78% of Boomer-owned businesses are profitable.
But 1 in 3 owners can’t find a buyer.
These aren’t failing businesses. They’re businesses with no one to take the wheel.
That’s your opening.
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SBA Loan Defaults just hit $1.6 billion - a 3x higher rate than in 2021.
Not everything is sunshine and roses in ETA and buying small businesses.
90% leverage at 11% interest is not the smartest way to own a business.
As the Bible says “the debtor becomes slave to the lender”
SBA Loan Defaults just hit $1.6 billion - a 3x higher rate than in 2021.
Not everything is sunshine and roses in ETA and buying small businesses.
90% leverage at 11% interest is not the smartest way to own a business.
As the Bible says “the debtor becomes slave to the lender”
Hear me out…
SBA-like acquisition loans but with no personal guarantee (like corporate debt).
Conditions:
✅ Higher interest than PG SBA
✅ Equity control and position for distressed situations and upside
✅ Bad boy clause that PG hits if owner is doing something fraudulent
Some interesting rental businesses for sale:
1. Stroller / scooter rental in vacation location ($300k EBITDA)
2. Generator rental for construction sites ($1.5M EBITDA)
3. Wedding party rentals, chairs, tents ($500k EBITDA)
So many cool ways to make $$$
Hot take: most people wanting to buy a business, should NOT.
It is not a shortcut to success for the unprepared. It often takes years of gaining business management and leadership skills to pull this off.
Don’t rush into it and take on potentially millions in debt.
@dealflow_guy It’s so easy though. You just bring little to no money down, leverage the business to 90% and hire a GM (on the cheap) to do all the hard work!!
What could go wrong? ��
What the business acquisition gurus don’t tell you… shhh
🤫 There is no such thing as passive investments into a small business
🤫Taking on SBA debt is not something to be taken lightly. Your personal guarantee means defaulting can decimate you financially and take everything
@benkellyone I would add:
✅ Been in business for 10+ years?
✅ Do I have any expertise or interest in this field?
✅ Does the cash flow compensate for the stress of owning this business?
@BoringBiz_ Praised for the 1st year for growing EBITDA, decline begins, and investors end up with a goose egg in 3-5 yrs. Not all MBAs should be operators…