As both a business broker and the proud owner of two HOTWORX franchises, I’ve gained a unique perspective on what might be the greatest wealth transfer opportunity of our lifetime: the “Silver Tsunami.”
What exactly is this tsunami? It’s the massive wave of Baby Boomer business owners—estimated at over 2.3 million—who are reaching retirement age and looking to exit their businesses in the coming decade. This unprecedented transition represents trillions in business value changing hands.
Where do franchises fit into this picture? Let me share some insights that might change how you view both buying and selling opportunities in today’s market.
The Franchise Advantage in Uncertain Times
When I decided to invest in HOTWORX franchises, I wasn’t just buying a business—I was buying a proven system with built-in support. This distinction becomes crucial when we consider the current business landscape.
For sellers riding the Silver Tsunami, positioning your business with systems and processes that resemble a franchise model can dramatically increase your valuation. Buyers are willing to pay premium prices for operations that don’t rely solely on the owner’s expertise or presence.
For buyers, franchises offer a middle ground between starting from scratch and purchasing an existing independent business. You get the excitement of building something while minimizing the “unknown” factors that keep new business owners up at night.
Three Paths Forward in Today’s Market
Whether you’re looking to exit your business or enter the market, consider these strategic options:
1. Transition an Existing Business to a Semi-Franchise Model
Before selling, implement standardized operations, documented procedures, and management systems that don’t require your daily presence. This “franchisification” can increase your sale price by 25-40%.
2. Consider Franchise Ownership as Your Next Chapter
For sellers looking for their next venture or buyers seeking lower-risk opportunities, franchise ownership offers a balance of independence and support. The learning curve is significantly reduced, and growth potential remains high.
3. Become a Strategic Buyer of Silver Tsunami Businesses
With proper guidance, buyers can acquire solid businesses from retiring owners, implement franchise-like systems, and either grow them substantially or prepare them for an even more profitable future sale.
Why Timing Matters More Than Ever
The Silver Tsunami isn’t just a theoretical concept—it’s already beginning to swell. Business owners who plan their exit strategies now will capture maximum value, while
those who wait may find themselves competing with a flood of similar businesses hitting the market simultaneously.
For buyers, this timing creates both opportunity and challenge. The quality and selection of available businesses will increase, but so will competition from other buyers, including private equity firms and strategic acquirers.
The Experience Factor: The Power of a Proven Team
When navigating the complex process of buying or selling a business, you deserve more than just a single advisor—you need an entire team of experts backing you.
In a recent conversation I had with financial leader John Hope Bryant, he emphasized: “This represents perhaps the largest transfer of wealth in American history. Those who understand this demographic shift and position themselves strategically will find unprecedented opportunities for growth and economic advancement.”
While I bring my personal franchise ownership experience to the table, what truly sets us apart is The CBI Team’s proven process that has evolved over 25 years through hundreds of successful deals. We’ve tailored the ideal method of selling businesses of all sizes and types with a customized marketing approach.
When you work with me, you’re not just getting an individual broker—you’re gaining access to an entire team working on your behalf, with systems refined through decades of successful transactions.
When you’re making decisions that will impact your financial future for decades to come, having this level of systematic support isn’t just helpful—it’s essential.
The Silver Tsunami represents both challenge and opportunity. With strategic thinking and experienced guidance, you can position yourself to ride this wave rather than being overwhelmed by it.
Whether you’re considering selling your business in the near future or looking to enter the market as a buyer, I’d welcome the opportunity to share more specific insights based on your unique situation. _______________
Kenneth Burnett is a business broker with CBI Team in Memphis and owner of two HOTWORX franchises. Reach out at kenneth.burnett@cbiteam.com or 480-797-3970 to discuss your business buying or selling goals.
