The Silver Tsunami and Small Businesses
A demographic shift of unprecedented scale is underway in the US—one that will transform the landscape of small businesses and small business ownership.
Dubbed the Silver Tsunami, this wave of baby boomer retirements is poised to reshape the market in ways no business owner or broker can afford to ignore.
What Is the Silver Tsunami?
The Silver Tsunami refers to the surge of baby boomers entering their retirement phase. By 2030, all members of this generation will be over 65, and by 2035, seniors will outnumber children for the first time in US history.
Baby boomers own nearly 50% of small businesses in the US. As they retire, they are faced with decisions about the future of their businesses—whether to sell, pass their business on, or simply to shut down. These choices have a substantial impact on business value, succession planning, and meaningful implications for small business owners and the professionals who serve them.
Why is this important for small business owners?
Wave of Business Transitions: The unprecedented number of businesses hitting the market will likely cause a reduction in business valuations. With so many others looking to sell, prudent business owners need to make strategic preparations that maximize their company’s value in advance of exiting their business.
Limited Supply of Professional Advisors: Transitioning from business ownership is complex and challenging. While professionals such as business brokers exist to help, there are simply not enough to service the rising demand. With an estimated 30,000 small business owners for every business broker in the US, the competition for skilled expertise will be fierce. This shortage means that many owners may struggle to find the guidance they need to navigate a successful transition.
Retirement Planning: A key aspect of retirement planning is understanding your sources of wealth. For most small business owners, their business is their biggest asset. Underestimating its value could mean leaving money on the table, potentially jeopardizing retirement plans and long-term financial security.
Why is this important for business brokers?
Increased Demand for Services: As the market floods with baby boomer businesses, the demand for expert services will surge. Business brokers who can efficiently guide clients through the complexities of the selling process will not only capture immediate opportunities, but also establish themselves as leaders in this transitional market.
Increased Competition: The surge in demand will attract new brokers to the profession, leading to intense competition within the business brokerage industry. Established brokers must distinguish themselves by offering superior expertise and unmatched client service.
Maximizing Sale Value: In a crowded marketplace, business brokers must go beyond the basics to maximize the value of their clients’ businesses. Brokers who invest in building a thorough understanding of their client's unique strengths and selling points, will position their listings for success.
The ‘so what?’
The Silver Tsunami will bring about an unprecedented wave of small business transitions as baby boomers retire. For both business owners and brokers, this shift presents significant challenges—and even bigger opportunities.
As a business owner, planning your exit strategy early is crucial. Whether you're looking to sell, pass down your business, or position it for future growth, understanding its true value is the foundation for making informed, successful decisions in this transitional phase.
For business brokers, the increased volume of transactions means heightened demand and intense competition. To stand out, you'll need an efficient, streamlined process that allows you to focus on what matters most—connecting buyers with sellers, and maximizing value for your clients.
Whether you’re a small business owner or a business broker, an informed Opinion of Value can be an essential first step in navigating this phase successfully. Discover how dealNavi's services can help you take control of your next chapter.