Navigating the ‘Silver Tsunami’: How Retiring Business Owners Create Opportunities for Patron Companies

In Australia over 40% of small business owners will retire by 2030

The business landscape is experiencing a significant shift known as the “Silver Tsunami.” 

This describes the growing wave of small business owners reaching retirement age, creating both challenges and opportunities for the future. Nearly 40% of small business owners in countries like Australia, the US, and the UK are over 55 years old and may be considering an exit within the next decade.

For Patron Companies, this demographic trend opens an extraordinary opportunity: to become a trusted partner for retiring founders, preserving their legacies while strategically building our own.

The Silver Tsunami in Numbers

Aging business owners are a reality. A 2022 survey of Australian business owners found that:

• 39% are over the age of 55.

• 47% plan to retire within 5-10 years.

• The majority do not have a formal succession plan, leaving an uncertain future for their companies.

As Adrian Warner explained “…For many of these founders, their businesses are personal legacies, built over decades and often serving as pillars in their communities. Without family members or successors ready to take over, there’s a real risk that these businesses might struggle to transition effectively.”  At Patron Companies, the aim to bridge this gap by providing a succession solution that values the people, culture, and identity of these businesses.

Patron as a Safe Haven for Family-Owned Businesses

Patron Companies is structured to be a “safe haven” for small, family-owned businesses looking for a secure transition. Here’s how:

• Perpetual Ownership Horizon: We think long-term, with no plans to flip or sell the businesses we acquire. This aligns with the interests of retiring founders who want their businesses to thrive well into the future.

• Respect for Culture and Legacy: Unlike some buyers, we don’t seek to integrate acquisitions into a rigid corporate structure. Instead, each business retains its brand, identity, and team.

• Care for Teams and Customers: We recognize the value of each company’s team and customer relationships. By allowing acquired companies to operate independently, we protect the unique culture that made them successful in the first place.

Why the Silver Tsunami Is an Opportunity for Patron Companies

This generational turnover of business ownership doesn’t just create individual acquisition opportunities—it creates a reliable pipeline of businesses for Patron to choose from, allowing us to be selective.

• High-Quality Pipeline: With many retiring owners, we have the flexibility to focus on businesses with strong cash flow, established market positions, and enduring potential.

• Attractive Valuations: With limited competition from institutional buyers in the small business market, we can acquire companies at favourable valuations, creating better returns for investors.

• Long-Term Compounding: Each acquisition adds to a diversified stream of cash flows, which we can reinvest into further high-quality acquisitions, generating long-term value for our stakeholders.

Why Patron Is the Right Partner for Retiring Founders

The decision to sell a business is deeply personal, and many founders care most about finding a buyer who will preserve what they’ve built. Here’s what makes Patron a valuable partner in these transitions:

• A Friendly Face in Acquisition: We understand that these businesses are more than just assets. We treat each acquisition with the respect it deserves, ensuring that both the business and its people feel valued.

• Selective Acquisitions: The Silver Tsunami allows us to pick the best companies. We aim to acquire businesses with strong foundations and growth potential, giving us the ability to grow together.

• Growth-Oriented, Not Integration-Focused: Rather than stripping down businesses or imposing a rigid corporate identity, we invest in their growth. Founders can rest assured that their companies will be supported and nurtured, not dismantled.

Compounding for the Long Term: Building a Diversified Cash Flow Machine

The long-term view at Patron Companies is to create a highly diversified portfolio of cash-generating businesses, each reinforcing the overall strength and value of the whole. Here’s how we’re building a solid foundation for sustainable compounding:

• Reinvestment of Cash Flows: The cash generated from our acquisitions is reinvested in acquiring additional businesses, creating a “flywheel” of growth. Over time, this self-funding approach builds a resilient and profitable company.

• Predictable, High-Quality Returns: By being selective and focusing on strong businesses acquired at reasonable valuations, we set ourselves up for reliable cash flows and high returns.

• Diversification for Stability: Our portfolio will include businesses from a range of industries, providing stability and reducing risk through diversification.

Embracing the Opportunity

The wave of retiring founders presents a unique opportunity for Patron Companies to become the partner of choice for succession planning. By acquiring and nurturing high-quality small businesses, we’re setting the stage for growth that benefits our investors, supports the people and communities served by these businesses, and secures the legacies of retiring founders.

As the Silver Tsunami continues, we’re prepared to navigate the opportunities it presents, committed to long-term value creation, and excited to be a friendly force in the transition of ownership in the small business space. Patron Companies is here to make a difference—not only for our shareholders but for every small business we have the privilege to call part of our family.