How mergers and acquisitions are the future of entrepreneurship

The “silver tsunami” isn't a disaster. It’s a wave to surf

The "silver tsunami" is a metaphor that dates back to the 1980s but has recently resurfaced. It refers to the demographic shifts currently happening within the United States, and news articles often use this phrase when discussing aging baby boomers. 

The headlines and titles using “silver tsunami” often include words like “bracing,” “crisis” and “protect” or “prepare.” The phrase itself conjures images of destruction and violent natural disasters. 

But while everyone is discussing the challenges of aging demographics, business owners and entrepreneurs should be seeing an opportunity — a wave to surf, so to speak — instead of a natural disaster.

More than 51 percent of U.S. business owners are 55 or older, according to the U.S. Census Bureau, but only about 54 percent of those business owners say they have a formal succession plan. Therein lies the opportunity.

The U.S. Small Business Administration reported that there are more than 371,569 small businesses in Utah, and if 51 percent of their owners are entering retirement age and 54 percent don’t have a succession plan, that adds up to almost 95,000 businesses that could be available to buy or acquire in Utah alone.

Why acquiring a business can be a good idea

For new businesses owners, there are many reasons why you may want to acquire a business instead of starting one:

• An established business model means spending less time figuring out what “works.”
• Reliable revenue streams can create immediate cash flow.
• Because the business is already established, it may be easier to get financing.
• No need to train staff or bring in suppliers or business partners.

For experienced businesses owners, the list is similar, but with a few additional benefits, including:

• The diversification of business assets.
• More cash flow for greater financial flexibility.
• Access to quality and experienced staff.

Many of these benefits only improve when a business has existed for a long time.

In addition, many small businesses are in sectors that are stable or may have growth in the next five years. For example, education, health and construction businesses make up about 16 percent of the total number of small businesses in Utah. Each of these sectors had positive year-over-year employment growth in 2025.

What to watch for when acquiring a small business

As with any business decision, there is much to consider before jumping in the deep end, even for established businesses with existing revenue streams and strong business models.

A comprehensive review of the business you intend to acquire is probably the most important step. Carefully review financial statements, contracts and assets, and become well-acquainted with the company culture. The most likely reason an acquired business may fail is due to undisclosed issues and poor integration into the existing enterprise.

Pay special attention if you’re acquiring a business from a long-time owner. Most Utah small businesses are more than 5 years old, according to a government survey. With a more tenured owner, you’ll want to account for loyalty to the existing owner that could be challenging to overcome.

What do you need to acquire a business

Financing is often top of mind for current and future business owners. However, acquiring a business may require more than just financing, particularly if you’ve never owned a business before. Here are a few things to consider before financing a business acquisition:

• Is the business hands-on or can you manage from a distance?
• Does it require intensive industry research to successfully operate?
• Is it a business with employees or a business run by one person?

Current business owners should also consider whether an acquisition matches their overall business goals and how the new business will fit into the existing business model.

If needed, consult with an attorney to help draw up contracts or review existing agreements.

Financing is also very important, particularly for new entrepreneurs. A good credit history, adequate collateral, and experience in managing teams is the bare minimum for getting a loan. Lenders may require detailed financial statements and business plans for both the borrower and the business before approval.

An SBA loan could be a great option for new business owners. It is often easier to obtain, thanks to a government guarantee, so they are viewed as less risky for lenders. We recommend working with an SBA-preferred lender because they are generally able to approve loans more quickly, thanks to a strong relationship with the SBA. SBA loans are subject to credit approval, so being creditworthy makes it more likely you will be approved.

The final consideration

As any business owner knows, running a business is difficult and adding more to your plate through an acquisition can be even more difficult. It’s important to come into any transaction with reality in mind. Ask the important questions:

• What is my capacity?
• Am I prepared to put in the work?
• What are my strengths and limitations?

Despite the difficulties of acquiring a business, the potential benefits can be worth it. According to the SBA, small businesses account for $11.4 billion of Utah exports each year — and that number doesn’t include businesses that don’t export. They also make up almost half of the total employees in Utah.

So instead of running to high ground, buy a surfboard and ride the “silver tsunami” to success.

Grant Dahl is senior vice president and small-business banking manager at Zions Bank, with more than 15 years of experience in SBA underwriting and team leadership.