The Great Ownership Transfer: Why Veteran-Owned Businesses Must Act Now

McKinsey & Company recently released a report entitled “The Great Ownership Transfer: The coming wave of business succession and what it means for the US economy.” According to the report, the United States is entering the largest small-business ownership transition in history. Millions of retiring owners lack succession plans, and the consequences are severe. Without structured transitions, up to six million businesses could shut down, eliminating twelve million jobs and destabilizing local economies, especially in rural and aging communities where small businesses anchor employment and tax revenue.

For Veteran-owned businesses, the stakes are even higher:

• VOBs often serve as economic engines in Veteran communities.
• Many VOBs operate in industries (construction, logistics, professional services) where corporate and government buyers rely heavily on certified Veteran suppliers.
• If a VOB closes rather than transitions, the Veteran-owned status disappears, and the supply chain loses a critical diverse-supplier partner.

Yet most Veteran business owners have no formal exit strategy, no valuation plan and no identified Veteran successor. In the context of the Great Ownership Transfer, that gap is no longer sustainable.

Why Exit Planning Matters for Veteran Business Owners

For the owner preparing to retire, exit planning is not simply a financial exercise, it’s a legacy decision.

1. Maximizing Valuation

McKinsey’s research highlights that more than one million small businesses are viable candidates for sale, but many owners fail to capture full enterprise value because they wait too long to prepare for transition. Valuation depends on:

• Documented financial performance
• Operational maturity
• Customer concentration
• Contract stability
• Leadership continuity

Veteran-owned businesses with strong corporate and government relationships can command premium valuations, but only if the business is prepared for sale.

2. Protecting Employees and Community Impact

Veteran-owned firms often employ Veterans at higher rates than non-VOBs. A sale to another Veteran preserves that employment pipeline and keeps the business rooted in its community.

3. Preserving Veteran-Owned Status

If a VOB is sold to a non-Veteran, the business loses its certification and the associated market advantages. For owners who spent decades building a Veteran-owned brand, selling to another Veteran protects that legacy.

Why Exit Planning Matters for Veteran Buyers

McKinsey’s research shows a major gap: there are not enough qualified buyers ready to step in as millions of businesses come up for sale. This is a strategic opportunity for Veterans.

1. A Pathway to Entrepreneurship Without Starting From Zero

Buying an existing business, especially one already certified as Veteran-owned, allows a Veteran entrepreneur to:

• Step into established revenue
• Retain existing customers
• Leverage existing contracts
• Build wealth faster than starting from scratch

2. Preserving Veteran-Owned Status

When a Veteran buys a NaVOBA Certified Veteran’s Business Enterprise® and ensures the new entity is at least 51% owned, operated and controlled by U.S. military Veterans, the certification remains intact. This protects access to government supplier diversity programs, set-aside opportunities and corporate procurement channels.

3. Strengthening the Veteran Business Ecosystem

Each successful transition keeps a Veteran-owned business alive, maintains jobs and expands the network of Veteran entrepreneurs who can mentor and invest in future generations.

Why Exit Planning Matters for Corporate & Government Customers

Corporate supplier-diversity leaders and government contracting officers have a vested interest in ensuring Veteran-owned suppliers remain stable.

1. Continuity of Supply

The Great Ownership Transfer threatens supply chain stability. If a Veteran-owned supplier closes due to lack of succession planning, buyers lose:

• Contract continuity
• Performance reliability
• Veteran-Owned spend
• Hard-to-replace industry expertise

2. Preserving Veteran-Owned Spend

Many corporations and agencies have Veteran-owned business goals. When VOBs disappear, those goals become harder to meet.

3. Strengthening Community Impact

Veteran-owned suppliers contribute to local economies, hire Veterans and support community resilience. Their survival matters.

Corporate and government buyers increasingly recognize that supporting Veteran-to-Veteran business transitions is a strategic investment in longterm supplier stability.

NaVOBA’s Upcoming Training: Preparing VOBs to Maximize Valuation

To meet this moment, NaVOBA is launching a specialized training program designed to help Veteran business owners prepare for sale, maximize valuation and transition their businesses to the next generation of Veteran entrepreneurs.

What the Training Covers

This program is built specifically for VOBs and grounded in the realities highlighted by McKinsey’s research:

• Understanding valuation drivers What increases or decreases the value of a Veteran-owned business?
• Preparing financials for sale How to present clean, defensible financials that attract buyers.
• Operational readiness Systems, processes and documentation that increase enterprise value.
• Identifying Veteran buyers How to find and vet Veteran successors who can maintain certification.
• Structuring the deal Options for financing, earnouts and seller support.
• Protecting Veteran-owned status post-sale Ensuring continuity for corporate and government customers.

Who Should Attend

• Veteran business owners planning to retire in the next 3–10 years
• Veteran entrepreneurs interested in acquiring a business
• Corporate supplier-diversity leaders who want to support continuity in their VOB supply chain

Why This Training Matters Now

The Great Ownership Transfer is accelerating. Every year that a Veteran business owner delays exit planning, valuation potential decreases and transition risk increases. This training ensures VOBs are not left behind in the largest business-ownership shift in American history.

A Win–Win–Win Scenario for the Veteran Business Ecosystem

When Veteran-owned businesses plan their exit and sell to other Veterans, three stakeholder groups win:

1. The Veteran Owner (Seller)

• Captures maximum valuation
• Protects legacy
• Ensures employees, often Veterans, remain supported
• Preserves the business’s Veteran-owned identity

2. The Veteran Buyer

• Gains a proven business with existing revenue
• Steps into established contracts and customer relationships
• Builds wealth and entrepreneurship pathways
• Strengthens the Veteran business community

3. Corporate & Government Customers

• Maintain continuity of supply
• Preserve Veteran-owned spend
• Reduce risk of supplier disruption
• Support a sustainable Veteran-owned ecosystem

This is the future of Veteran entrepreneurship: Veterans selling to Veterans, preserving certification and strengthening the entire supply chain.

Final Takeaway

McKinsey’s research makes one thing clear: the Great Ownership Transfer is reshaping the American economy, and Veteran-owned businesses must prepare now. Exit planning is not optional; it is a strategic imperative.

NaVOBA’s upcoming training gives Veteran business owners the tools they need to:

• Maximize valuation
• Prepare for sale
• Transition their business to another Veteran
• Protect the Veteran-owned supply chain

If you are a Veteran business owner, or a Veteran entrepreneur ready to buy, this is your moment. The next decade will define the future of Veteran-owned businesses in America. Let’s make sure those businesses stay Veteran-owned.