How Baby Boomer Business Exits Are Creating a Golden Opportunity for Savvy Entrepreneurs — Especially in This Industry Here's what entrepreneurs and investors need to know about the "Silver Tsunami."
By Al Sefati Edited by Chelsea Brown
Key Takeaways
- Baby boomers are retiring and preparing to sell their profitable and well-established businesses in various sectors, creating a great opportunity for the next generation of entrepreneurs.
- The most attractive and fast-selling businesses are those that have embraced modern technology — which is crucial for growth, customer loyalty and operational efficiency.
- Among all sectors, independent used car dealerships and repair centers stand out due to their ability to flourish even in tough economic periods.
Opinions expressed by Entrepreneur contributors are their own.
As baby boomers retire, they are not only exiting their employment but also their companies. This demographic trend, known as the "Silver Tsunami," is creating unprecedented opportunities for investors, business owners and entrepreneurs.
According to data from the U.S. Census Bureau, 52.3% of U.S. employer-businesses are owned by people who are 55 or older, and many of them are preparing to exit. These are not new ventures; they are solid, revenue-producing businesses with long-term customers and seasoned staff. As such, they are especially appealing to the next group of owners. But in the current market, one major differentiator separates fast-selling businesses from stuck ones: technology adoption.
Top-performing businesses that boomers are selling
Boomers have built a broad range of small and mid-sized companies. The most prevalent industries on the lists are:
Service companies: Financial planners, insurance brokers, marketing consultants and medical centers
Retail and online: Conventional retail stores and online stores with solid sales histories
Tourism and hospitality: Small hotels, travel agencies and activity-based businesses
Manufacturing: Small manufacturers, especially in specialty or local markets
Real estate and construction: General contractors, home repair services and specialty construction firms
Food and beverage: Neighborhood restaurants to multi-unit quick-service restaurants
Maintenance services: Janitorial, HVAC and property maintenance companies
While all of these sectors are promising, there is one aging industry that outshines the rest in innovation and investment: used car dealerships.
Automotive retail and repair
Independent auto dealerships and auto repair are one of the most dynamic niches in the business-for-sale universe. The business, however, is dramatically changing, and success is dependent upon a fundamental shift: embracing technology. The used car selling business is flourishing regardless of the economic booms and busts. In fact, IBISWorld reveals that U.S. used vehicle sales are now over $150 billion in 2024 because new cars are so expensive and consumers are changing their buying habits.
Those dealerships that receive the most publicity have something more than a stock of vehicles; they have a modern technology platform.
From oil stains to cloud stacks
The old image of a lot of old cars, paper logbooks, cold calls, and paper inventory has been replaced by all but the leading operations with cloud-first, AI-based systems. Leading dealers now use digital and AI-powered transformation.
New auto dealers and repair centers, often integrated (but not all the time), are more digitally savvy, transforming the old classic auto dealerships with latest AI and digital shifts and trends, AI-based chatbots, smart follow-ups and cloud-based software to easier manage customer data, inventory, financing, transaction and post-sale follow-ups.
In short, digital transformation is no longer an option; it is an imperative for entry into the market.
Market realities and what to watch for
Most of the available businesses are small and medium-sized. They are profitable but do not have a succession plan. This offers a good platform for entrepreneurs and investors to come in and promote operations. Differentiation is a major aspect based on technology. In business sectors like auto resale, contemporary systems can play a major role in business value and buyers' interest.
Established customer bases and operational history provide a runway for success, but tech-savvy buyers should check to see what the current business's tools and systems are like.
Mentorship from retiring owners is common, especially among boomers who want to ensure their legacy endures. This can be a valuable asset.
Related: Baby Boomer Businesses Are Up for Grabs — Here's How Entrepreneurs Can Benefit In 2025
A generational opportunity, if you're ready
Whether you're a go-getting entrepreneur looking to purchase a successful model or an investor seeking to expand an heirloom business, this generation shift is a unique opportunity. But in today's market, owning a heritage alone is not enough. Buyers must analyze not just the brand or top line, but the underlying technology and digital transformation as well.
Social media and AI/LLM tools are challenging the way consumers search for products or services, shop, transact and communicate with businesses, and this could be an excellent opportunity for newer generations of entrepreneurs to acquire older businesses and transform them into agile, digital-first, customer-centric, enterprises with personalized experiences to align with consumers expectations today and drive more business and loyalty.
