• Tue, Apr 30, 2024
  • Entrepreneur Opportunity - The Baby Boomer Business Transition is Underway
  • Pexels-mikhail-nilov-6931031
  • By Steven G. Niehaus MBA, CBI, CM&AP, M&AMI 

    For Sale: Baby Boomer Businesses 
    The impact of aging baby boomers, born between 1946 and 1964, on the business landscape is staggering. As these business owners retire, there are tremendous opportunities for younger Americans to become first-time business owners or expand their existing businesses. 

    The U.S. Small Business Administration (SBA) estimates approximately 10 million businesses owned by baby boomers will change hands between 2019 and 2029. While some baby boomers may sell or transition their business to family members or trusted employees, there will be a plethora of businesses available for entrepreneurs to acquire. 

    Why Acquire a Business vs. Start a Business?

    Acquiring a business avoids the initial startup costs and challenges of starting a business and instead focuses on building upon the success of the established business. An established business comes with an active customer base, experienced employees, and infrastructure.  The new owner can leverage the brand, reputation, and operational processes already in place. 

    Funding the Acquisition

    An established business with proven cash flow helps provide a buyer with more favorable loans, terms, and conditions to acquire a business. Whereas raising capital for a start-up may require equity partners, shared ownership and decision-making, or other less favorable terms and conditions. 

    The more common financing options for acquiring an established business include SBA loans and seller financing: 

    • SBA Loans: The SBA provides government-backed loans designed to help with small business acquisitions. These loans offer advantages, such as smaller down payments and longer repayment periods. 
    • Seller Financing: If a buyer obtains an SBA or other bank loan, seller financing of up to 10% is often requested.  Seller financing is also popular in smaller deals where SBA or bank financing is not available. Seller financing provides advantages for both a seller and a buyer.  For a seller, it defers some of their tax liability resulting from the business sale and provides a source of income during the term of the loan.  For a buyer, it may help instill a strong level of commitment from the seller to ensure they are successful as the seller still has skin in the game. 


    The baby boomer business sell-off presents a great opportunity for younger Americans who desire to own their own business or expand their existing businesses.  Ambitious entrepreneurs should research the various available businesses, assess their financial situation, and seek professional advice.  Whether it is a local coffee shop, home service business, or a manufacturing plant, it will be the next generation to shape the small business landscape in the U.S. 

    Contact me to get started! 
    Steve Niehaus, MBA, CM&AP, CBI, M&AMI
    [email protected]