Learn · 1 of 6

You've probably heard the pitch

As heard online

The Silver Tsunami

As heard online

More sellers than buyers

As heard online

AI is coming for your job

As heard online

Buy at 3x = 33% return

  • Welcome to the search. You've probably heard some big media personalities talk about the silver tsunami.
  • It goes something like this: more owners are retiring than there are buyers. Too much supply, not enough demand. Now is the time to go find a business to buy.
  • AI is taking all the jobs, so this is where you need to be.
  • And businesses can be bought at a 3x multiple, which is a 33% unlevered return you can't get anywhere else.

Questions this unit answers

Is the silver tsunami real?
Yes. A large wave of small-business owners is retiring and many of their businesses will change hands or close. The catch is that a lot of those businesses cannot really be bought, because the owner is the business: their name, relationships and three or four jobs hold it together.
Does buying a business at 3x really return 33%?
The arithmetic is right, but it is before you are paid for running the business and before the bank is paid. Once you take a salary and make the loan payments, what is left is a return on the cash you put in, which can still be strong if the earnings are real.
Who is Search 101 for?
Self-funded searchers: people buying a small business with their own cash plus an SBA or conventional loan. Most of it applies to funded searchers too.