Business is booming: A golden opportunity for entrepreneurs

Business is booming: A golden opportunity for aspiring entrepreneurs

Originally published in Bay Buzz, 5 August 2025

As New Zealand’s Baby Boomer generation continues into retirement, the business landscape is poised for a significant shift—and for younger generations, it may be the perfect time to take the leap into ownership.

Michelle Menzies, Partner at Nexia Hawke’s Bay, says that the coming years will present an unprecedented wave of business ownership transitions.

“We’re entering a phase where opportunities abound,” she explains. “With a wide range of businesses, across many industries, soon to be for sale, the door is wide open for aspiring business owners.” The numbers speak for themselves: around 25% of New Zealand’s small-to-medium enterprises (SMEs) are owned by Baby Boomers, equating to roughly 100,000 registered Companies on the NZ Companies Office.

Estimates suggest that nearly 77% of these owners plan to exit within the next five years. That mass exodus offers fertile ground for Gen X and Millennial buyers to step in—not only to continue the legacy of these businesses, but also to reimagine them for the future.

While some entrepreneurs may be tempted to build their own ventures from scratch, purchasing an established business offers distinct advantages.

“It’s a way to hit the ground running,” says Menzies. Buyers inherit more than just a name—they gain an existing client base, experienced staff, supplier relationships, operational systems, and, perhaps most importantly, steady cash flow.

These are assets that new startups often struggle to secure in their early stages. Access to funding is typically easier for those buying an existing business, too. Lenders are more inclined to finance a proven model than take a gamble on a startup.

There’s also the intangible value of trust. Boomer-owned businesses are known for their reliability, strong customer relationships, and longstanding reputations—qualities that translate into brand strength and stable revenue. Buyers often see these factors as key to ensuring a smooth transition and minimal disruption during the handover. Yet despite their solid foundations, many of these businesses come with untapped potential—especially in the realm of technology.

Menzies believes this is where younger buyers can truly add value. “Boomers have built great businesses, but many haven’t embraced digital tools to their full potential,” she says.

“Younger owners can modernise operations, improve efficiency, and expand into new markets by implementing the right tech solutions.” From automating processes and upgrading customer service systems to launching e-commerce platforms, there are countless ways for forward-thinking owners to unlock growth. In many cases, it’s about bridging the gap between traditional business acumen and modern innovation. This generational handover also has broader economic implications.

As Boomers sell their businesses, they free up capital to fund their retirements, reducing reliance on government support. In turn, this allows public funding to be redirected toward progressive initiatives that fuel the country’s economic development.

Menzies offers practical advice for both buyers and sellers. “No matter which side of the equation you’re on, preparation is key.” For sellers, that means tidying up financial records, formalising systems and processes, and documenting key business operations.

“You want to make your business as attractive and turnkey as possible,” she says. For buyers, the focus should be on clarity and diligence. Define what kind of business suits your goals, thoroughly research your options, and conduct detailed due diligence before making an offer.

“It’s about finding the right fit— not just financially, but culturally and operationally.”

Whether you’re a Boomer ready to move on, or a new entrepreneur looking to take the reins, this transition period marks a unique moment in New Zealand’s economic timeline. With the right strategy, it could be the perfect time to make your move.

Originally published in Bay Buzz, August 2025