Sell, close, or continue? The transfer of US businesses is at a crossroads

The "Great Ownership Transfer" involves an estimated 6 million small businesses transitioning ownership as baby boomers retire, putting approximately $5 trillion in enterprise value at risk. McKinsey partners Ken Yearwood and Shelley Stewart III highlight that while the U.S. excels at fostering new business formation, it lacks the necessary infrastructure to facilitate these critical successions. If these viable businesses close, the resulting loss of jobs and tax revenue will disproportionately impact rural communities and exacerbate economic inequality. To mitigate these risks, the economy requires a broader pool of competitive buyers and creative financing models, such as seller financing, community capital, and search funds. Addressing this "missing middle" in financing and improving transition planning are essential to preserving local economic engines and fostering long-term wealth creation for both the retiring generation and their successors.