When an asset has a grossly inflated price, it is by definition an asset bubble. Does this apply to many small businesses in the US? Probably yes, in my opinion. Most small businesses have a balance sheet listing some assets; therefore they are subject to being part of a bubble. There is an estimated $10 Trillion in private business equity in the US, largely in the hands of the Baby Boomer generation, according to research by the Exit Planning Institute. If there is a large market of assets, but not enough buyers, that is what creates the potential for a bubble. What I am not sure of is whether this situation will burst like a bubble and cause the next financial crisis, or if this is more like a balloon with a slow leak, thereby creating a drag on the US economy for many years.
Will There Really be a Business Exit Bubble for Baby Boomers?
Posted by Exit Promise under FinanceFrom http://exitpromise.com 3895 days ago
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