The Silver Tsunami is Here.

In Alison Coleman's recent Forbes artilce, she writes that despite 2.3 to 3 million baby boomer-owned small to medium sized businesses (SMBs) expected to transition in the next decade, only half of retiring owners have formal succession plans in place. The impact on communities could be devistating, Coleman writes. Without successful transitions to new owners, business closures could occur. "Closures would mean job losses, weaker household incomes, and tighter local labor markets, while the disappearance of family-run shops and service providers would push spending toward national chains or online retailers, leaving many communities economically and culturally poorer," states Coleman.

Carolyn Rodz, cofounder of Hello Alice, shared this perspective. "Most SMBs are deeply tied to their owners, and without documented processes or a clear transition plan, the business becomes harder to sell or hand down. In family-owned companies, that challenge is amplified by emotional dynamics, legacy pressure, internal conflict, or simply the next generation not wanting to take the reins," she said. The Exit Planning Institute found that nearly 50% of business owners involuntarily exit their businesses due to the 5 Ds: divorce, disability, disagreement with a partner, economic distress, and death.

The Silver Tsunami has created a flood of businesses available for sale, making it a buyer's market, states Coleman. Further, Coleman writes, boomer sellers' preference to prioritize legacy preservation over maximizing cash upfront offer buyers more opportunities to close the deals. Boomer sellers consider more creative deal structures like seller financing, take-back loans, earn-outs, and equity rollovers, which significantly reduce the buyer's initial investment.

Read the full article here.