Must Read Report: McKinsey - Great Ownership Transfer

The McKinsey report on the “Great Ownership Transfer” is one of the more insightful analyses I’ve seen on the coming wave of small-business ownership transitions. For anyone involved in entrepreneurship through acquisition, independent sponsorship, or family office investing in SMBs, it is well worth the read. A few points from the report stood out: • By 2035, about six million small and medium-size businesses will face ownership transitions. • 27% of business owners report uncertainty about how to structure their exit or succession plan. • Many of these companies are deeply embedded in their local communities, employing local workers and supporting regional economies. The coming transition represents a “once-in-a-lifetime” opportunity for entrepreneurs, search funders, and independent sponsors looking to acquire and operate businesses. For family offices and investors, this moment also presents a compelling opportunity to back the next generation of operators while supporting the communities these businesses serve. What is also clear from the report is that many transactions in the $500K–$25MM range will come to market with unique challenges. Successfully navigating these deals requires legal and advisory partners who understand both the transaction mechanics and the realities of privately held businesses. I’ll share several additional insights from the report in an upcoming edition of the Search Fund Operate newsletter. Check out the report here: https://www.mckinsey.com/institute-for-economic-mobility/our-insights/the-great-ownership-transfer-a-new-era-of-business-stewardship#/