To put it short, there has never been a better time in history to buy businesses. In the US alone, there are over 10,000 baby-boomers reaching retirement age every day, and by the year 2030, all 'boomers' will be at least 65 years old. Many of these are small business owners (i.e. revenues between $1m and $10m per annum) that will be looking to sell. This presents a once in a lifetime opportunity to buy healthy, fully operational, and profitable businesses at a significantly lower valuation than they would have had a decade ago. In fact, the stats from 2019 (BizBuySell.com Insight Report) show that of the 2.3 million businesses that were listed in the US that year, only 1 in 12 actually sold. The majority were closed down by the owners due to having no plan for succession. This dynamic is incredible, to say the least!
Just imagine how much value you could add to an already good business by simply improving the marketing, the operations, or adding it to your existing portfolio as a bolt-on to other businesses, creating spill-over value. Many baby boomers did not build their business with the same access to technology ,marketing, or global talent that we have available today, which presents an often straight-forward path to significantly increasing the value of the business. With so much of the hard work and pain of the 'start-up' phase having already been done (building cashflow, and products and services, finding customers, building the brand, etc.), we believe that buying businesses and growing through acquisitions is by far the best way to build long-term, sustainable wealth. And that is what we do ourselves.