Boomer-Owned Businesses Could Be Your Ticket to Massive Wealth in 2025!
Boomer-Owned Businesses Could Be Your Ticket to Massive Wealth in 2025!
The Once-in-a-Generation Opportunity of a Lifetime: Why Investing and Acquiring Small Businesses is the Next Big Thing!
Happy Monday! Inflation is back, the FED acted too soon on their rate cuts, and the melt-up is coming in stocks, crypto, and real estate (hard assets) with the arbitrage for good deals being harder to find. Today, I will give you something to think about that could change all of that. Enjoy the #MacroMonday edition and reach out if you have a solid family-owned business that sells services to “human” customers with no succession plan or exit strategy in the coming 3-5 years.
In a world increasingly captivated by volatile stock markets and the dizzying rise and fall of cryptocurrencies, there’s an overlooked, often contrarian, investment opportunity hiding in plain sight. That opportunity lies not in digital assets or a handful of massive public stocks, but in small (cash-flow generating) businesses owned by a unique and increasingly aging demographic: Americans aged 55 and older.
According to the 2024 Boomer Entrepreneurs Report, more than half of U.S. businesses are owned by individuals in this age group. These seasoned entrepreneurs bring with them years of experience, financial and customer stability, and, most importantly, an impending need for succession or sale. In this context, for savvy investors, a once-in-a-lifetime opportunity presents itself.
The Hidden Potential of Boomer-Owned Small Businesses:
While flashy investments like stocks and crypto grab headlines, the enduring value of small businesses is often overlooked. Here are the key trends shaping this opportunity:
TREND 1. Boomer Entrepreneurs Dominate the U.S. Market
- A staggering 52.3% of U.S. businesses are owned by people 55 and older, with 29.5% owned by those aged 55-64 and another 22.8% by those 65 or older.
- Connecticut leads the pack in boomer entrepreneurship, with Wyoming and the District of Columbia following closely behind.
TREND 2. A Surge in Boomer-Owned Businesses
- The District of Columbia saw an extraordinary 98.8% growth in businesses owned by individuals 55 and older between 2020 and 2021.
- This growth reflects not only the increasing entrepreneurial activity among older Americans but also a trend of resilience through times of economic uncertainty, such as during the pandemic.
TREND 3. Financial and Credit Resources Give Boomers an Edge
- Older Americans often have greater financial resources and better credit, making them more capable of investing in their businesses .
- These factors enable them to build stable, often recession-resistant enterprises—making these businesses ideal acquisition targets for investors seeking stability amid global economic turbulence.
Why Now is the Time to Invest:
With such a significant portion of U.S. businesses owned by older individuals, the need for exit strategies is becoming more urgent. Many boomer entrepreneurs are approaching retirement age, and while 30% prefer family succession, the majority (60%) plan to sell to third parties. For potential buyers and investors, this presents a unique window of opportunity to step in and acquire businesses with a proven track record.
Why this opportunity is so compelling right now:
1. Generational Shift and Succession Gaps
- Many small business owners over 55 do not have succession plans involving their children, as family succession is becoming less common .
- This creates a surplus of successful businesses looking for external buyers, often at attractive valuations for those prepared to step in and continue their legacy.
2. Long-Term Stability and Community Roots
- Boomer-owned businesses are often well-established within their communities, benefiting from local loyalty, established customer bases, and consistent revenue streams.
- Unlike the stock market, where prices can swing wildly based on global news, and cryptocurrencies that are subject to extreme volatility, these businesses offer a grounded and reliable source of cash flow.
3. Tapping into Undervalued Assets
- In many cases, these businesses have untapped potential for modernization and scalability. Investors who can bring digital transformation, e-commerce, or new operational efficiencies into these traditional small businesses stand to generate significant returns.
- This is an area where experienced GenX and millennial-led investment firms and individuals, with their tech-savvy approach, could combine forces with the experience of boomer entrepreneurs to create exponential growth. This is where I am betting BIG with ATOMIQ Growth Advisors and ATOMIQ Capital’s new fund.
The Contrarian Investor’s Path
Contrarian investing often involves seeking out opportunities that the mainstream overlooks or undervalues. Right now, while many eyes are glued to the turbulence in traditional markets and the crypto sphere, small businesses owned by boomers represent a hidden gem.
Here’s how savvy investors can take advantage of this once-in-a-generation opportunity:
1. Acquisitions Over Stocks: Instead of betting on overvalued or volatile stocks, look to acquire or invest in stable, cash-flow-generating small businesses that need succession solutions. These businesses are often deeply undervalued compared to the earnings multiples seen in larger corporations.
2. Strategic Partnerships: Create joint ventures with boomer entrepreneurs to modernize and scale their businesses. With access to the right resources, these businesses can evolve and grow, yielding outsized returns for those willing to innovate.
3. Local Investment Opportunities: Focus on regions like Connecticut, Wyoming, and the District of Columbia, where boomer-owned businesses are booming. These regions present high-growth potential, especially in sectors that cater to local economies and underserved markets.
Take Action
In a world dominated by speculative investments in digital assets and overvalued stock markets, it may make sense to have a portion of your allocation into an acquisition strategy for boomer-owned small businesses. They present a stable, profitable, and highly accessible alternative to cash flows that could add to your war chest for “risk-on” and hard asset accumulation. For those with the foresight to recognize this once-in-a-generation opportunity, the potential for strong, long-term returns is enormous.
As more baby boomers approach retirement, the number of business owners seeking exit strategies will only increase. This shift creates a favorable environment for investors who are ready to step in, take over, and profit from the wealth of opportunities hidden in plain sight. The time to act is now.
Thinking of selling your business in the coming years? If you are interested in discussing how you could work with me and my team at ATOMIQ to put your boomer-owned small business on a future-proofed growth path for us to then acquire on a 2 to 5-year seller-financed trajectory at healthy multiples, email my team at acquiredby@chrisjsnook.com and we will take a look at your life’s work and assess the potential fit of adding you to our portfolio or forthcoming acquisition fund.
Introducing…
ATOMIQ CAPITAL: Generating Incremental Alpha with Human-Driven Businesses that Embrace Customer Experience while Harnessing Exponential Technology.
ATOMIQ’s new “boomer-business acquisitions” arm is focused on generating incremental alpha by acquiring and scaling small businesses that provide essential human-driven services. Incremental alpha, in this context, refers to the excess returns we generate above expected benchmarks through strategic operational improvements and process efficiencies—not simply by taking on more risk. These additional returns are achieved by applying a unique blend of exponential technologies, such as AI and blockchain, to streamline operations, expand margins, and enhance decision-making within the businesses we acquire.
Our approach focuses on the fundamentals of business longevity, targeting companies that people will continue to need and consume long after the current hype around AI and Web3 has settled. By leveraging cutting-edge technology under the hood, we drive both immediate efficiency and long-term value in ways traditional acquisitions overlook. Whether through automating repetitive processes, enhancing customer experiences with AI, or using blockchain to create transparent supply chains, these innovations help us create sustainable competitive advantages.
Unlike many acquisitions driven by cost-cutting or external market forces, ATOMIQ’s acquisition team focuses on process improvement and margin expansion. This creates real, lasting value for the businesses in our portfolio, while maintaining the uniquely rich and “human” relationship these small businesses have with their enduring customers, ensuring they remain profitable, delivering returns to our investors well beyond traditional benchmarks.
Business Brokers can contact me directly at cjs@atomiqcapital.com
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