What is the ‘Silver Tsunami’?
What Is the Silver Tsunami?
Over the next decade, the U.S. will experience one of the largest generational shifts in business ownership in history. This phenomenon is often called the Silver Tsunami—a wave of baby boomer entrepreneurs reaching retirement age, many of whom own small to mid-sized businesses that form the backbone of local economies.
A Demographic Wave That’s Reshaping Business
Baby boomers (those born between 1946 and 1964) own nearly 50% of all privately held businesses in the U.S. That's millions of companies representing trillions of dollars in value, and employing tens of millions of workers. As these owners retire, they face a major question: What happens to the business when I step away?
In some cases, the answer is clear—pass it to a family member, sell it to a buyer, or close shop entirely. But many business owners haven’t planned for succession at all. According to surveys, over half of small business owners don't have a formal exit plan.
Why It Matters
When a business shuts down or is sold to a buyer outside the community, it can have ripple effects: job loss, weakened local economies, and a loss of institutional knowledge. The stakes are especially high in smaller towns and cities, where a single business might be a major employer or a cultural cornerstone.
This is where new models of ownership—like Employee Stock Ownership Plans (ESOPs)—can play a transformative role. By selling a business to its employees, owners can ensure continuity, reward the people who helped build the company, and keep wealth rooted in the community.
A Moment of Both Risk and Opportunity
The Silver Tsunami is both a challenge and an opportunity. Without thoughtful transitions, we risk seeing a massive transfer of wealth and value out of the hands of communities. But with creative solutions like employee ownership, this wave could instead become a force for building more resilient, inclusive local economies.
At Silver Surf, we’re exploring what this transition looks like—through interviews with business owners, employees, and experts who are navigating the Silver Tsunami in real time.