4 exit options baby boomer business owners might want to consider

With the youngest of the baby boomers now in their early 60s, business owners in this generation could benefit from considering exit strategies if they haven’t already.

An article in the Guardian (29 March 2026) notes that as small business owners prepare to retire, their companies could disappear. After you’ve dedicated so much time to your business, you might want to take steps to create a lasting legacy, and an effective exit strategy may help you achieve that goal.

While some entrepreneurs prepare to step back, there are eager individuals who are ready to take the reins. Deciding what’s right for you and your business may feel daunting, but going through the different options could help you feel more in control.

Here are four different exit strategies to consider:

1. Find a buyer for your business

Selling your business to another person or company could help you obtain the funds you need to be financially secure, especially if it offers a strategic advantage to prospective buyers.

While a sale seems straightforward, there’s often a lot of work to do beforehand. To increase the potential sale price, you might want to spend time increasing your customer base or reducing potential risks. As a result, it’s a process you might benefit from starting years before you plan to step back.

2. Pass your business to a family member

For some business owners, selling to a stranger might be difficult. Instead, the prospect of the business staying within the family may be comforting.

Whether you want your child or another family member to be your successor, a transition period is often a good idea. This could help your family member build the skills they need to take over the management of the business.

3. Facilitate a management buyout

In a management buyout, your existing management team could take control of the business. In some cases, this results in a lower price than if you sought an outside buyer, but it could be a more efficient option.

You might also find this a good choice if your legacy is important, and you won’t be passing the business to a family member. You already know the team, so you might worry less about the future of the business and its employees.

4. Use an Employee Ownership Trust

Finally, it’s possible to transfer your shares to an Employee Ownership Trust (EOT), which is then held for the benefit of employees. This would allow the business to continue and employees to remain in their current roles.

You could choose to play an ongoing role in the business

Remember, you don’t have to sever all ties with your business. You could choose to play an ongoing role in its operations.

For some, sitting on the board of directors could allow them to strike a new work-life balance that suits them while retaining some oversight. Alternatively, you might still be a shareholder in the business or even continue to work as an employee.

Setting out your preference now could help you structure your exit strategy so that it aligns with your wishes.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.