The Silver Tsunami: Are Baby Boomer Business Owners Ready to Let Go?

There’s a generational wave crashing into the American economy—and it’s not just about retirement accounts. It’s about ownership. More than half of all small businesses in the U.S. are owned by baby boomers, and with thousands of them retiring every day, we’re staring down what experts are calling The Silver Tsunami: a tidal wave of business transitions that could reshape communities, industries, and family legacies.

But here’s the catch:
Just because you’re ready to retire doesn’t mean your business is ready to be sold.

A $10 Trillion Wake-Up Call

Roughly 3 million baby boomer–owned businesses are worth nearly $10 trillion. But according to industry estimates, only 30–40% will actually sell. The rest? They’ll either shut down or transition informally—often at a deep discount or worse, a total loss.

It’s like planning your retirement around selling your house… but forgetting to fix the roof, update the kitchen, or check the market.

When Should Exit Planning Start?

The truth is: 3–5 years before you hope to sell is the sweet spot. Longer, if your business is complex or family-owned.

Buyers aren’t just buying your brand or reputation—they’re buying your systems, your numbers, and your team. They want:

• Clean, consistent financials (at least 3 years)
• A business that isn’t solely dependent on you
• Documentation, repeatable systems, and processes in place

We’ve seen it firsthand. One business owner handled sales, operations, client service—you name it. When he sat down to sell, the buyer asked, “So what’s left when you leave?” If your business is you, then what you’re really selling is a job… with a nameplate on the desk.

Where Fiat Wealth Management Comes In

At Fiat, we’re not just portfolio people. We’re retirement architects—and that includes helping small business owners understand the real-world value of their business and plan for what’s next.

Here’s how we help:

• Realistic valuation: We’ll help you get a number based on market reality, not sentiment.
• Financial cleanup: Partner with your CPA to normalize earnings, separate personal expenses, and prep clean books.
• After-tax modeling: Know what your proceeds will actually look like, not just the top-line sale price.
• Structure guidance: Discuss options like installment sales, earn-outs, or tax-efficient strategies.
• Legacy planning: If kids or heirs are involved, we’ll loop in estate planning.
• Trusted referrals: We’ll connect you with vetted brokers, attorneys, and transition experts.

The Emotional Side of Selling

It’s understandable. You’ve spent decades building your business. Of course, it’s personal. But buyers don’t pay for memories—they pay for transferable cash flow and systems that run without you.

As Douglas Batts put it, “Your business may be your baby, but buyers want to see numbers, not baby pictures.”

Here’s a real-world example:
We worked with a client—let’s call him Jim—who ran a manufacturing company for 35 years. He expected to sell for $4 million. But after cleaning up the books, adjusting for customer concentration, and factoring in risk? The offer came in at $2.2 million. It was a tough moment—but once we mapped out how those proceeds could support the life he envisioned in retirement, he said, “I should’ve done this years ago.”

That’s the power of early planning.

Why This Matters—Even If You’re Not a Business Owner

• Family impact: If your parents own a business and don’t have a plan, the responsibility may fall to you. Are you ready?
• Community impact: Small businesses make up 99.9% of U.S. companies. How they transition affects jobs, neighborhoods, and economies.
• Market timing: More businesses for sale = a buyer’s market. If you’re not prepared, your business won’t stand out.

Final Thought

“Most people spend more time planning a vacation than planning the sale of their life’s work.”
Let’s change that.

Thinking about selling your business in the next few years? Let’s talk.
We can help you understand where you stand, what your options are, and how to move forward with confidence.

Fiat Wealth Management
Retirement. Redefined.