U.S. EMM quick facts:
The future of EMM business ownership
With 26% of middle market businesses forecasted to transition ownership in the next two years,³ it’s a good time to start understanding who these new owners will be. And more importantly, how their behavior, values, strengths and challenges will shape the future of the emerging middle market.
The new business owners: A technology-first generation
How do Millennials differ from their predecessors? For starters, they’re more likely to embrace technology. Tools like AI and virtual payment solutions are a natural fit to their digital-first approach—appealing to their desire for greater work-life balance. Streamlining systems, reducing workflow redundancies and enabling more flexible work environments are all highly motivating outcomes for these owners, and emerging technologies aim to deliver on those promises.
Achieving digital goals
As digital natives, Millennials are typically more comfortable with technology, automation and social media than the previous generation of owners. Ownership successors are likely to bring in new technologies such as CRM, AI tools, e-commerce and updated marketing practices.
Services that support companies’ data and automation needs can help drive greater productivity and efficiency in financial functions. Issuers and fintechs can lean into Millennials’ appetite for digitizing processes by offering a range of affordable and scalable solutions tailored to emerging companies such as virtual credit cards and embedded payment solutions.
Feeding and funding growth
Despite uncertainty in the first quarter of 2025, revenue growth in the EMM remains strong at 10.7%. One of the most significant obstacles for these businesses is keeping up with the demands of their growth, with 51% of EMM owners reporting it as a challenge.³ Greater efficiencies and access to capital are required as the business scales up, and they can find themselves unprepared.
Going beyond traditional lending
Consider that incoming Millennial owners may need financing support, such as SBA loans or owner-financed terms. However, it’s also important to keep in mind that innovative working capital solutions could be attractive to this new generation of owners. This includes solutions such as virtual cards, expense management tools and a diverse set of underwriting approaches, which include more frequent underwriting reviews. The typically rapid growth of this segment means working capital can be put to good use.
Passing the baton smoothly
The generational shift also naturally highlights the need to prepare businesses for sale or inheritance. Financial institutions can take the lead in helping them to prepare for a smooth transition in ownership. Transition plans should operate at three levels: business value growth, business value transfer and legacy.
Before structuring a purchase plan or equity transfer, the business’s fair market value needs to be determined. FIs can work with financial and legal advisors to minimize the tax implications for both parties. Trusts or gifting strategies may be wise if the succession is within the family.
When planning for succession to Millennial ownership, it’s important to consider their values and expectations. Flexibility, social impact and innovation are more important to them than traditional hierarchies or primarily profit-driven goals.
Transition plans should accommodate these values and innovations while clearly communicating existing client expectations and business strengths. Documenting these legacy systems can ensure that its assets and relationships are effectively integrated into transition plans, preserving business strengths. Trusted advisors can help outgoing owners understand and support these dynamics.⁴
Strengthen relationships and grow with your EMM clients
As the emerging middle market scales and grows, business becomes more complex and management, technology and financial systems become more important — and the right advisors can make a real difference. Digital-first tools and services, along with innovative capital solutions, support a greater work-life balance and growth aspirations that align with the next generation’s values.
Streamlining implementation of digital solutions in simple, obvious and cost-effective ways can deliver immediate value to these companies, helping them fill gaps in expertise. Ongoing solution support post-implementation aids with troubleshooting to find answers that can easily scale as the business grows.
Providers willing to offer this level of support become invaluable partners to emerging middle market companies, creating collaborative working relationships that grow along with their clients.
Setting your clients up for ongoing success
To best serve your EMM clients — and their succession plans — consider the needs of Millennials by offering products and services that align with their mindset. Investing in the EMM can help drive client loyalty and unlock new opportunities as ownership transfers to the next generation.
- Visa 2024 white paper, Unlocking Potential, Empowering the Emerging Middle Market
- The Markets that Move America
- NCMM Middle Market Indicator June 2025
- Exit Planning Exchange, The Lower Middle Market Opportunity, Retrieved August 28, 2025
Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.