We are a group that helps deploy capital into high return commercial real estate and niche service businesses that generate monthly cash flow. We source high quality operators who are in need of partners to investment in businesses. 

We are looking for those that are looking to the future in establishing their financial freedom, and looking for investments that provide great monthly cashflow.

We see a coming opportunity with the largest generation entering retirement and the fact that they represent 51% of small business. This presents a once in a life time opportunity for those who know how to capture it. We have found a way to take advantage and share that with others. 

The greatest challenge of taking advantage is competeing with Wall Street and Private Equity. They are entering into markets they have historically stayed out of (think Arrived with single family homes). We are dedicated to staying ahead to find niche opportunities that are out of their reach. We find the barriers by finding niche opportunities that cannot be homogenized into bulk funds. This is where higher returns are still to be found. 

Examples of these barriers show in business such as full service or self serve car washes, landromats, self storage, flex warehouse, and specialty service business. We have found these models to provide cash flow from day one, and are prohibative to PE and Wall Street Funds. We specialize in pairing investors with quality oporators. The operator gets capital to purchase existing business, and investors get cash flow, it's a win win!

We do not accept all deals, the numbers have to work for our investors. We vet deals to ensure they meet minimum cash flow requirements and the operator shows competency. 

• The retiring generation make up 21% of the U.S. population but own a disproportionately high 50.9% of small businesses in the U.S.
• Many boomers are approaching retirement age and may be looking to sell their businesses to exit the market or pursue other interests. A 2016 survey of small businesses in the U.S. indicated that 72% of small business owners don’t have an exit plan and 54% intend to leave in 10 years
• This creates an opportunity for entrepreneurs who want to buy an existing business rather than start a new one. Buying a boomer business can have many advantages, such as inheriting an established brand, customer base, workforce, and assets, as well as having access to financing and innovation opportunities
• According to the Benner Cycle, a chart that predicts asset price fluctuations based on historical patterns, 2023 is a buyer’s market and 2026 is a good time to sell. This means that entrepreneurs who buy boomer businesses now can benefit from lower prices and higher returns in the future.
• Boomers who retire may also want to give back to the community by mentoring, investing, or supporting young entrepreneurs who take over their businesses. This can create a positive impact on the local economy and society, as well as transfer valuable knowledge and skills to the next generation of business owners.

While businesses that show a steady return can have less difficulty finding a capable suitor without having to accommodate for the high cost of capital, turbulent businesses will likely have to make concessions. Offering to finance a portion of the deal may be their best bet without having to reduce asking price.

Yet only 27% of surveyed owners say they are willing to offer seller financing, while 45% will not and 28% are unsure. In contrast, 30% of buyers say seller financing is very important in their purchase consideration, an additional 26% saying it's extremely important.

"The market is balanced for strong cash flowing businesses. However, due to the higher interest rates, there is more pressure on smaller businesses that are not generating as much cash flow. The smaller the business, the more the scale tips to a buyer's market," says Jason Ward, CEO of TruView Business Advisors.

This disconnect, or stubbornness, in expectations of terms between buyers and sellers is creating additional complexities in an already complex market.

"Currently, getting businesses listed isn't the issue, it seems that buyers are too expectant of ‘terms' or owner financing options vs. ‘cash' purchases. Having said that, sellers not willing to do creative financing options and buyers not having, or not willing to look at other alternatives, seems to be a trend I personally have seen," said Marcus Inman of First Choice Business Brokers.

As such, it's of little surprise that 43% of business brokers consider now to be a buyer's market compared to 20% who believe sellers have the upper hand. Twenty-seven percent (27%) see a balanced market with the remaining 9% unsure.

Over the past year, the business-for-sale market has been on a rollercoaster of uncertainty. Between rate hikes and inflation, including the costs of goods and wage growth, not to mention the looming threat of a recession, owners have been fighting to maintain cash flow. At the same time, buyers looking to enter Main Street are facing rising acquisition costs and challenges trying to finance a deal.

Fast-forward to 2024 as inflation inches closer toward the Federal Reserve's 2% target, the hope of a soft landing seems more promising. Demand for labor is still strong and consumer spending is steady, reducing the likelihood of a recession, while signs of potential rate cuts are beginning to offer a little more optimism to those in the market.

However, little has been normal about the post-pandemic economy and interest rates will likely remain high through the first half of 2024. Still, many business owners remain hopeful, with certain sectors benefitting more than others.

Michael Taback, who operates a business in California, explains, "I am cautiously optimistic that the spending public will tire of their own austerity measures. Things will only change when we see interest rates and notice inflation starting to come down. This will help the general public to spend our way into a more vibrant economy."

The presidential election adds yet another layer of uncertainty in terms of spending, taxation and other policies. In fact, among business brokers, the election outcome is their third highest concern (16%), only behind risk of recession (26%), and interest rates (32%).

To read the fll report, visit BizBuySell Insight Report - Market Trends