Recapping the Silver Tsunami

     Andrew, welcome back to the studio. Uh,  

     today I just wanted to recap this entire  

     series on the silver tsunami that we did  

     for people who haven't watched all of  

     these videos and heard all of your  

     excitement about this new um well, it's  

     really an opportunity in in society  

     right now in US in American society.  

     Yeah, it's an opportunity on on both  

     sides of the spectrum. U, but yeah,  

     we've talked about a lot. So, we've  

     talked about the buyer, the seller, the  

     the team, what the silver tsunami is.  

     So, yeah, let's hit some high points.  

     So, let's start at the beginning. What  

     is the silver tsunami? The silver  

     tsunami refers to um this giant private  

     business equity transition that's  

     happening in the US economy right now.  

     Again, 10,000 people a day are turning  

     65. 51% of all privately held business  

     equity is owned by baby boomers and they  

     need to retire because you can't work  

     forever. It actually turns out. So  

     [laughter] yeah, so you got to retire  

     and you got to have an exit strategy and  

     like we've talked about, you can't just  

     go hand a note in to your manager and  

     say, you know, I'm getting ready to  

     retire. You know, you you're in a  

     business. You have to devest.  

     Um and there's many different ways to do  

     that. So yeah, that's the silver tsunami  

The Opportunity for Buyers

     as an overview.  

     Got it. And the silver tsunami is this  

     opportunity for older business owners to  

     cash out of their businesses and use  

     that use that equity which has been  

     locked up for years to create a life for  

     themselves or to create a retirement for  

     themselves and a lifestyle. Uh but it  

     also is a unique position where there  

     are highly functioning small businesses  

     that younger generations can buy and not  

     have to bootstrap it from zero.  

     Yeah. Exactly. And so you know the we  

     talked about the buyer a lot. So these  

     are millennials pursuing  

     entrepreneurship through acquisition. So  

     people who are maybe in management  

     already already in the building or  

     people who are the next generation in  

     the family line like you said they don't  

     have to start from scratch. they can  

     take this business, they can maybe bring  

     some of the tech or bring some  

     innovative scaling methods to the  

     company and and kind of take it to the  

     next level without starting from square  

     one.  

     Yeah. And without getting stuck in a  

     stereotype, but there are a lot of older  

     companies that have not adopted all of  

     the technology that is available and so  

     you may be buying at a higher multiple.  

     You may be paying a lot of money for it.  

     However, you can scale it and and and  

     create make create more productivity.  

     Yeah. And I think it's a great story of  

     the tale of two generations, right? It's  

     like so you know the baby boomers have  

     this like great ability to like generate  

     cash flow gen like low le low amounts of  

     leverage like the  

     debt to equity the cost structuring like  

     all these things are are really optimal  

     in you know baby boomer businesses. And  

     then you have this next generation  

     that's getting ready to take over that  

     are technologically innovative that are  

     capital like they know a lot about  

     capital they know about different ways  

     to use capital. So it really is kind of  

     this unique inflection point in the US  

     economy where you've got all of this  

     business equity that needs to be  

     transferred into retirement assets so  

     that people can start that next phase of  

     their life life after exit. And then you  

     have a group who is like I need a  

     retirement plan or a business asset plan  

     myself. Yeah. And so I can now funnel my  

AI, Small Business, and Ownership

     resources into pursuing that as a  

     career.  

     Got it. So if it's the tale of two  

     generations, which is the worst of  

     generations, which is the best of  

     which is the worst and the best. Oh my  

     gosh.  

     Best of times.  

     What I like about this transitioning  

     happening now is AI is uh looming. Yeah.  

     Right. And there's this fear that I  

     can't just go work out work for another  

     company because I will get fired or I'll  

     lose my job or even fact is they're not  

     hiring as much as as we would like them  

     to be. One job one set of job numbers  

     isn't isn't a trend. And so this is an  

     opportunity to kind of pick up types of  

     brickandmortar companies that will  

     continue to do business.  

     Yeah. I mean I I was just having this  

     discussion um with a friend of mine  

     earlier today and the the thought is  

     like maybe people aren't pursuing these  

     kind of like long 40-year tracks in  

     corporate America anymore and they are  

     pursuing more of a like small business  

     strategy. I mean, we all know incredibly  

     successful people who run small  

     businesses, right? More successful, I  

     would say, than you know, many people in  

     in corporate America or at least equally  

     as successful. And so, this has kind of  

     emerged as like a new market opportunity  

     for people who, you know, maybe once  

     maybe a Harvard MBA once upon a time had  

     no destination other than, you know, a  

     giant corporation or Wall Street. And  

     now you see this kind of like acumen get  

     brought down to a different level of the  

     economy and it and it's really cool.  

     I'm from a small business family, a  

     family of small business owners. You are  

     this is an opportunity and hopefully one  

     that is taken advantage of where small  

     business can come more to the forefront  

     in the US economy um and not just be  

     bought up by aggregators. Yeah. And I  

     think that the returns that we're seeing  

     um in the early stages of the silver  

     tsunami kind of like speak for  

     themselves. And I'm talking returns not  

     in the way that we would think of them  

     as financial advisors, you know, the S&P  

     returns. I'm talking about the margin  

     expansion that we're seeing. The returns  

     for the business owner who take the  

     equity stakes in these things like the  

Why Timing Matters for Sellers

     returns are are very competitive.  

     Yeah. And I um as you know, I I don't  

     like to create fear. However,  

     for many of these older business owners,  

     the time to sell your business is now.  

     Yes.  

     Because there is a window and that  

     window and it's like, are you going to  

     get it on the boom? Because if not,  

     you're probably not going to sell it on  

     the bust and are you willing to sell it  

     all the way through the b hold on to it  

     all the way to the next boom cycle. And  

     not only are you willing to, but is your  

     health able to? And if the answer is no,  

     then you need to link up with someone  

     like us or someone out there who has an  

     aggregate team of valuation experts,  

     people uh accountants, CPAs, estate  

     attorneys, an entire team to get around  

     you to figure out what is the best way  

     for me to exit, the most orderly way for  

     me to exit and to walk away with is an  

Building the Right Exit Team

     optimal amount of cash in my pocket.  

     Yeah, exactly. I mean, something we  

     talked about in our previous videos was  

     you need the right team.  

     Yes. And the one of the tail risks is  

     that you're going to wait too long.  

     You're going to get in a hurry. I mean,  

     you're right. The business market right  

     now is whatever the real estate market  

     was like two or three years ago. I mean,  

     it is time to sell. And so, assembling  

     the right team 6, 12 months in advance,  

     like that's going to be really critical.  

     And bringing your normal CPA, your tax  

     CPA may not be the best person for, you  

     know, your your business transaction  

     accounting.  

     No, they belong on the table, right? but  

     just not as like an entire forensic  

     accounting team that says, "How do we  

     get these books ready in 18 or 20 months  

     so that they're that you're going to get  

     a better multiple for your company? Are  

     they clean? Are you not going to get  

     clawbacks from some professional buyer  

     or from somebody saying, "Hey, you  

     misled us?" Like that type of clarity  

     will make the the the exit so much  

     cleaner, the break nicer. Uh and then  

     all you have to do is figure out what to  

     do with the rest of your life.  

     Yeah, exactly. It's that simple. So you  

     know this thing that's been a part of  

     you for you know whatever 40 years you  

Life After the Exit

     know all you have to do is say goodbye  

     to it and figure out what's next  

     which is really exciting because at  

     conscious wealth we've started this peer  

     group of people who have exited and uh  

     figuring out what is next but  

     particularly with this peer group  

     they're individuals who are wondering  

     not only like what is next because they  

     they don't necessarily need more money  

     or they don't see getting more money as  

     a path to happiness they see they want  

     to figure out well how do I have a  

     positive impact in society? How do I  

     continue to be relevant uh and help  

     others? And is it through business? Is  

     it through nonprofit? Um is it through  

     governmental work? Or is it some  

     combination of all of that? And that's  

     I'm excited about this peer group we're  

     starting up.  

     I am too. And I I think you know too in  

     our experience with like entrepreneurs  

     and we know entrepreneurs who are 35 and  

     entrepreneurs who are 65 and everyone in  

     between and different points in your  

     life are going to lead you to different  

     things. many people who are small  

     business owners or you know we're saying  

     small but like some of the businesses  

     get 40 $50 million in size not everyone  

     wants to just go drink margaritas on the  

     beach I mean that sounds great for like  

     a week but like you've got a whole new  

     phase of your life so how do you make  

     that transition from operator CEO to  

     investor advisor like that next step in  

     your life um and having someone to  

     bounce ideas off of who's already been  

     there or who is there right now  

     who's going through with you  

     yeah who's going with you. I mean,  

     no bad.  

     I love it. Okay. Well, thanks for coming  

     in. I look forward to our next series.  

     Uh, and everyone out there who's  

     listening, look into our peer groups.  

     Uh, talk to us about getting the right  

     team around an exit. And hope to see you  

     soon. Yep. Thanks for having me,  

     Brandon. Yeah.

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