An estimated six million small and midsize family-owned businesses will undergo ownership transitions by 2035, according to the McKinsey Institute for Economic Mobility. This staggering figure, driven largely by retiring baby boomer owners, represents more than one million viable candidates for sale and up to $5 trillion in enterprise value. For founders and their families, the question is not whether a transition will occur, but whether it will happen on their terms or by default.
Market Street Capital, a boutique capital markets and financial advisory firm, is positioning itself to help business owners navigate this pivotal moment. Through its strategic planning and advisory practice and investment banking platform, the firm advises founder-led and family-owned companies on succession planning, sell-side mergers and acquisitions, and capital structure decisions well before a transaction is on the table. The firm’s platform has advised on more than $3 billion in completed transactions, providing a depth of experience that is critical when preparing for a transition.
The implications of this demographic wave are profound. Without proper planning, thousands of businesses could be forced into rushed sales, undervalued transactions, or outright closures, jeopardizing jobs, local economies, and the legacies that families have built over decades. For owners, the key is to start early. Reliable numbers and informed guidance are essential to understanding valuation, structuring a deal, and ensuring that the next generation—or a new owner—is set up for success.
Market Street Capital’s approach emphasizes proactive preparation. By engaging with clients long before a sale is imminent, the firm helps them assess their options, optimize their capital structure, and align personal and business goals. This is particularly important for industrial businesses, which often have complex operations, significant assets, and deep community ties. A well-planned succession can preserve those ties while unlocking value for the owners.
The scale of the coming transition also presents opportunities for buyers and investors. With over one million businesses likely to be sold, there will be a robust market for acquisitions. However, not all businesses will be ready. Those that have invested in professional advisory services will be better positioned to attract premium valuations and to ensure a smooth handover. As the McKinsey data suggests, the next decade will see an unprecedented transfer of wealth and control. For family-owned businesses, the time to act is now.
For more information about Market Street Capital, visit www.MarketStreetCP.com. The firm’s work is supported by a network that includes InvestorWire, a communications platform that distributes news and content to a wide audience. Additional details about InvestorWire’s terms and disclaimers are available at https://www.InvestorWire.com/Disclaimer. Broker-dealer services are provided by Pickwick Capital Partners, LLC, Member FINRA/SIPC. This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Nothing herein is tax, legal, or accounting advice. Readers should consult their own advisers.
