Opinions expressed by Entrepreneur contributors are their very own.
As child boomers retire, they don’t seem to be solely exiting their employment but in addition their corporations. This demographic development, often known as the “Silver Tsunami,” is creating unprecedented alternatives for traders, enterprise house owners and entrepreneurs.
In keeping with information from the U.S. Census Bureau, 52.3% of U.S. employer-businesses are owned by people who find themselves 55 or older, and lots of of them are making ready to exit. These should not new ventures; they’re strong, revenue-producing companies with long-term clients and seasoned employees. As such, they’re particularly interesting to the following group of homeowners. However within the present market, one main differentiator separates fast-selling companies from caught ones: expertise adoption.
Prime-performing companies that boomers are promoting
Boomers have constructed a broad vary of small and mid-sized corporations. Essentially the most prevalent industries on the lists are:
Service corporations: Monetary planners, insurance coverage brokers, advertising and marketing consultants and medical facilities
Retail and on-line: Typical retail shops and on-line shops with strong gross sales histories
Tourism and hospitality: Small resorts, journey businesses and activity-based companies
Manufacturing: Small producers, particularly in specialty or native markets
Actual property and development: Normal contractors, dwelling restore providers and specialty development companies
Meals and beverage: Neighborhood eating places to multi-unit quick-service eating places
Upkeep providers: Janitorial, HVAC and property upkeep corporations
Whereas all of those sectors are promising, there may be one getting old trade that outshines the remaining in innovation and funding: used automotive dealerships.
Automotive retail and restore
Impartial auto dealerships and auto restore are one of the dynamic niches within the business-for-sale universe. The enterprise, nevertheless, is dramatically altering, and success relies upon a elementary shift: embracing expertise. The used automotive promoting enterprise is flourishing whatever the financial booms and busts. In actual fact, IBISWorld reveals that U.S. used automobile gross sales are actually over $150 billion in 2024 as a result of new vehicles are so costly and customers are altering their shopping for habits.
These dealerships that obtain probably the most publicity have one thing greater than a inventory of autos; they’ve a contemporary expertise platform.
From oil stains to cloud stacks
The previous picture of loads of previous vehicles, paper logbooks, chilly calls, and paper stock has been changed by all however the main operations with cloud-first, AI-based programs. Main sellers now use digital and AI-powered transformation.
New auto sellers and restore facilities, typically built-in (however not on a regular basis), are extra digitally savvy, reworking the previous basic auto dealerships with newest AI and digital shifts and developments, AI-based chatbots, good follow-ups and cloud-based software program to simpler handle buyer information, stock, financing, transaction and post-sale follow-ups.
Briefly, digital transformation is not an choice; it’s an crucial for entry into the market.
Market realities and what to look at for
Many of the accessible companies are small and medium-sized. They’re worthwhile however do not need a succession plan. This presents an excellent platform for entrepreneurs and traders to return in and promote operations. Differentiation is a serious facet based mostly on expertise. In enterprise sectors like auto resale, up to date programs can play a serious function in enterprise worth and patrons’ curiosity.
Established buyer bases and operational historical past present a runway for achievement, however tech-savvy patrons ought to test to see what the present enterprise’s instruments and programs are like.
Mentorship from retiring house owners is frequent, particularly amongst boomers who need to guarantee their legacy endures. This is usually a beneficial asset.
Associated: Child Boomer Companies Are Up for Grabs — Here is How Entrepreneurs Can Profit In 2025
A generational alternative, when you’re prepared
Whether or not you are a go-getting entrepreneur trying to buy a profitable mannequin or an investor in search of to develop an heirloom enterprise, this technology shift is a novel alternative. However in at the moment’s market, proudly owning a heritage alone will not be sufficient. Patrons should analyze not simply the model or prime line, however the underlying expertise and digital transformation as effectively.
Social media and AI/LLM instruments are difficult the way in which customers seek for services or products, store, transact and talk with companies, and this could possibly be a wonderful alternative for newer generations of entrepreneurs to accumulate older companies and rework them into agile, digital-first, customer-centric, enterprises with personalised experiences to align with customers expectations at the moment and drive extra enterprise and loyalty.
As child boomers retire, they don’t seem to be solely exiting their employment but in addition their corporations. This demographic development, often known as the “Silver Tsunami,” is creating unprecedented alternatives for traders, enterprise house owners and entrepreneurs.
In keeping with information from the U.S. Census Bureau, 52.3% of U.S. employer-businesses are owned by people who find themselves 55 or older, and lots of of them are making ready to exit. These should not new ventures; they’re strong, revenue-producing companies with long-term clients and seasoned employees. As such, they’re particularly interesting to the following group of homeowners. However within the present market, one main differentiator separates fast-selling companies from caught ones: expertise adoption.
The remainder of this text is locked.
Be part of Entrepreneur+ at the moment for entry.
