A vast majority of small-to-medium enterprises are priced at valuations their market will not support. This market failure means 8 or 9 out of 10 of these businesses never get sold, trapping their owners—often Baby Boomers—into working long past their desired retirement age.

At 18, Alex Marechniak acquired his first business with minimal capital by negotiating an "earn out" with the sellers. This seller-financing structure allowed him to pay for the business using a percentage of its future revenue, proving lack of capital isn't a barrier to ownership.

Historically, businesses were passed to apprentices who learned the trade over years. With this model gone, millions of retiring baby boomer business owners have no clear successors. This "apprenticeship gap" creates a massive opportunity for entrepreneurs to acquire established, profitable businesses.

The market for buying and selling small businesses is currently opaque and inaccessible to the average person. In the future, these businesses will become more commoditized and tradable, much like how real estate investing and flipping have been democratized over time.

Over 90% of the U.S. middle market, the world's third-largest economy, consists of non-sponsored (family-owned) companies. As these businesses seek long-term capital for structural changes, they represent a massive, underserved growth frontier for direct lenders beyond the competitive private equity-sponsored space.

Aspiring business owners can overcome capital constraints by negotiating seller-financed deals. The original owner effectively loans the buyer the purchase price, often in exchange for a share of future profits, making acquisitions more accessible to individuals.

Banks started in the 80s and 90s are led by founders nearing retirement. With no new generation of talent eager to run small, three-branch banks, these institutions are increasingly looking for an exit. This succession problem is a primary driver of M&A activity in the sector.

Small RV parks, often owned by retiring baby boomers with no online presence, are highly profitable assets. You can acquire them with minimal capital by negotiating seller financing, where the owner holds the note. This allows you to use profits from improving the business to pay for the asset itself.

The anticipated flood of businesses for sale from retiring baby boomers—the "silver tsunami"—has not materialized as predicted. Owners are holding on longer while the pool of buyers has increased, causing demand to outstrip supply and keeping acquisition multiples high.