As Baby Boomers enter retirement age and Gen X owners follow close behind, a wave of lower middle market companies is coming to market. The Kiplinger Letter from July 17, 2025, reports that “more small businesses are going up for sale” as these owners exit. For many business owners, this trend creates a rare opportunity – and an urgent need – to plan an orderly exit. In the current economic climate (with inflation peaking and interest rates likely on hold), buyers have capital and are looking to invest. However, your company must be operationally and financially prepared for a sale to capture that opportunity.

A Wave of Retiring Owners and Favorable Conditions

Kiplinger highlights that millions of Baby Boomers, who own a large share of U.S. private businesses, are now moving toward retirement. As a result, “more small businesses are going up for sale”. This influx of sellers can drive competition among buyers and help boost valuations, especially if market conditions hold. The same Kiplinger report notes that inflation has likely peaked and the Federal Reserve may hold interest rates steady. Stable financing costs make it easier for buyers to secure deals and can support stronger sale prices. In short, the current economic climate is supporting M&A activity, making now a particularly attractive time to consider a sale.

Prepare Your Business for the Market

Kiplinger emphasizes that successful exits depend on thorough preparation. There are essentially two components to selling: getting the business itself ready and getting you, the owner, ready for the transition. On the business side, focus on strengthening your fundamentals long before listing. Key steps include:

• Boost Financial Performance: Track and improve your company’s financial metrics, with an emphasis on recurring revenue streams. A clean, well-organized financial record makes due diligence smoother and supports a higher valuation.
• Build a Strong Management Team: Ensure you have a capable leadership team in place. Kiplinger notes that “strengthening the management team” is crucial. Buyers pay more for companies they can trust to run themselves after the founder departs.
• Differentiate from Competitors: Clearly articulate what makes your business unique. The Kiplinger Letter advises “distinguishing yourself from competitors” to add value. Highlight any proprietary products, niche markets, or strong brand recognition that set you apart.
• Diversify Your Customer Base: Avoid over-reliance on a few customers. By broadening your customer base, you make your revenue more stable – a factor Kiplinger says can shorten the sales process. Buyers value diversified, predictable income streams.

Check out our article on “The 10 Steps to Take to Maximize the Value of Your Business” for more tips. These improvements are long-term endeavors, but they pay off. As Kiplinger notes, improving these areas today “can shorten the process of selling later on”. In other words, the more you prepare now, the quicker and smoother the sale will be when you’re ready.

Partner with ACT Capital Advisors

Selling a business is also a deeply personal process. You need to be mentally and financially ready for the transition, and you must understand your goals (whether that’s maximizing sale price, keeping the business in the family, or other priorities). That’s why working with experienced M&A advisors is a crucial part of the process.

Whether you’re ready to sell or just starting to explore your options, working with seasoned advisors like ACT Capital Advisors positions your business to attract the most qualified buyers. ACT’s team will help you refine your exit strategy, improve operations and financials, and connect with multiple bidders to maximize value and optimize deal terms.

Contact ACT Capital Advisors today to get started on your exit plan. Our experts will guide you through every step – from strengthening your business fundamentals to negotiating the deal – so you can sell with confidence on your terms.

About ACT Capital Advisors
ACT Capital Advisors is a premier mergers & acquisitions firm representing lower to middle-market companies across all industries. ACT has a 40-year history of deal-making, closing 250+ transactions, and unlocking over $2.5 billion in wealth for its clients. For more information, visit ACT Capital Advisors.