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Why the next decade belongs to small business partners
Between now and 2035, approximately 6 million small and medium-size businesses will face ownership transitions as baby boomer owners retire. More than 1 million of these firms are viable candidates for sale. This is the largest transfer of business wealth in American history.
Source: McKinsey Institute for Economic Mobility, February 2026
Only 5% are completed sales. The rest? Owners simply close the doors. Decades of work. Customer relationships. Trained employees. Equipment. Brand value. Gone.
This isn't because these businesses aren't valuable. It's because most owners don't know how to sell. They don't have a broker. They don't understand valuation. They don't have a buyer pipeline.
Annual exits could rise to 42% above 2011 levels. As many as 665,000 businesses per year looking for buyers. More supply means better deals, better terms, and motivated sellers willing to structure creative financing.
| Metric | 2025 Data | Trend |
|---|---|---|
| Total Market Value | $7.95 billion | +3% YoY |
| Median Sale Price | $350,000 | +2% YoY |
| Median Cash Flow (SDE) | $158,950 | +3% YoY |
| Average SDE Multiple | 2.57x | Stable |
| Brokers Expecting Higher Volume | 80% | Bullish |
Source: BizBuySell 2025 Year-End Insight Report
72% of brokers anticipate more owners coming to market in 2026, driven by Baby Boomer retirements. Nearly half report Boomers already make up the majority of their listings.
Retiring owners often prioritize certainty over maximum price. They want to hand off to someone who will take care of their employees and customers. This creates negotiation leverage for buyers.
Owners who can't find traditional buyers often agree to carry a note. This means you can acquire with less cash down and let the business pay for itself.
Most capital is chasing tech startups and real estate. Small business remains an inefficient market where preparation beats competition.
Laundromats, HVAC companies, waste management, healthcare services. These businesses run regardless of market conditions.
Small businesses employ over 60 million workers. Nearly half the US workforce. When these businesses close instead of sell, those jobs disappear. Communities lose services. Wealth evaporates.
For partners, this represents an asymmetric opportunity. Capital is needed. Returns are available. The question is whether you're positioned to act when the right deal appears.
The greatest wealth transfer in American business history is happening now. The partners who understand this will be the ones who benefit from it.
HedgeStone Business Advisors | Billionaire Buyers Club | hedgestone.com | (561) 593-3711