16 YEARS OF ILLINOIS OWNERSHIP DRAIN · 2010–2026
0.0%

of Illinois businesses that sell are acquired by out-of-state buyers.

94.8% of disclosed deal value. 3,827 tracked acquisitions with disclosed buyers over 16 years.

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SECTION 01 · THE FLOW

Where Illinois's businesses go.

Every dot is an out-of-state acquirer of an Illinois company. The money runs to New York, California, and Texas.

OUT-OF-STATE ACQUIRER DESTINATIONS
ORIGIN (IL)
OUT-OF-STATE DESTINATION
SHADE & DOT SIZE SCALE WITH DEAL COUNT
TOP 10 DESTINATION STATES
  1. 01New York
    373
  2. 02California
    321
  3. 03Texas
    237
  4. 04Florida
    160
  5. 05Massachusetts
    135
  6. 06Pennsylvania
    122
  7. 07Ohio
    120
  8. 08North Carolina
    89
  9. 09Wisconsin
    88
  10. 10Minnesota
    87
INTERNATIONAL · 394 DEALS

394 Illinois businesses were acquired by foreign buyers.

Canada
103
United Kingdom
79
France
21
Ireland
20
Switzerland
16
India
16
SECTION 02 · PERSISTENCE

This isn't a trend. It's tightening.

Out-of-state acquisition has held near four in five for sixteen years. The last four full years averaged 82.7% against a long-run average of 79.3%. 2024 was the highest on record.

ANNUAL IL DEAL VOLUME & OUT-OF-STATE SHARE

2026 IS PARTIAL: JANUARY THROUGH JULY 1.

BARS: TRACKED DEAL VOLUME. LINE: % ACQUIRED BY OUT-OF-STATE BUYER. BAND: 75–83% REFERENCE RANGE. DASHED LINE: 16-YEAR AVERAGE (79.3%).

SECTION 03 · SECTOR LEAKAGE

Which Illinois industries leave.

Consumer products, distribution, chemicals, and software lead the drain. The only sectors that hold are the ones Illinois consolidators are rolling up themselves.

OUT-OF-STATE ACQUISITION RATE BY SECTOR
  1. Consumer Products
    89%n=96
  2. Distribution
    86%n=146
  3. Chemicals
    86%n=64
  4. Software
    85%n=229
  5. Information Technology
    83%n=296
  6. Internet Software and Services
    83%n=229
  7. Manufacturing
    82%n=194
  8. Healthcare Services
    81%n=176
  9. Business Services
    79%n=406
  10. Food
    74%n=124
  11. Financial Services
    64%n=132
  12. Insurance
    58%n=204
0%50%100%
SECTION 04 · THE REGIONAL CUT

There is no bubble.

Harbor's Virginia analysis found a Beltway buffer: Northern Virginia keeps a quarter of its deals in-state. Illinois has no equivalent. Chicagoland hosts one of the largest private-equity communities in America and still exports four of every five deals, the same as everywhere else.

ILLINOIS BY REGION · OUT-OF-STATE ACQUISITION RATE
SHARE OF ACQUISITIONS GOING OUT OF STATE
71%82%
CENTRAL ILLINOIS
n=188
71.3%
METRO EAST & SOUTHERN
n=78
79.5%
CHICAGO
n=1,350
79.8%
SUBURBAN CHICAGO
n=1,950
80.0%
NORTHERN ILLINOIS
n=145
82.1%

REGIONS ARE ASSIGNED BY TARGET ZIP CODE; MAP ZONES ARE APPROXIMATE COUNTY GROUPINGS (SUBURBAN COOK COUNTY IS SHOWN WITH CHICAGO ON THE MAP ONLY). 116 OF 3,827 TRANSACTIONS COULD NOT BE ASSIGNED A REGION. COLOR REFLECTS RATE, NOT DEAL VOLUME.

SPOTLIGHT · CHICAGO

In the city of Chicago itself, 79.8% of 1,350 tracked acquisitions left the state.

THE BUYERS' HOMETOWN
SECTION 05 · THE MECHANISM

How it happens. The roll-up.

68.9% of all deals are add-on acquisitions: Illinois companies absorbed into someone else's platform.

TRANSACTION TYPE COMPOSITION
ADD-ON ACQUISITION
68.9%
2,638 DEALS
DIVESTITURE
11.6%
445 DEALS
BUYOUT (LBO, MBO, MBI)
10.6%
404 DEALS
SECONDARY BUYOUT
7.1%
273 DEALS
CONSOLIDATION
1.3%
48 DEALS
SPECIAL SITUATIONS/DISTRESSED
0.5%
19 DEALS
SECTION 06 · THE CONSOLIDATORS

Who's buying Illinois.

The most acquisitive buyers are homegrown. It hasn't stemmed the flow. The eleven busiest buyers combined account for 3.9% of tracked deals. The rest is a scattered field of one-off acquirers, and it is overwhelmingly out-of-state.

8 OF THE 11 MOST ACQUISITIVE BUYERS ARE HEADQUARTERED IN ILLINOIS. COMBINED SHARE OF ALL TRACKED DEALS: 3.9%.

ILLINOIS-BASED
Gallagher
ILLINOIS
37
ILLINOIS-BASED
HUB International
ILLINOIS
20
OUT-OF-STATE
AssuredPartners
FLORIDA
13
ILLINOIS-BASED
LRS
ILLINOIS
12
ILLINOIS-BASED
Illinois American Water Co.
ILLINOIS
11
OUT-OF-STATE
H.I.G. Private Equity (PE)
FLORIDA
11
OUT-OF-STATE
Audax Private Equity (PE)
MASSACHUSETTS
10
ILLINOIS-BASED
First Midwest Bank
ILLINOIS
10
ILLINOIS-BASED
PremiStar
ILLINOIS
9
ILLINOIS-BASED
GTCR (PE)
ILLINOIS
9
ILLINOIS-BASED
Relation Insurance
ILLINOIS
9
THE ALTERNATIVE

Harbor holds operating businesses in-state and permanently. No fund clock. No exit timeline. No out-of-state extraction.

Harbor built this model in Virginia, where the drain runs at 77.6% of 2,757 tracked acquisitions. Illinois runs deeper: 79.4% of 3,827 tracked acquisitions since 2010 went to out-of-state buyers, along with 94.8% of the disclosed deal value. The playbook that keeps ownership local is proven. 

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ILLINOIS BUSINESSES IN ILLINOIS HANDS.