Next-Gen Entrepreneurs: What the New Wave of Buyers Expect from Middle-Market Sellers by Generational Group
Published on: 06/18/2025
The rise of next-generation entrepreneurs is reshaping the middle-market landscape in mergers and acquisitions (M&A) These new-age buyers, often characterized by their tech-savvy mindset and entrepreneurial drive, have different expectations from middle-market sellers compared to their predecessors Understanding these expectations is crucial for sellers seeking to attract the right buyers and secure successful transactions, as demonstrated by the Generational Group
One of the primary factors that sets next-gen buyers apart is their heavy reliance on technology. These entrepreneurs grew up in a digital world, and they expect the companies they acquire to be digitally advanced, or at least to have the potential for digital transformation Middle-market sellers who are behind the curve in terms of digital infrastructure may face challenges when negotiating with these buyers. Next-gen buyers often seek businesses that have robust digital strategies, efficient operations, and scalable technology that can be enhanced with their innovation
Another key expectation is a focus on sustainability and social impact. Today’s buyers are more inclined to invest in companies that have a clear sense of purpose and align with their values Environmental, social, and governance (ESG) factors are becoming increasingly
important Buyers want to see that sellers are not only profitable but also mindful of their environmental footprint and social responsibility. Sellers who can demonstrate sustainable business practices are likely to be more attractive to this new generation of buyers.
Furthermore, next-gen entrepreneurs tend to prioritize businesses with a strong growth trajectory and untapped potential. They are more inclined to invest in companies that offer opportunities for innovation and expansion Sellers who have a clear vision for future growth, along with a solid strategy to achieve it, will be better positioned to attract interest from next-gen buyers
The new wave of buyers is looking for businesses that are digitally advanced, socially responsible, and poised for growth Middle-market sellers who align with these expectations will be in a stronger position to secure successful deals and thrive in the evolving M&A landscape.