The New Face of Small Business Ownership: Who's Buying Businesses in 2025?
A generational shift is taking place on Main Street America. As the Silver Tsunami of Baby Boomer business owners approaches retirement, a new wave of entrepreneurs is stepping up to acquire these established businesses. This demographic shift is creating opportunities for small business ownership across the country.
Who's Buying Businesses in 2025?
According to recent data from the BizBuySell Insight Report, over 56% of current business buyers have never owned a business before. The most common profile? Corporate refugees - individuals exiting corporate America in search of independence - who make up nearly 42% of today's business buyers.
Other significant groups include serial entrepreneurs (14.7%), the recently unemployed (12.9%), and the recently retired (9.1%). What's particularly noteworthy is the emergence of recent MBA and business school graduates in this space, representing 5.7% of buyers.
While this percentage might seem small, business brokers are noticing their growing presence, with 45.6% of brokers reporting either a slight or significant increase in MBA graduates looking to acquire established businesses.
Buy Then Build: A New Path to Entrepreneurship
This trend is fueled by the growing popularity of entrepreneurship through acquisition (ETA) programs at business schools across the country. These programs teach students to raise capital from investors, search for a viable business to purchase, then buy and operate it—a model commonly known as a search fund or buy then build.
For younger entrepreneurs, this strategy of buying an existing business offers a compelling alternative to the traditional startup path. Buying an established business allows searchers the ability to sidestep some of the pain points associated with starting a business from scratch. One of the key benefits of purchasing an established business is the ability to capitalize on an existing customer base, positive cash flow, and well-defined operational processes, leading to a faster start.
What Businesses Are Searchers Looking For?
Today's business buyers are primarily focused on service-based businesses, with nearly 62% looking in this sector. Retail (27.9%) and online businesses (26%) follow as the next most sought-after categories.
When evaluating potential acquisitions, financial performance (41.8%) and growth potential (24.4%) top the list of important factors, followed by location (18.9%). The vast majority of buyers (75.9%) are seeking stable, recession-resistant businesses, while 47.2% are interested in already-thriving enterprises.
The Silver Tsunami Creates Opportunity
As the Baby Boomer generation approaches retirement age, the supply of available businesses is expected to increase dramatically. Business brokers are optimistic about this market dynamic, with over 77% believing there will be either slightly more or significantly more buyers looking for businesses in 2025 compared to 2024.
This demographic shift presents distinct opportunities for entrepreneurship. With more small businesses entering the market, there will be many new possibilities for ownership. When entrepreneurs purchase these businesses, they reduce startup time by acquiring established brands and inherit built-in customer bases, making it potentially easier to secure financing since lenders can review the existing business's financial history.
Private Equity Enters Main Street
Another factor reshaping the landscape is the increasing presence of private equity in the small business market. Over 53% of business brokers report either a slight or significant increase in private equity activity compared to last year.
This activity primarily takes the form of direct acquisitions of individual businesses (64.9%) and industry consolidation through buying multiple businesses in the same industry (61.3%). This increased institutional interest creates both competition and potential exit opportunities for business owners.
Knowledge Transfer Between Generations
As Baby Boomers transition their businesses to new owners, they have the opportunity to share the knowledge, skills, and connections they've built over years of operation. This transfer of expertise and goodwill that Boomers have created over a lifetime of building businesses that contribute to the local economy becomes invaluable to new owners.
Many retiring business owners are choosing to stay involved through training and mentorship, consulting agreements, or phased transitions, allowing the next generation of entrepreneurs to benefit from their years of experience while bringing fresh perspectives to established businesses.
The Path Forward
The entrepreneurial landscape is evolving—and for many, the path to business ownership now begins not with a startup, but with a search. As we move further into 2025, the convergence of retiring Baby Boomer business owners and eager new entrepreneurs promises to reshape Main Street, bringing fresh energy and ideas while preserving the legacy of established businesses across the country.
For the next generation of business owners, the opportunity to tap into the solid foundation built by Baby Boomers while bringing new innovation to these businesses represents the best of both worlds—honoring the past while building toward the future.