The Silver Tsunami Arrives: Baby Boomers and the Great Business Exit

For years, economists have warned of the “Silver Tsunami”—the massive generational transition as Baby Boomer business owners retire. That wave has officially arrived. Nearly half of privately held businesses in the U.S. are owned by individuals over age 60, and many of those owners intend to exit within the next decade.

The Scale of What’s Coming

Estimates suggest more than 12 million businesses could change hands over the next ten years, representing over $10 trillion in wealth. This is the largest intergenerational transfer of business ownership in modern history.  The challenge is readiness. Surveys consistently show that fewer than one-third of Boomer owners have a formal succession or exit plan in place. Many remain heavily involved in day-to-day operations, with key customer relationships and knowledge concentrated in their own heads rather than in institutional systems.

As retirement looms, these owners face mounting pressure to act—but waiting too long risks eroding value or leaving employees and families without direction.

Why Some Exits Fail

The number one reason business transitions fall apart isn’t lack of buyer demand—it’s lack of preparation. Common pitfalls include:

• Overdependence on the founder for sales or operations
• Incomplete or outdated financial documentation
• Unrealistic valuation expectations
• Emotional reluctance to let go

Even well-run companies can lose leverage if the sale process is rushed or if external events (interest rate spikes, market corrections, health issues) force a reactive exit.

The Opportunity Behind the Wave

For prepared owners, the Silver Tsunami represents an opportunity to exit on favorable terms—while creating continuity for customers and employees. For younger entrepreneurs, it represents an unprecedented acquisition opportunity.

Many Boomer owners are open to flexible deal structures such as seller financing or gradual handovers. These arrangements can bridge valuation gaps and keep businesses locally owned rather than absorbed by large competitors.

How to Prepare Now

Owners should view exit planning as an extension of financial planning. Steps to take include:

1. Obtain a business valuation to understand current market value and identify improvement areas.
2. Build a transition team—CPA, attorney, and financial planner—to coordinate tax, legal, and estate considerations.
3. Clarify personal goals—retirement income, family legacy, charitable giving—so the exit supports life after ownership.

The Bottom Line

The great Boomer business handoff will reshape communities, industries, and markets. Those who treat the exit as a long-term process rather than a one-time event will protect both wealth and legacy.

At FPA Owner Transitions, we work closely with business owners to prepare their companies and personal finances for successful transitions—ensuring that decades of hard work translate into lasting financial independence.