How Is the "Great Wealth Transfer" Affecting Business Brokers?

The "Great Wealth Transfer" is reshaping the U.S. economy as Baby Boomers and the Silent Generation pass down $124 trillion in assets by 2048, with $84 trillion transferred by 2045. This shift impacts small business ownership, as 41% of U.S. small businesses - valued at nearly $8 trillion - are owned by Baby Boomers. With 10,000 Boomers retiring daily, over 70% of these businesses are expected to change hands.

Here’s why this matters for business brokers:

• Increased Deal Volume: More businesses are entering the market, creating opportunities but also intense competition among sellers.
• Succession Planning Issues: Many business owners lack exit strategies, leading to valuation challenges and failed sales.
• Changing Buyer Demographics: Younger buyers prioritize updated technology, creative financing, and operational scalability.
• Evolving Broker Roles: Brokers now handle more complex transactions, requiring expertise in technology, financing, and intergenerational communication.

To thrive, brokers must:

1. Use tools like AI-powered valuation platforms and CRM systems to manage higher deal flow.
2. Build trust with verified listings and transparent communication.
3. Offer succession planning services to help Baby Boomer sellers prepare businesses for sale.
4. Balance the needs of legacy-focused sellers with the modern preferences of younger buyers.

This wealth transfer is not just about transactions - it’s about navigating generational shifts, leveraging modern tools, and building lasting client relationships.

More Business Sales as Baby Boomers Retire

Growing Number of Businesses for Sale

As Baby Boomers step into retirement, the business-for-sale market is experiencing an extraordinary surge. Back in 2018, around 51% of U.S. business owners were aged 55 or older ^[5]. Fast forward to today, and this demographic shift is flooding the market with businesses looking for new owners.

Experts predict that by 2030, nearly 2.3 million businesses owned by Baby Boomers will either be sold or passed down ^[5]. This phenomenon, often called the "Silver Tsunami", is already reshaping the industry. Since 2015, the number of businesses listed for sale in the U.S. has risen by more than 50% ^[5].

For business brokers, this wave of activity is a double-edged sword. On one hand, more listings mean more opportunities for commissions. On the other, the crowded marketplace has led to fierce competition among sellers, forcing them to make their businesses more attractive to potential buyers. Brokers, in turn, have to find new ways to make their listings stand out.

This shift is transforming how the brokerage industry operates. John Mitchell, a seasoned business broker, highlights these changes:

What began as a more localized, relationship-driven business has evolved into a dynamic, technology-powered industry that is increasingly essential to the transfer of wealth between generations. ^[5]

However, this boom in business sales also reveals a significant problem: many owners are not prepared for the transition, creating challenges for brokers and buyers alike.

Problems Created by Poor Succession Planning

The influx of businesses on the market has exposed a glaring issue - many Baby Boomer owners are poorly prepared for retirement. In fact, fewer than one-third of small business owners have a clear exit plan ^[4]. This lack of preparation complicates the process of selling a business and creates headaches for brokers trying to facilitate smooth transitions.

Only half of businesses report having some form of succession plan ^[6], while a third of business owners admit they have no long-term strategy or are uncertain about their company’s future ^[7]. Even more striking, 22% of business owners plan to simply close their doors rather than sell ^[7].

This lack of planning leads to several challenges. Many businesses entering the market lack strong leadership pipelines because owners have prioritized immediate needs over long-term development. About 70% of leaders have postponed leadership development programs ^[6], leaving businesses without the management depth that buyers expect.

Succession planning gaps also hurt valuations. Buyers carefully assess leadership structures, knowing that the departure of key executives can significantly affect a business’s value and stability. With fewer than 15% of Baby Boomer businesses being passed down to family members ^[3], most are left searching for external buyers who need assurance of operational continuity.

The harsh reality? Over 70% of small businesses listed for sale each year fail to find a buyer ^[4], and poor succession planning is a major factor in this high failure rate. These shortcomings not only drive down valuations but also increase the complexity of due diligence for prospective buyers.

How Buyer Demographics and Expectations Are Changing

The wave of Baby Boomer retirements isn’t just changing the seller landscape - it’s also altering who’s buying and what those buyers want. A younger generation of first-time buyers is entering the market, bringing new priorities, investment approaches, and management styles.

These new buyers often expect businesses to have modern technology in place. Unfortunately, many boomer-owned companies still rely on outdated systems ^[3], creating a disconnect with buyers who prioritize updated technology, strong digital marketing strategies, and streamlined operations.

The generational shift is also reshaping how deals are structured. Younger buyers frequently require creative financing solutions, such as SBA loans or seller financing ^[5]. While this adds complexity to transactions, it also presents opportunities for brokers who can navigate these financial arrangements effectively.

First-time buyers are also raising the bar for due diligence. They’re more likely to request detailed financial records, evaluate digital assets, and scrutinize business processes. While this thorough approach can extend transaction timelines, it often results in more successful deals in the long run.

To adapt, brokers are refining their marketing strategies. The move from local listings to online platforms has given business-for-sale listings nationwide and even global visibility ^[5]. Buyers are increasingly comfortable with digital tools and remote evaluations, making online marketplaces essential for connecting sellers with interested parties.

Despite these shifts, the brokerage industry is well-positioned to handle the growing deal flow. Currently, only 20% of businesses sold are facilitated by brokers ^[5], leaving significant room for growth. With over 1,500 brokerage firms and roughly 8,800 brokers in the U.S. ^[5], the industry has the capacity to thrive - provided it continues to evolve alongside these changing dynamics.

How the Role of Business Brokers Is Changing

Higher Demand for Broker Expertise

The Great Wealth Transfer has created a surge in demand for business brokers as transactions grow more complex. With trillions of dollars in assets changing hands, brokers now play a key role in navigating these transitions.

A significant challenge has emerged: many Baby Boomers retiring from their businesses lack the expertise to handle today’s intricate transaction processes. Meanwhile, younger buyers come to the table with high expectations and a need for specialized guidance. This generational gap is pushing more business owners to seek broker assistance. Interestingly, 80% of clients switch advisors during inheritance transfers ^[9], and 76% of firms only engage with heirs at the point of transfer ^[9]. These statistics highlight a major opportunity for brokers who establish relationships early in the process.

Several factors are driving this increased reliance on brokers. Younger buyers often require detailed financial records and evaluations of digital assets, making due diligence more demanding. Financing solutions, too, have become more complex, often requiring creative problem-solving. As a result, brokers are stepping into broader advisory roles, offering expertise not just in transactions but also in legacy planning - something Baby Boomer sellers value as they transition out of their businesses. These shifts underscore the contrasting needs of seasoned sellers and younger, tech-savvy buyers.

Then and Now: Client Expectations

With brokers taking on more prominent roles, client expectations have evolved sharply across generations. Sellers and buyers approach transactions with distinct priorities. Baby Boomer sellers often focus on preserving their legacy and prefer straightforward, face-to-face communication. On the other hand, younger buyers demand transparency and expect tech-driven solutions, such as digital access to information and streamlined processes.

This generational divide is evident in how clients discover and evaluate opportunities. For instance, 60% of Boomers favor in-person experiences ^[11], while only 28% of Gen Z shares that preference ^[11]. Brokers must now balance traditional relationship-based methods with digital-first strategies to meet these differing needs.

Additional data further highlights these generational contrasts. For example:

• 73% of Boomers rate brand reputation as their top priority ^[11], compared to 68% of Gen X.
• 82% of Gen Z prefer to engage with brands that advocate for social equality ^[11].
• 87% of Gen X cite data protection as a key factor in brand loyalty ^[11].

To succeed, brokers must adapt their communication and service models to address these varied expectations effectively.

Comparison: Old vs. New Brokerage Methods

To meet the changing demands of clients, brokers are transitioning from traditional methods to more modern, technology-driven approaches. This shift reflects broader generational and technological trends. Here’s a look at how brokerage practices are evolving:

This transformation has improved efficiency and accuracy, enabling brokers to manage more deals while maintaining personalized service. Tasks that once relied on spreadsheets and paper files are now streamlined through CRM systems, which track interactions and automate follow-ups.

Technology has also widened brokers’ market reach, moving beyond local networks to provide nationwide exposure for business listings. AI and data analytics are reshaping how businesses are evaluated and priced, offering data-driven insights that go beyond traditional methods.

However, successful brokers understand that technology is a tool, not a replacement for human connection. As David Goodsell, Executive Director of the Natixis Center for Investor Insight, puts it:

Advisors have had to demonstrate their flexibility and ability to navigate historically challenging market dynamics in recent years. Now, they need to flex their strategies even more to appeal to the next generation of investors ^[8].

This evolving landscape calls for brokers to combine traditional relationship-building skills with modern technological expertise, ensuring they can meet the diverse needs of retiring sellers and younger buyers alike.

The Biggest Wealth Transfer In History is Happening Right Now

Strategies and Tools for Business Brokers to Keep Up

The Great Wealth Transfer is pushing brokers to adapt in real-time. To stay competitive, brokers need to blend traditional expertise with modern tools and fresh service offerings. Here’s how they can pivot to meet the moment.

Using Technology to Make Transactions Easier

Technology, especially AI, is reshaping how brokers manage valuations, streamline workflows, and handle client interactions. These tools are crucial for managing the increasing volume of transactions.

• AI-Powered Valuation Tools: These platforms dramatically cut down the time spent on valuations. Instead of manually crunching numbers, brokers can rely on tools that calculate company worth using methods like discounted cash flow and market comparables ^[12].
• Automated Document Creation: AI simplifies the creation of essential documents like Confidential Information Memorandums (CIMs) and buyer presentations. Keith MacKenzie, Founder of Chinook, highlights its impact:

We estimate that we will save up to $60,000 in overhead this year due to the efficiencies DealBuilder brings to our 8 person advisory firm. ^[13]

• Workflow Automation: By automating tasks such as data collection and market analysis, brokers can save 10–20 hours a week. Laura Barr of CBRE Advisory and Transaction Services notes:

It's freeing up more of a broker's time to do the most important part of their job, which is the consultative and advisory piece. ^[16]

• Enhanced Search and Database Tools: AI-driven platforms allow brokers to perform faster searches and access detailed financial data ^[15].

These tools don’t just save time - they also help brokers focus on building stronger client relationships, which brings us to the next critical area.

Building Trust with Verified Listings

Efficiency through technology is powerful, but trust is what keeps clients coming back. With 94% of consumers favoring transparent brands ^[18], brokers must prioritize clear communication and verified listings.

• Transparency in Operations: Being upfront about pricing, processes, and potential challenges fosters trust. This openness can reduce client stress while improving productivity ^[17].
• Verified Listings: Combining automated and manual reviews ensures accuracy and prevents inflated claims or misleading information, protecting a broker's reputation.
• Clear Communication Standards: Brokers should clearly outline their services, pricing, and any potential hurdles to avoid misunderstandings.
• Consistent Messaging: Regular audits and team training help ensure that communication remains clear and aligned across all channels.
• Accountability: Addressing mistakes directly and taking responsibility builds stronger, more trusting relationships with clients.

Helping with Succession Planning

Retirement is a pressing concern for Baby Boomer business owners, many of whom lack a succession plan. With over 58% of small business owners unprepared for this transition ^[19], brokers have a unique opportunity to step in as trusted advisors.

• Early Engagement: Starting conversations about succession well in advance allows business owners to make informed decisions and prepare thoroughly.
• Comprehensive Succession Options: Whether it’s family succession, selling to a third party, or an employee buyout, brokers should guide clients through all available paths.
• Business Preparation Services: Assessing a company’s value, addressing legal or financial concerns, and optimizing operations can boost its marketability. While 75% of Baby Boomer-owned businesses are profitable ^[20], many still need fine-tuning to reach their full potential.
• Knowledge Transfer Facilitation: Structuring mentorship or transition periods ensures a smoother handoff when the owner exits.
• Educational Resources: With 98% of small business owners unaware of their company’s value ^[14], brokers can offer workshops, guides, or consultations to fill this gap and establish themselves as experts.
• Seller Financing Guidance: Many Baby Boomer entrepreneurs are open to seller-financing arrangements, which can make deals more appealing to buyers ^[21].
• Technology Integration: AI tools can help brokers manage multiple clients, track market trends, and generate detailed reports, making the succession process more efficient ^[14].

Handling More Deals and Changing Buyer-Seller Relationships

With advancements in transaction technology and evolving succession strategies, brokers are now navigating two significant challenges: managing a growing number of deals and adapting to shifting client relationships. As wealth transitions at an unprecedented pace, brokers are handling more transactions while also addressing changing expectations. To succeed, they need to balance efficient deal management with building strong, lasting relationships.

Managing More Deals Efficiently

The increasing volume of transactions requires brokers to adopt a structured approach. Consider this: around 10,000 Baby Boomers retire every day ^[23], and they own roughly 40% of small businesses and franchises in the U.S. ^[23]. This surge in activity demands tools and systems that can handle the workload. A reliable CRM system becomes a game-changer, automating repetitive tasks like follow-up reminders, deal tracking, and communication management. This allows brokers to focus on their clients rather than drowning in administrative work.

Beyond CRM platforms, technology like AI-powered listing importers can save time by automatically gathering and organizing business details into deal files. Automated notifications help brokers stay on top of milestones, buyer inquiries, and market changes, ensuring no critical deadlines are missed. For instance, alerts can flag price adjustments or approaching closing dates. Brokers can start with basic CRM features and gradually incorporate advanced tools like automation and segmentation ^[26]. While these systems streamline operations, brokers also need to prioritize relationship-building with their clients.

Building Long-Term Relationships with Clients

The Great Wealth Transfer isn’t just about transactions - it’s a chance to build relationships that span generations. This shift presents both challenges and opportunities. To stay relevant, brokers must stay informed about market trends, regulatory changes, and emerging buyer preferences. Positioning themselves as trusted advisors rather than mere facilitators can make all the difference.

A multi-generational approach is key. For example, when working with Baby Boomer business owners, brokers should involve their adult children in discussions. These next-generation decision-makers could become future clients. Tailoring communication strategies matters too. Some clients may appreciate frequent updates and detailed market insights, while others might prefer occasional but impactful check-ins. The goal is to ensure every client feels understood and valued. Adapting to each generation’s unique communication style is essential for building trust.

Meeting Different Generational Expectations

Different generations have distinct preferences, and brokers must adapt their communication methods accordingly. Baby Boomers often value honesty, integrity, and in-depth market knowledge ^[25]. They tend to prefer traditional methods like phone calls or in-person meetings and appreciate detailed explanations that reflect their priorities - such as preserving their business legacy and ensuring employee well-being.

On the other hand, younger buyers lean toward digital tools and faster communication ^[24]. They’re comfortable with virtual meetings, electronic signatures, and mobile-friendly platforms. Their focus often lies on growth potential, scalability, and modern business practices. To bridge these generational gaps, brokers need dual communication strategies. For instance, they might send detailed market reports via email to Baby Boomer sellers while offering interactive dashboards and real-time updates to younger buyers.

Mediating between generational priorities is also crucial. A Baby Boomer seller’s focus on employee retention could be reframed for a younger buyer as maintaining operational stability - a concept that aligns with their emphasis on metrics and performance. Additionally, some buyers may seek family-oriented business opportunities, while sellers often want to ensure their legacy remains intact.

Understanding the shifting mindset of investors is equally important. Sarah Norman, head of CIO Sustainable Investing Thought Leadership, highlights:

Younger investors aren't just looking to make an impact; they believe that sustainable investing can help identify investment opportunities and mitigate risks.

Similarly, Lauren Sanfilippo, senior investment strategist at the Chief Investment Office, observes:

Even with all their interest in sustainability and alternative investments, these younger investors will eventually come around to a proven formula for building on the wealth they inherit.

Conclusion: Key Takeaways for Business Brokers

The Great Wealth Transfer is more than just a shift in assets - it's a rare opportunity for business brokers to reshape their strategies and thrive. With Baby Boomers holding over 50% of their wealth in small and medium-sized businesses ^[1][27], this transition offers a unique chance for brokers ready to adapt to new dynamics.

Success will come to brokers who balance traditional trust-building approaches with modern tools and perspectives. Baby Boomer sellers value personal relationships, while younger buyers lean toward digital solutions and sustainable investing. For instance, 82% of investors aged 21–43 consider a company's ESG (Environmental, Social, and Governance) record when making decisions, compared to just 35% of those aged 44 and older ^[2]. Understanding and catering to these generational differences is crucial.

Investing in technology is no longer optional - it's a necessity. With 51% of financial advisors eyeing organizations that offer better tech tools ^[22], brokers who adopt CRM systems, automated workflows, and digital communication platforms will gain a clear edge. These tools will help manage the surge in deals as Baby Boomers retire, ensuring brokers stay ahead in a competitive market.

At the same time, maintaining strong client relationships remains essential. Engaging with multiple generations within client families and positioning oneself as a trusted advisor - not just a dealmaker - will ensure long-term success. Brokers who offer value beyond the transaction will be better equipped to navigate generational transitions.

The rise in alternative investments and sustainable business practices also creates new opportunities. With 72% of millennial and Gen Z investors believing that traditional stocks and bonds alone can't deliver above-average returns ^[2], brokers who understand these preferences and can explain how business acquisitions fit into modern portfolios will stand out.

As Taylor Matthews, CEO and co-founder of Farther, aptly puts it:

The Great Wealth Transfer isn't just shifting assets – it's a defining moment for wealth management. Firms that embrace technology-driven wealth – leveraging automation and digital advancements to enhance human expertise – will lead the industry forward. ^[10]

For brokers, this transition is a chance to redefine their role. By blending traditional relationship-building with cutting-edge technology and multi-generational strategies, they can position themselves as leaders in this historic wealth shift.