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Why Is Small Business Acquisition Booming?

6/25/2024

Helen Guo Founder of SMB Deal Hunter
Started and sold a $30M+ business. I now buy businesses and teach aspiring entrepreneurs how to do the same.

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The stats are in:

10,000 baby boomers are retiring every day, and 8-10% of them own a small business.But the reality is, many of these baby boomers have no kids or grandkids to take over their businesses.As a result, there are over 2 million businesses for sale right now.And the thing is…

Many of these businesses are already successful and profitable.

They’ve found product market fit, have existing customers, employees, vendors and suppliers (and sometimes even management in place).That’s why savvy entrepreneurs (myself included) are getting in on the largest generational transfer of wealth in history.Many of these businesses have stood the test of time, humming along for 10, 20, and sometimes even 30 years.In fact, I just acquired a roofing business in North Texas that’s been around for 80 years.

If these businesses don’t change hands, this could be catastrophic to the American economy.

Small businesses are the lifeblood of the American economy, making up 99% of the economy more than half of private sector jobs.It is critical that these businesses transfer hands to the next generation of owners, which is why the Small Business Administration is offering financing to help aspiring business owners buy these businesses through the 7(a) program.Through an SBA 7(a) loan, you can finance 90% of an acquisition up to $5 million, so you can put just 10% down (sometimes even less).Meaning…

You don’t need to be a millionaire to buy a business.

And in fact, you can buy a business where even after debt servicing you’ll still make more than a high-paying 9-5 salary, creating a lower-risk path to getting into entrepreneurship than starting a business from zero.That’s why I truly believe this is the wealth-generating opportunity of the DECADE.

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"SMB Deal Hunter is a must-read for anyone looking to acquire or invest in small businesses."
-Andrew Gazecki
Founder & CEO of Acquire.com