A perfect storm is brewing in the small business market. It’s driven by two converging forces: retiring Baby Boomers looking to exit their businesses and a new wave of entrepreneurs emerging from corporate America.
Baby Boomers represent just over 20% of the population. Disproportionately, they own more than 50% of small businesses. With this generation born between 1946-64, even its youngest members reached 60 in 2024, while its eldest turned 78.
These demographics signal a significant wave of business transitions on the horizon.
Meanwhile, a new generation of entrepreneurs is rising.
This drive towards business ownership is driven by various motivations, including a desire for greater control, workplace flexibility and financial independence.
The post-COVID reduction in remote work opportunities has further accelerated this trend, pushing many corporate professionals to consider business ownership.
Tucson stands to benefit significantly from this convergence of buyers and sellers. We are a city where small businesses employ the majority of workers. If the demographics hold, there are (and will be for years ahead) a significant number of business transitions reshaping the local economy.
At the center of this transformation is Dana Cole and Sound Business Brokers of Arizona. Dana and her team, with over 30 years of experience in the business brokerage industry in Southern Arizona, facilitate business continuity by connecting sellers with qualified buyers.
The current market dynamics are unprecedented, with Cole reporting that more than half of potential buyers are coming from outside Arizona.
Tucson and the Southern Arizona region is a wonderful place to live, with great climate, a diverse population and a wide array of activities to enjoy. It’s the kind of place that attracts those with money to invest, Cole says.
Transaction volumes tell the story: while Cole averaged 10 deals annually pre-Covid, that number tripled to over 30 transactions in process in 2024.
I am the busiest I have ever been in 30-plus years of assisting buyers and sellers of companies. Companies are cash-strong, and they are profitable.
Cole
Three things distinguish Sound Business Brokers in Tucson’s market. First is their relationship-based approach. Rather than viewing business sales as mere transactions, Cole and her team know that preparing a business for sale or transition often takes years. It is a multi-year process to position a business in the best light for potential buyers, Cole notes.
Second is their matchmaking skills. Matchmaking involves clarifying goals and desires of both sellers and buyers, and then looking for alignment between the two.
For a lot of small business owners, selling the company is an emotional challenge, with many years spent building the company. It is their baby, so to speak. As a coach in this process, Cole helps bring clarity to this emotional situation, helping each party set realistic expectations. Without this matchmaking expertise, the ongoing success of the business becomes problematic.
Third is understanding the Tucson market. An interesting current market trend are Phoenix-based brokers trying to poach Tucson deals. Without a deep familiarity with Tucson’s unique business landscape and lacking “boots on the ground,” these brokers often turn to experienced local talent for assistance. This underscores Sound Business Brokers 30-plus years of experience, and them truly knowing the area and its business community.
Lastly, their comprehensive process ensures confidentiality and screens out competitors seeking proprietary information. Cole’s network includes CPAs, attorneys, financial planners, and insurance brokers who specialize in business transfer complexities.
This ecosystem creates three positive outcomes:
Business sellers receive fair compensation for their life’s work
Buyers acquire established, successful enterprises
Tucson’s economy benefits from business continuity and fresh investment
Through Cole’s work at Sound Business Brokers, these business transitions strengthen Tucson’s economic fabric, as out-of-state investors bring new energy while preserving local business legacies.
