What the Baby Boomer Wave Means for Resale Caregiver Agencies
If you’re following the home care market, you know how important the baby boomer wave is to caregiver agencies. As more and more baby boomers reach retirement age, the population of seniors in the U.S. is reaching record levels. As a result, demand for in-home caregiving has gone through the roof.
But one thing that doesn’t get discussed nearly as much is what this shift means for the ownership side of the industry. The fact is, many caregiver agencies are owned by baby boomers themselves. And as these business owners reach retirement age, many of these agencies will need new ownership.
This is one of the reasons many prospective franchisees are open to options beyond just new franchise opportunities. Instead, they’re focusing their efforts on resale caregiver franchises, which are projected to increase as agency owners age out of the business.
Why More Boomers Retiring Means More Resale Caregiver Agencies
To understand the scope of the baby boomer retirement wave and the impact on caregiver agencies, you need to look at the numbers.
According to the U.S. Census Bureau, adults over 55 now make up over 28% of the national population—a historically unprecedented number. But among small business owners, older adults are especially well-represented. A 2019 study found that 57% of American small business owners were over the age of 50. Another recent study found that individuals aged 50 to 64 start businesses at higher rates than any other age group.
In certain industries, these statistics are further skewed. A quick overview of the caregiving sector will find many agency owners in this age bracket. This makes sense when you consider the kind of work that caregiving entails and the life experiences that would lead someone to this industry.
But it also means many caregiver agencies will be changing hands over the next 10-15 years. In many cases, these ownership changes will take place internally, with ownership transferred to family members or employees.
In other cases, these agencies will be put up for sale, and this gives entrepreneurs a great way to enter the caregiving market.
What This Means for Prospective Franchisees
In other articles, we’ve talked at length about how the market for home care franchises has changed, making resale franchises a smart choice for many prospective franchisees. The effect of the baby boomer wave on the resale market only underscores this point.
More retiring baby boomer agency owners means more agencies available on the resale market. This is music to the ears of anyone who’s looking for an entry point into the home care sector.
But it also means a higher rate of quality resale opportunities. Remember, this is a wave of business owners who aren’t leaving because of problems in their business. On the contrary, many of these businesses are among the best-run caregiver agencies in the country.
At the same time, most of these owners care deeply about the business they’ve built. Because of this, they want to find the right person to take over their agency. If you’re that person, it could mean a more favorable price point. In many cases, it also means the owner is willing to assist during the transition. They want to see you succeed, and they’ll go the extra mile to make that possible.
Researching caregiver agencies for sale? Learn more about Visiting Angels® franchise opportunities by calling 800-365-4189 or submitting an online request.