Sell, close, or continue? The transfer of US businesses is at a crossroads
5/14/202626 min
A historic wave of ownership transitions is set to reshape the backbone of the US economy. The fate of jobs, local spending, and wealth creation all hinge on whether enough qualified—and diverse—buyers can step in to continue to pave the way for small business ownership. In this episode, Shelley Stewart III, McKinsey senior partner and Roberta Fusaro, editorial director, talk about the scale and stakes of the "Great Ownership transfer". After, Ken Yearwood, McKinsey partner, joins to talk about the risks of inaction and the practical pathways to making these transitions work.
The McKinsey Podcast: https://www.mckinsey.com/featured-insights/mckinsey-podcast
Shelley Stewart III: https://www.mckinsey.com/our-people/shelley-stewart
The Great Ownership Transfer report: https://www.mckinsey.com/institute-for-economic-mobility/our-insights/the-great-ownership-transfer-a-new-era-of-business-stewardship
McKinsey Institute for Economic Mobility: https://www.mckinsey.com/institute-for-economic-mobility/overview
Theme music composed, performed, and produced by Joy Ngiaw.
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First 90 secondsRoberta Fusaro· Host0:01
According to a recent report from the McKinsey Institute for Economic Mobility, trillions of dollars in assets are at stake as a wave of small business owners in the US retire.
Ken Yearwood· Guest0:14
The risks are massive, right? At first, there's the potential for just viable businesses to close, right? These are perfectly healthy businesses. These businesses drive tax revenue, they drive jobs. They are the underpinning of communities across the country.
Roberta Fusaro· Host0:31
That's McKinsey partner Ken Yearwood, a co-author of the report. He joins me and McKinsey senior partner Shelley Stuart III, another co-author, to talk about specific pathways for keeping these businesses open and what's really at stake in this great ownership transfer. This is "The McKinsey Podcast," where we help you make sense out of the world's toughest business challenges. I'm Roberta Fazzaro, your host for today. [upbeat music] First up, here's Shelley to set the context. So we're here today to talk about something that we're calling the great ownership transfer. Can you describe what exactly this great ownership transfer is, and why is this moment so different from past waves of business succession?
Shelley Stewart III· Guest1:25
Absolutely. Over the next decade, we expect that