Younger Generations Taking Over Baby Boomer Businesses: A Growing Trend in 2025

In recent years, there has been a noticeable shift in the business world: younger generations, particularly millennials, are increasingly buying businesses that were previously owned by Baby Boomers. This trend is expected to grow even more in 2025, as many Boomer business owners prepare to retire. Instead of starting businesses from the ground up, millennials see the value in acquiring established businesses, creating unique opportunities in Australia and worldwide.

Baby Boomers Leaving the Business World

As Baby Boomers, born between 1946 and 1964, approach retirement, many are stepping back from their businesses. In Australia alone, more than half of businesses are owned by people aged 50 or older, with many planning to exit in the coming years. The Australian Small Business and Family Enterprise Ombudsman estimates that about 70% of small businesses will change hands over the next 10 to 15 years, either through sale or succession.

This wave of retirements provides an opportunity for millennials and younger generations who prefer to take over established businesses instead of starting new ones. Globally, it is estimated that $10 trillion worth of businesses will change hands over the next decade as Baby Boomers retire. Younger entrepreneurs are eager to take on these businesses and carry them forward.

Why Millennials Are Buying Instead of Starting From Scratch

Starting a new business can be overwhelming for many millennials due to financial risks, administrative challenges, and steep learning curves. Buying an existing business offers several benefits, including a built-in customer base, brand recognition, and established systems.

Research from Xero shows that millennials are drawn to buying businesses because it can lead to quicker profitability. While startups often take years to generate income, existing businesses can offer immediate cash flow and scalability. Purchasing an established business also reduces the risks compared to building one from scratch. Millennials are particularly interested in industries like technology, healthcare, e-commerce, and green businesses, where they see significant growth potential.



Easier Access to Financing and Opportunities

Access to financing has made it easier for millennials to purchase businesses. In Australia, lenders are increasingly open to providing loans to younger buyers, especially when the business has a strong financial history. The government has also introduced grants and tax incentives to support first-time business buyers.

Younger buyers are especially drawn to businesses that align with their values, such as those focused on sustainability, technology, and social impact. For example, eco-friendly products, tech-driven solutions, and social enterprises are highly attractive to millennial buyers. These types of businesses are also in growing demand worldwide as younger generations prioritise making a positive difference.

Challenges Millennials May Face

While buying an existing business has its benefits, it comes with challenges. Younger buyers need to ensure they have the skills to manage and grow the business. This includes understanding financial management, handling employees, and maintaining strong customer relationships. Additionally, some businesses may come with liabilities or outdated systems that need modernisation to stay competitive.

Despite these challenges, the trend of millennials buying businesses from Baby Boomers is expected to grow in 2025. This movement reflects shifting generational priorities, better financial options, and stronger support systems. For younger entrepreneurs, this is more than just a chance to acquire a business—it’s an opportunity to honour and modernise an existing legacy.

Conclusion

The increasing trend of millennials and younger generations buying businesses from Baby Boomers offers a unique way to bridge the generational gap in the business world. With more Boomers retiring and millennials seeking established opportunities with lower risks, this shift is shaping the future of business in Australia and beyond. It provides retiring owners a way to step back while enabling new owners to bring fresh ideas and innovations to the table.

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