Thousands of small and mid-sized businesses owned by baby boomers are ready for succession, but many lack a plan or person to effectively pass the baton. Buying an existing, cash-flowing company with the seller providing financing lets people step directly into ownership, often with less up-front capital than traditional acquisitions require.
Baby boomer business exits are making entrepreneurship through acquisition (ETA) more accessible for everyday Americans who would prefer to buy a business and run it themselves rather than be an employee.
ETA As a Path to Generational Wealth
ETA focuses on preserving the culture and identity of an established, healthy business into the future. The impact of seller financing ETA deals is massive when you consider the bigger picture beyond accruing wealth. It’s providing people financial freedom to live their lives contributing to their communities, supporting local economies, and helping prevent job losses.
The ripple effect of ETA deals can give everyone involved more confidence and flexibility in their futures.
With what’s been dubbed the “Silver Tsunami” of an estimated $10 trillion in business assets being transferred over the next two decades, there may be more opportunities to seller finance a baby boomer business than what’s easily visible on business marketplaces online or even with business brokers. Business acquisition through seller financing can give sellers faster exits and access to the right fit for succession regardless of access to bank financing.
How Sellers and Buyers Prepare Before a Seller-Financed Exit
Dana Chery left her corporate tech marketing career to become co-owner of a manufacturing company acquired from retiring baby boomer founders. She’s lived the experience of buying, running, and growing Monsam Portable Sinks, which she and her husband Ray acquired in 2024. In a recent interview with McKinsey, Dana underscored how demanding the search and acquisition process can be.
“Know your criteria and what’s going to be required of you throughout the search. Know that it can be a challenging process. It requires focus, dedication, and diligence. There’s no neat path to finding a business; the outcomes and timelines are different for everyone.” She stresses the importance of joining a community or finding a partner because “the process can be a lonely one,” and peers make it more sustainable.
Dana’s husband Ray Chery advised sellers to “take stock of your business” and prepare it so “it is actually sellable when the time comes.” Here are the questions he implored baby boomers looking to sell to ask themselves now:
- Do you have systems in place?
- Are there standard operating procedures that you can hand off to the next owner?
- What are your thoughts on value?
- What does success look like for you?
- How organized is your supply chain?
- What would your customers and vendors say about you?
Why Tracking Seller-Financed Payments Professionally Matters
Once a seller‑financed ETA deal closes, the relationship between baby boomer seller and new owner continues through the note. Monthly payments effectively become retirement income for the seller and a major obligation for the buyer. To ensure both parties can resolve disputes and ensure the seller note can be refinanced or sold later, the payments need to be professionally tracked versus spread out across email threads, ad‑hoc spreadsheets, or checked‑off amortization printouts.
Using a professional‑grade ledger and automated payment system for seller-financed ETA deals can help both sides:
- Keep a real‑time record of principal, interest, and fees
- Automate ACH/card payments and reminders to reduce missed payments
- Generate statements and tax forms needed for reporting and, if desired, future note sales
Treating seller‑financed ETA notes like institutional loans protects the seller’s retirement income, supports the buyer’s credibility with lenders and investors, and makes these baby boomer business exits a true path to entrepreneurship and generational wealth.
Allison Murray is a recognized payments and financial technology expert with more than 10 years of leadership experience in payment technology and financial services infrastructure. With a proven track record of developing frameworks that drive value creation for fintech companies, Allison’s technical knowledge and industry foresight have earned peer recognition across the payments industry. She has spoken at leading fintech conferences including Money20/20 and Finovate, received the Los Angeles Business Journal’s Women’s Leadership Award in 2020, and actively contributes to the fintech community through NYC Fintech Women and the Women’s Network in Electronic Transactions (WNET).
Disclaimer: This article is for general educational purposes only and does not constitute legal, tax, or financial advice. Entrepreneurship through acquisition and seller‑financed business exits can trigger complex federal, state, and tax requirements that vary by jurisdiction and deal structure. Before buying or selling a business using seller financing, consult qualified legal and tax professionals.
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