Baby Boomer Businesses Are Up For Grabs — Here's How Entrepreneurs Can Benefit In 2025

A less years ago, I started having conversations pinch babe boomers who had spent their lives building companies from nan crushed up. As personification who useful successful mergers and acquisitions, I was often asked questions astir really they could clip disconnected a legacy, monetize nan discarded of their business or, successful immoderate cases, simply find a location for their companies truthful they could move on.

For some, nan determination was driven by a desire to bask nan rewards of their difficult work; for others, it was a matter of necessity — a wellness business aliases shifting family priorities.

What struck maine was really often these conversations were happening and really akin nan stories sounded. It became clear this was not a bid of isolated cases but information of a larger, generational displacement that is reshaping nan entrepreneurial landscape.

The demographic reality is this: 41% of each US businesses are owned by babe boomers (according to a study by Guidant Financial), pinch 34 cardinal mini to mid-size businesses successful nan US, according to nan US Small Business Administration Office of Advocacy, this equates to complete 12 cardinal small-to-mid-sized enterprises owned by boomers.

Related: Why Baby Boomer-Owned Businesses Need a Revival Strategy Now

1. A buyer's market: Attractive valuations abound

With an influx of business owners looking to sell, we're entering an business wherever buyers personification nan precocious hand. The proviso of businesses for discarded is outpacing demand, starring to favorable valuations. This is peculiarly existent for companies dense reliant connected their founders, wherever purchaser concerns astir activity transitions tin small worth tags.

In 2024, nan mean EBITDA aggregate for US backstage transactions was 4.8 arsenic of Q3, according to Business Valuation Resources — a baseline that galore deals fell beneath owed to marketplace saturation. For aspiring entrepreneurs, this intends nan expertise to get businesses astatine prices that would personification been unthinkable conscionable a less years ago. The result? Entrepreneurs tin unafraid overmuch worthy for each dollar invested, a uncommon opportunity to participate aliases turn successful competitory industries.

Whether it's a bakery, a tech consultancy, aliases a manufacturing firm, nan clip is ripe to get businesses that, pinch nan correct management, tin output outsized returns.

Related: Best Cities for Boomers Buying a Home, Looking to Retire

2. The M&A balanced of bargain now, net later

In my decades of acquisition facilitating M&A deals, I've noticed an intriguing displacement successful woody structures. Baby boomers are prioritizing bequest complete lump sums, often showing overmuch liking successful uncovering a worthy steward for their life's activity than squeezing each past dollar from a sale. In fact, 60% of boomer business owners are reported to beryllium unfastened to seller financing options.

This sentiment opens doors for imaginative financing solutions. Deal structures specified arsenic vendor take-back loans, earnouts, and banal rollovers personification spell progressively common, enabling buyers to trim upfront costs. Think of it arsenic nan M&A balanced of "buy now, net later." For cash-strapped entrepreneurs, this intends businesses are now incorrect scope that mightiness personification been financially prohibitive successful a overmuch seller-driven market.

Baby boomers' alternatives — specified arsenic shutting down wholly — are acold small appealing, further incentivizing flexibility. Entrepreneurs tin discuss deals that activity for their budgets while preserving nan seller's bequest and ensuring a soft transition.

3. Scaling done roll-ups amplifies value

The conception of a roll-up — acquiring respective smaller businesses and combining them into a larger, overmuch businesslike cognition — isn't new, but it's ne'er been overmuch accessible. The Silver Tsunami is creating a premier business for roll-ups, peculiarly successful fragmented industries wherever mini businesses dominate.

Consider this: acquiring aggregate businesses successful nan aforesaid assemblage allows entrepreneurs to execute economies of scale, streamline operations, and professionalize management. This onslaught doesn't conscionable adhd worthy — it reduces risks. For example, a azygous mini business whitethorn struggle to walk a full-time CEO aliases CFO, but a larger entity formed done a roll-up can.

Entrepreneurs aiming for semipermanent maturation tin leverage roll-ups to build robust enterprises pinch higher valuations. Whether you're acquiring mini accounting firms, logistics providers, aliases healthcare practices, nan imaginable for synergistic gains is unparalleled.

With each babe boomers crossing nan 65-year-old spot play by 2030, nan metallic tsunami is forecasted to proceed for nan adjacent decade. However, nan astir favorable conditions won't past forever. For boomers, trading their businesses is profoundly personal. For entrepreneurs, acquiring those businesses represents overmuch than financial summation — it's a chance to build connected decades of difficult work, sphere conception jobs, and proscription guardant a legacy.