High Return, Low Risk and Macro Tailwind
At Wolf Business Services, we see an incredible opportunity in small business acquisitions. As more than 11,000 owners retire daily in the U.S., many small businesses face closure due to a lack of qualified buyers. Large companies get attention from big players, but these small enterprises are often overlooked.
Many owners, especially those over 59, struggle to sell their businesses because they don’t trust buyers to preserve their legacy and care for their employees. This trust gap, along with high financing costs, keeps these businesses trading at attractive multiples of 3-4.5x.
Why Small Businesses are a Smart Investment
Small businesses offer attractive returns with limited risk. The Federal Reserve Bank of Chicago’s Small Business Financial Health Analysis shows a default rate of 1.7%, peaking below 3.5% even during the 2008 financial crisis. By identifying strong companies—those with over $1 million in revenue—we mitigate risks. Competent management, aligned on equity and supported by a strong board, further reduces risk.
Leveraging Government Programs
The SBA program allows companies to be bought with just 10% financing, providing leverage in the smaller market. This benefits business owners by offering higher prices and investors by leveraging their investments with no recourse debt, capped at 20% equity.
Our Commitment to Legacy and Growth
Wolf Business Services aims to fill this gap. We provide business owners with a trustworthy exit strategy, ensuring their companies and employees are well cared for. By maintaining operations, we protect the legacy of the business and foster a positive transition.
As we acquire more companies, we can leverage fixed costs, achieve economies of scale, and access cheaper capital. This approach ensures attractive near-term distributions and offers potential high returns upon exit, often exceeding 100%, with leverage facilitated by government programs.
Join Us in Creating Value
Join us on this journey of creating value, preserving legacies, and building stronger communities through thoughtful and ethical business acquisition. At Wolf Business Services, we’re committed to unlocking the full potential of small businesses, benefiting owners, employees, and investors alike.
For more information on our acquisition strategy and how we can help you, please contact us , just go to the contact page.
Together, we can turn opportunities into lasting success.