Michigan, Florida, And Texas Top New Ranking Of Best States To Acquire A Business
Baby Boomers Will Be Transferring $8 Trillion in Business Wealth - National Business Capital Reveals Where Entrepreneurs Can Capitalize On That Opportunity
HAUPPAUGE, N.Y., June 25, 2025 /PRNewswire/ -- Not every entrepreneur wants to build something from the ground up. And, right now, they don't have to. More than 2 million business owners plan to retire over the next decade. That opens an opportunity for a new generation of entrepreneurs to purchase established businesses and take them to the next level.
According to economists, Baby Boomerscontrolnearly $8 trillion in private business equity in companies poised for leadership transitions. That shift is part of a broader $80 trillion wealth transfer already underway.
A new report from National Business Capital, the fintech lending platform for business owners, identifies the best states for those looking to step into existing businesses. The study: "The Best (and Worst) States to Buy an Established Business," offers insights into where to find profitable companies, and where to avoid the risks. The report ranks all 50 states and measures key data for prospective buyers including: 10-year survival rates, access to capital, digital infrastructure, GDP growth, and ownership turnover.
States like Michigan(#1), Florida(#2), and Texas(#3) offer strong buying conditions, with high business survival rates, active economies, and better access to capital. The Midwest stands out for its balance of affordability and stability, while parts of the South, including Arkansas (#50), Mississippi(#49), and Louisiana (#45), pose major challenges for buyers because of poor infrastructure and limited financing options.
The full study is available HERE:
Key Findings
- Entrepreneurs have more options than ever. Over 2 million business owners will retire soon, allowing entrepreneurs to purchase existing companies.
- Most businesses don't survive 10 years - but some states defy the odds. Nationwide, only 35.2% of businesses make it a decade. Montana leads at 41%, while Virginia sits at the bottom with 30.2%.
- Top-ranked states combine strong infrastructure, financing access, and economic momentum.Michigan, Florida, and Texas rank highest.
- Red states dominate both the best and worst rankings. They make up 60% of the Top 10 and 70% of the Bottom 10, revealing big differences in outcomes despite similar political approaches.
- Blue states edge out higher average overall scores, but trade-offs remain. They outperform on digital infrastructure and SBA loan approvals, while red states show stronger business survival and GDP growth.
"We're looking at trillions in Boomer-owned businesses changing hands," says Joe Camberato, CEO, National Business Capital. "This is a once-in-a-generation chance to take over a proven business and grow it. Our report shows exactly where buyers should be looking."
The 10 Best States to Buy an Established Business
The 10 Worst States to Buy an Established Business
41. Iowa(Score: 37.8 out of 100)
42. Maine(37.5)
43. West Virginia(36.5)
44. Alabama(35.6)
45. Hawaii(32.4, tied)
46. Louisiana(32.4, tied)
47. Alaska(32)
48. New Mexico(29)
49. Mississippi(27.4)
50. Arkansas(23.8)
METRICS
- Business Owners 55+ (15%)
- GDP Growth By State (15%)
- Patents Filed Per 100,000 Residents (13%)
- Survival Rates (15%)
- Broadband Access (14%)
- SBA Loan Approval Per 100,000 residents (14%)
- Tax Burden (14%)
About National Business Capital:
NationalBusinessCapital a pioneer of non-bank financing, provides non-asset-backed financing solutions ranging from $250K to $10MM. Since 2007, the company has financed billions of dollars while innovating how business leaders access growth capital. The team's approach to each transaction allows clients to maximize financing options.
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SOURCE National Business Capital