By Principal Farica Chang
For many baby boomer business owners, the thought of retiring and passing on the baton of their small to medium-sized business (SMB) is becoming not just a future possibility but an impending reality. According to the Exit Planning Institute, a staggering 70% of business owners over 50 are planning to exit their companies within the next decade. In more tangible terms, around 10 million baby boomer-owned businesses are expected to change hands by 2029. But, in order for an optimal move away from your organization, there’s more to think about than just your successor.
In today’s blog, we’ll explore why, as you consider your exit strategy, ensuring your technology is up to date is more than an IT concern—it’s a crucial aspect of securing a profitable and smooth transition.
Why Determine an Exit Strategy Now?
The entrepreneurial spirit that defines many baby boomers has played a role in their ownership of 50.9% of U.S. small businesses. Now, as more of them start thinking about handing over the reins, there are plenty of individuals and organizations looking to get a piece of the pie.
With high opportunities for innovation, these businesses make an attractive option for buyers. What’s more, many of these businesses, especially in sectors like financial services, manufacturing, and HIPAA-related industries, boast an established local presence, which reduces the workload involved in rebranding or improving customer awareness for new owners.
As 2026 approaches, market analysts, referencing The Benner Cycle, predict an optimal time for business sales due to expected economic upswings. This forecasted favorable market provides a significant incentive for owners to prepare for a smooth transition. Yet, even with their vast potential, the allure of these businesses can be severely diminished by outdated technological infrastructure.
By starting now, owners can strategically position their business to capitalize on this window, ensuring not just a successful sale but also a rewarding culmination of years of their blood, sweat, and tears.
The Risks of Outdated Technology
Acquiring any business comes with risks—risks that interested parties will seriously weigh up before committing to a decision. When a potential buyer evaluates your business, they’re not just looking at your financials or customer base; they’re critically assessing the state of your technology.
Outdated IT systems can be a significant barrier to exit for business owners born between 1946 and 1964, as they may suggest a need for substantial additional investment to bring your organization up to modern operational standards.
In practical terms, this could mean your business might be viewed as less efficient, potentially affecting its overall valuation. For example, legacy systems or insufficient cybersecurity measures can turn an otherwise attractive company into a liability-ridden prospect.
You might have a water-tight succession plan figured out, but if the technological environment you’re handing over needs too much work, you risk missing out on the full value of your business’s appraisal. Goodbye, swanky retirement plans.
Essential Tech Considerations for Today’s Boomer-Owned SMBs
To make your business an attractive option for buyers, consider the following technological upgrades:
- CRM and Data Management: Implement a modern Customer Relationship Management (CRM) system to streamline customer interactions and data management. This would allow your team to track emails and phone calls, analyze sales data, and personalize targeted marketing campaigns, all of which mean improved customer engagement and increased purchases.
- Cybersecurity and Compliance: Update cybersecurity measures to protect against data breaches, especially critical in industries like healthcare and financial services where HIPAA and other regulations govern data privacy. Non-compliance fines can get costly, so ease potential buyers’ worries by ensuring your business adheres to any necessary requirements.
- Contemporary Storage Solutions: To keep your data safe, it also needs to be stored somewhere secure. Implementing cloud-based storage solutions means that not only are you less likely to face data breaches, when they do happen, your business’s new owner stands to lose less money on recovery efforts.
- Modern Industry-Standard Software: For sectors such as accounting, specific software that meets industry standards is essential in keeping your team efficient, and your company competitive.
- Dedicated IT Support: Whether through in-house staff or managed IT services in St. Louis, ensure that your business has the IT support to maintain and upgrade systems as needed.
Don’t Forget the Human Factor
While integrating new technology is fantastic, it’s equally important to consider your team’s ability to adapt to these changes. Effective training on new systems is a vital component of your exit strategy that shouldn’t be overlooked. Your employees are already facing uncertainty about the company’s future—it’s best not to encourage a loss of key talent by throwing complicated new systems into the mix without guidance.
Final Recommendations
So, as you prepare your exit strategy with updated technology in mind, here are some actionable next steps:
- Evaluate Your Current Tech: Assess whether your current technology meets modern expectations and industry standards.
- Plan for Upgrades: If upgrades are necessary, plan them well in advance of putting your business on the market to avoid rushed decisions.
- Seek Professional IT Support: Engage with providers of managed IT support to ensure your business’s technology aligns with current best practices.
- Train Your Team: Invest in training programs to help your staff adapt to new technologies and systems, ensuring operational efficiency continues uninterrupted.
- Consult Industry Peers: Discuss with peers or IT consultants about the technology standards expected in your industry.
Updating and maintaining your IT infrastructure not only enhances your business’s efficiency, security, and output—it also significantly boosts its marketability and appeal to potential buyers. Remember, an effective exit strategy for SMB owners considers its technological preparedness in addition to the financial and structural readiness of the business. With professional IT support in St. Louis, you can ensure that your business remains competitive and appealing, paving the way for a profitable and successful departure from your life’s work.
Anderson Technologies: Real People Creating Business-Changing IT Solutions
All too often, IT support is frustrating and burdensome. Why not find a true partner to take the weight off your shoulders? For over 25 years, Anderson Technologies has leveraged its strengths for the benefit of its clients, pulling together the right team for every project. We are a dynamic team of IT professionals with over 200 years of combined experience and all the certifications you need to inspire confidence in our work. As a trusted advisor, we don’t just focus on today. We strive to take your technology lightyears ahead of your competition and scale with your business’s success.
Ready to move on from your business, but want to ensure your tech is in tip-top shape first? Contact us today to get started.
