Stable Returns

Eliminating risk from the prospect of starting a business would be nice, but it’s unfortunately not possible – starting a business is a journey that always involves risks and rewards. The question then becomes how to minimize risk while maximizing returns.

An online search will bring up a number of tools from respected business websites that you can use to run a risk-reward analysis, but you’ll likely find that a social acquisition by nature is a lower-risk, higher-return way to by a business, as it:

• Meets the needs of an expanding group of businesses. 6 of 10 business owners will be considering retirement by 2040 and can’t rely on their adult children to take over operations. Yet communities rely on the services these businesses provide. Social acquisition provides a way to ensure that good work goes on and that legacies are preserved.
• Meets the needs of an expanding group of charities. As the world changes and people have less disposable income to donate to causes, social acquisition provides charities a way to both generate and do good in their communities and beyond.
• Bypasses the question of whether the interested buyer can wait up to five years to break even. Businesses acquired through social acquisition are already at the break even point and have cash flow and the client base required to maintain it. The potential buyer only needs to do due diligence to verify that that all the elements required to keep cash flow sustainable are present.