How the Great Generational Transfer is Driving Family Business M&A deals

Pullman & Comley Business and Finance attorney Matthew Glennon examines the massive generational shift underway as Baby Boomers retire and begin transferring ownership of millions of family‑run companies. In an Expert's Corner column for the Hartford Business Journal, Matt, who frequently advises clients on M&A, writes that the United States “is in the midst of an unprecedented generational wealth transfer that is having an outsized impact on family businesses,” with an estimated $84 trillion to $124 trillion expected to change hands over the next two decades.

Just over 40 percent of U.S. privately owned small businesses are currently run by Boomers, and Matt notes than more than 12 million businesses could change hands in the next decade. Yet fewer than one‑third have a formal succession plan, forcing many owners to pursue third‑party sales.

While market uncertainty over the past year slowed dealmaking, “Nonetheless, the demographics indicate that there will be continued need to sell businesses,” Matt says, “while younger buyers, armed with capital, institutional backing or making leveraged plays are stepping in to acquire and grow these legacy enterprises.”

Matt also notes that many family businesses are attractive but require modernization, especially in technology and AI. As aging owners prepare to exit, he emphasizes the importance of thoughtful planning, advising sellers to “dress your business up for sale” to maximize valuation.

To read the full article, visit the Hartford Business Journal website.