The ‘Silver Tsunami’ is here: 48% of Boomers want out in three years

Scott Bushkie

Guest Columnist

September 8, 2025

For more than a decade, economists and M&A advisors have been warning of the “Silver Tsunami.”

The phrase describes what happens when Baby Boomer business owners – a generation who founded, grew and ran millions of privately held companies – begin to retire en masse.

For years, it was a prediction. 

Today, it is reality.

In Cornerstone’s 2025 National Study on Selling Your Business, we surveyed 750 business owners between the ages of 45 and 75, with company revenues ranging from $5 million to $100 million.

We found that nearly half (48%) said they want to exit their companies within the next three years.

Not five years.

Not 10. 

Three.

With the youngest Boomers now in their early 60s, and the oldest well into their 70s, many are realizing they can’t keep putting off these decisions.

Health, energy and family priorities are pressing them toward a transition.

This demographic wave could reshape local economies.

These aren’t just faceless companies changing hands – they are the manufacturers, contractors, distributors and service providers who make up the backbone of our communities.

They employ between a dozen and several hundred people.

They advertise in area media, sponsor youth sports teams and donate to local charities.

When ownership transitions stall or when businesses are forced to close because no succession plan is in place, the effects can ripple far beyond the owner and their family.

Jobs are lost, customers disrupted and legacies crumble.

The risk of waiting too long

Despite their stated intentions, most business owners remain woefully underprepared.

The same study found that fewer than 40% of owners have ever had a fair market analysis or any formal valuation of their company.

Instead, many rely on guesswork, rules of thumb or “back-of-the-envelope” estimates.

For some, that means they might inadvertently end up selling their business for millions (even tens of millions) less than it’s worth.

For others, it means they get to the finish line only to find out the business isn’t worth what they expected and won’t fund their retirement goals.  

These numbers tie with findings in the IBBA/M&A Source Market Pulse Report.

According to that quarterly study, the majority of small business owners do no advance planning before selling their business.

Even among businesses valued $5 million and above, most business owners (63%) spend less than a year in preparation.

The problem is that without preparation, owners may lose the opportunity to increase value, optimize tax planning or generate leverage.

They risk going to market with avoidable pitfalls that scare buyers away.

Worse, when an owner is suddenly forced to sell due to health, burnout or family pressures, it often results in a distressed transaction that shortchanges not only the seller but their family and employees as well.

Planning ahead pays off

The good news is that with planning, owners can take control of the process.

That starts with knowing what the business is really worth.

A professional, fair market analysis provides a clearer valuation than rules of thumb or guesswork.

With that number in hand, owners can work with their financial planners and tax advisors to understand the tax impact of a sale and whether the proceeds will support their lifestyle goals.

The next step is making the company more attractive to buyers.

Strengthening the management team, cleaning up financials and reducing dependence on one large customer all help to boost value and make deals easier to close.

Finally, when the business is ready, a structured sale process can unfold in as little as six to eight months.

That process isn’t about finding just any buyer – it’s about generating multiple offers.

We like to call it the Power of Multiple Offers – or POMO™.

It creates competition, which creates urgency, raises value and allows sellers to choose the buyer who best aligns with their goals, whether that’s protecting employees, safeguarding culture or maximizing cash at close.

Preparation is really about flexibility.

Owners who plan ahead can sell when the market is hot or hold off if conditions change.

They can exit sooner if the numbers support it or keep building if they want to push for a higher valuation.

At the end of the day, that flexibility will be what separates those who ride the “Silver Tsunami” from those who get swept under it.