The “Silver Tsunami” refers to the wave of Baby Boomer business owners reaching retirement age. With Boomers owning nearly 40% of U.S. small businesses, and the majority lacking a formal succession plan, causing a surge of sales. For sellers, this creates both urgency and opportunity: act early, prepare well, and partner with buyers who protect your legacy.
The Clock Is Ticking
Picture this: you’re 67 years old, still walking the shop floor, still signing payroll checks, still knowing every customer by name. You’re proud of what you’ve built — and you should be. But time has a way of catching up.
You’re not alone. Across the country, millions of Baby Boomer owners are reaching the same crossroads. Economists call it the “Silver Tsunami” — the mass retirement of business owners born between 1946 and 1964. And like a tide, it’s not a matter of if it comes; it’s a matter of when and how prepared you are.
At Sixty74, we see this reality every day. Owners who spent decades building solid companies now face decisions they’ve never made before: when to sell, how to sell, and who to trust with the future of their people.
This post explores why more owners are selling now, what it means for valuations, and how you can make sure your life’s work doesn’t just become another statistic in the wave.
What Is the Silver Tsunami?
The term isn’t just a catchy headline — it’s backed by hard numbers.
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40% of U.S. small business owners are Baby Boomers.
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Millions will reach or surpass traditional retirement age in the next decade.
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70%+ of these owners have no formal succession plan, meaning they’ll likely sell or close.
For context: there are roughly 33 million small businesses in the U.S. If even a fraction of those owned by Boomers hit the market, we’re talking hundreds of thousands of businesses changing hands in the coming years.
The impact? More supply in the market. More pressure on valuations. More competition among sellers.
Why Are More Owners Selling Now?
1. Retirement Isn’t Waiting
After decades of long hours and personal sacrifice, many Boomers are simply ready to enjoy life beyond the business. Health, family, and lifestyle priorities are leading drivers.
2. Economic Uncertainty
Inflation, labor shortages, rising costs — these challenges weigh heavier on smaller companies. Many owners prefer to exit now rather than fight another cycle.
3. Market Timing
Multiples have been strong in recent years, and private buyers, family offices, and stewardship firms like ours are actively looking. Owners who act early may capture peak value.
4. Personal Life Events
Retirement isn’t the only milestone. Divorce, health issues, or estate planning often accelerate timelines.
The Seller’s Dilemma: Too Many Businesses, Not Enough Preparedness
Here’s the hard truth: when waves of businesses flood the market, the best-prepared companies rise above. The rest get lost in the tide.
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Prepared sellers: clean financials, strong management, diversified revenue, documented processes.
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Unprepared sellers: owner-dependent, messy books, customer concentration risks, and legal loose ends.
Guess which ones buyers like us are willing to pay top dollar for?
According to the Exit Planning Institute, 75% of owners regret selling within a year — often because they rushed, undersold, or picked the wrong buyer.
What This Means for Valuations
With more businesses on the market:
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Multiples tighten. Buyers have options, and competition among sellers increases.
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Prepared businesses hold value. Well-run companies still command premium prices.
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Distressed sales struggle. Owners who wait too long or don’t prepare often accept discounts.
This doesn’t mean now is a bad time to sell. It means now is the time to prepare so you stand out.
How to Position Yourself Ahead of the Wave
Step 1: Start Early (3–5 Years Out)
Selling isn’t a transaction; it’s a process. Early preparation means higher valuations and smoother transitions.
Step 2: Get Your House in Order
Financials, operations, contracts, legal. Buyers notice the details — and reward clarity. (See our post on 5 Steps to Make Your Business Sale-Ready Before Retirement for a detailed checklist.)
Step 3: Protect Your People
Your employees and customers are the backbone of your business. Choose a buyer who values continuity, not disruption. See our perspective in After the Sale: Why Sellers Choose Stewards, Not Just Buyers.
Step 4: Think About Transition, Not Just Transaction
The first 100 days after close often determine long-term success. Learn how we handle it in The First 100 Days: How We Transition Ownership Without Disruption.
Step 5: Pick the Right Partner
Price matters. But so does legacy. Ask yourself: Will this buyer protect what I built, or strip it for parts?
The Emotional Side of the Silver Tsunami
Numbers tell one story. But there’s another story — the deeply personal one.
For many owners, selling isn’t just about retirement savings. It’s about:
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What happens to loyal employees?
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Whether customers feel abandoned.
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If the brand you built survives the next decade.
This is where the wrong buyer can do damage. Teams were laid off. Culture lost. Community ties severed.
At Sixty74, we’ve seen those outcomes — and we’re committed to avoiding them. Our stewardship model is built on protecting what matters most to you while positioning the business for growth.
A Seller’s Roadmap in the Silver Tsunami
If you’re within 5 years of retirement, here’s a simplified timeline:
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Years 5–3: Clean up financials, diversify revenue, reduce owner dependence.
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Years 3–1: Build management strength, document processes, fix legal/tax issues.
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Final Year: Engage brokers/buyers early, set expectations, and design a thoughtful transition.
Conclusion: Ride the Wave, Don’t Get Swept Away
The Silver Tsunami is here. You can either get caught in the rush, selling under pressure, or you can prepare thoughtfully and maximize both value and legacy.
At Sixty74, we’re not empire builders. We’re stewards of great businesses. We protect teams, honor customer relationships, and scale what already works.
If you’re ready to start the conversation about selling — before the wave makes the decision for you — let’s talk.
