In recent months, you’ve probably heard a lot about the wave of change that AI is bringing—how it will transform everything. But what if there’s another, lesser-known transition out there, filled with opportunities and with far less uncertainty?

While AI is fascinating but uncertain and even threatening, there’s another opportunity that is quite the opposite: secure, predictable businesses with great potential for those seeking to build a stable and fulfilling life.

In the next five years, 12 million small and medium-sized businesses (SMBs) are expected to change hands in the United States alone.

We are witnessing the largest transfer of business wealth in our era, driven by the mass retirement of baby boomers. This generation, which built and maintained millions of businesses for decades, is now retiring without successors to continue running those businesses. It’s a historic moment, and our focus is on the U.S. market, where an unprecedented opportunity presents itself.

Baby Boomers and the Changing Ownership Landscape

Many business owners who have operated profitably for years are facing a difficult situation: their children and heirs are not interested in continuing the business. They prefer different paths, often linked to technology or modern entrepreneurship. This creates an unprecedented situation where an entire generation is stepping aside, leaving behind a significant number of profitable businesses ready for acquisition.

Robert and Marcela's Case: An Identifiable and Viable Story

Meet Robert, the owner of an industrial supply store in Florida.

For 35 years, Robert built a solid business, supplying contractors and small local companies with quality materials. His store became a community staple, known for its great service and reliable products. Robert achieved annual revenue of $1.5 million, with a 20% profit margin, ensuring steady income and a loyal customer base. However, as he began thinking about the future, he realized that his children didn’t want to follow in his footsteps. Liquidating the business would be too costly, and selling it became the logical choice.

Then came Marcela. She and her partner saw an incredible opportunity in Robert's business. They bought the store for $1.2 million, based on a 4x EBITDA multiple. At the time of purchase, the business had an EBITDA of $300,000. The transaction was financed through an SBA loan covering 80% of the value, with the remaining 20% split between buyer equity and a small seller finance component.

After the acquisition, Marcela and her partner modernized the operational processes, enhanced branding, optimized logistics, and improved the business's visibility. They implemented improvements like a digital inventory system, online marketing campaigns to attract new clients, and renegotiated with some suppliers to improve purchasing margins. As a result, the EBITDA margin of the business improved from 20% to 28%, significantly boosting profitability.

In terms of profit, the business now generates approximately $420,000 annually, which is a considerable increase compared to when it was bought. The available cash flow has also improved, allowing the business to not only pay off the SBA loan but also reinvest in growth and other personal projects for Marcela and her partner.

One of the major advantages was that Robert's business already had a highly experienced general manager, allowing Marcela and her partner to operate the store with minimal involvement.

Together, they dedicate no more than 20 hours a week to managing the business, which has drastically improved their quality of life. Before acquiring the business, both worked in corporate roles, clocking in more than 50 hours per week and dealing with immense stress.

Today, Marcela and her partner have more time to enjoy than ever.

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