers. It is important to note that this transaction carried with it the desires of the owners to ensure that the company would remain in its current location. Our deal makers worked diligently to find a buyer who would fulfill this wish, and not only are they staying in their current location, the new owners also have active plans to expand the facility and hire more local folks. A true win-win for all parties involved!

Our Consultative Nature

This is just one example of how we work hard to create deals for our clients that meet (and hopefully exceed) their personal, financial and business goals. In fact, in this case, we actually encouraged the seller to walk away from a buyer who clearly stated that they were going to consolidate operations and close down the Stern Rubber facility in Staples, Minnesota.

We recognize that every transaction we work on carries the hopes and dreams of an entrepreneur and his/her family, loved ones, employees, and community. It isn’t always easy, but our deal teams do their best to first understand our client’s needs by simply getting to know them on a personal level and then taking that knowledge into account as we begin to approach buyers. After years and years of doing this, our teams are exceptional at it, which is how we win industry awards.

To find out how our services might help you achieve your dreams, please call us at 877-213-1792 and ask to speak to one of our Senior Business Advisors. We don’t work with every business owner that reaches out to us because frankly, not every business owner is ready and prepared for a transaction. But for those that are, you will find no better M&A advisory firm servicing the lower middle-market in North America.

Note: Generational Capital, LLC is a Dallas, TX based merger & acquisition advisory firm. Generational Capital wholly owns Generational Capital Markets, Inc., member FINRA/SIPC. More information can be found at www.gencm.com. Generational Capital and Generational Capital Markets are affiliated with Generational Equity, LLC.

Carl Doerksen is the Director of Corporate Development at Generational Equity, part of the Generational Group (Generational.com).

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A+ rated by the +Better Business Bureau  (BBB)

With 99.99% of clients satisfied with our service, we are A+ rated by The Better Business Bureau.

Read the full article on http://www.generational.com/insights/a-rated-by-the-bbb

We are extremely proud of our A+ rating with The Better Business Bureau. We have worked hard to build such strong working relationships with our clients over the years, and their consistent happiness with our service with 99.99% of clients satisfied with our service, we are A+ rated by The Better Business Bureau.

We are extremely proud of our A+ rating with The Better Business Bureau. We have worked hard to build such strong working relationships with our clients over the years, and their consistent happiness with our service is a reflection of the high standards that we achieve throughout the business.ction of the high standards that we achieve throughout the business.

What does an A+ rating actually mean?

If you take a look at The BBB website for yourself, you will see we are one of just a handful of companies that can claim such an impressive and consistent rate of client satisfaction. But what does our A+ rating actually mean?

The BBB bases its ratings on a scoring scale of 13 factors. These are things like the volume of complaints, the number of unresolved or unanswered complaints, failures to address a complaint pattern and the amount of time a company has been in business. In order for us to achieve our A+ rating, we need a score of at least 97 out of 100. But because The BBB also uses negative scores in their rating system, our score as a percentage of the entire scale is actually more like 99.2%. Or, in other words, we achieved perfect scores on at least ten out of the 13 factors.

Taking customer care seriously

But we’re not perfect. Miscommunication happens and on the very rare occasions when one of our clients is not completely happy with our service – currently less than 1 out of every 1000 clients – we always act quickly to ensure a swift settlement and satisfactory resolution for the individual or company concerned.

In fact, you can see this for yourself on The BBB website. We have been able to respond to and resolve all of the 11 complaints left about our business just by talking to the client and understanding their needs. No bad blood, no legal action, just a swift and satisfactory solution to small misunderstandings.

The vast majority of these clients have since apologized for going to The BBB without speaking to us first. Indeed, many of them have actually written to The BBB, requesting that their reports are taken down. Unfortunately, The BBB lists all complaints for a minimum of three years. So, while many of our clients wish their comments weren’t on the website, The BBB continues to show them. Although our clients and ourselves may not think it is an accurate reflection of the facts, the resolved issues listed nevertheless show our commitment to customer care.

If you are a client and wish to speak to someone about an issue, or leave feedback about our service, please feel free to send us a message, or speak to someone immediately using our urgent contact number. Business owners that are considering using us to grow and exit their companies can also use the above methods of contact in order to speak to someone in more detail about our service and our company in general.

Whatever your issue or query, big or small, we’re dedicated to helping you as best we can. And that’s why The BBB rates us so highly.

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Advice when Selling a Business

When it comes to closing a deal, many business owners have an emotional attachment to their company, and can find themselves so eager to consummate the deal with the right buyer, that they end up compromising on the final sum that it sells for.
Generational Equity (part of the Generational Group) managing director of mergers & acquisitions, Terry Mackin, recently gave his professional comment on this matter in a piece for the New York Times. The article followed the story of multiple owners who had committed seemingly insignificant mistakes while running their business, that later created problems for them when putting their company on the market.

See this story and more on www.generational.com/insights

To read more on this story check out the full +The New York Times  article about advice when selling a business here: http://bit.ly/GenerationalOnNYT.
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Thomas Korosec interviews Generational Equity president Ryan Binkley to learn how the North Dallas firm hopes to dominate in small and middle-market mergers and acquisitions.

Read about 100 mile-per-hour winds and marina's catching fire as Ryan Binkley explains how there is some truth in the cliché that every deal must die at least three deaths before it's done.

Ryan Binkley founded Generational Equity (part of the Generational Group - www.generational.com) in 2005 and is closing in on his 500th sale. The company has been climbing the national M&A advisory firm rankings.

Read the full story on +D Magazine  (bit.ly/Generational-in-DMagazine) of How Generational Equity Hopes to Corner the M&A Market here. The full article was first published in D CEO in July 2016.
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