The Bay Area is known for its sexy businesses: Silicon Valley tech giants like Apple, Google, Meta, Amazon, Oracle, and Intel. And there’s no doubt that these companies have generated tens of thousands of jobs, thousands of millionaires, and plenty of economic activity for our region.
But the nine counties, Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma make up the Bay Area are also home to a huge number of diverse businesses that generate jobs and wealth for residents as well. You just don’t necessarily know their names.
Technology and AI are what make headlines. But quietly, corporate refugees from these industries and newcomers to the area are seeking out “boring” businesses to buy, and for good reason. LendingTree.com estimates that nearly half of all privately held companies are owned by individuals aged 55 and above. If those numbers hold true for our region, as many as 400,000 of our local business owners will be considering retirement over the next few years. That presents plenty of opportunity for those who are ready to diversify their income and business portfolios.
Even if you hold a great tech job, your future may feel very uncertain. You never know when the next killer app is coming for your role – or your whole industry. The rapid expansion of AI capabilities and use makes predicting the future impossible.
Savvy workers, corporate retirees, and immigrants are looking for small to mid-size companies that are service-based and that generate plenty of recurring revenue. Paving and striping companies, roofing, trades like plumbing and HVAC, even window washing businesses, are seeing a lot of interest from people who are looking for predictable and proven profitability.
These buyers are educated and understand that they can implement operational and technical improvements, which will increase profitability and growth potential. They know that AI will never replace these companies – technology will improve the products, machinery, and the back office, but somebody still has to operate the asphalt paver or paint machine, pour concrete, or climb up on the roof to install shingles. Those services, though not as glamorous as technology, will be needed as long as we have buildings, homes, streets, and parking lots.
Cody Sanchez, author of the bestselling book Main Street Millionaire: How to Make Extraordinary Wealth by Buying Ordinary Businesses, says most people look for wealth in all the wrong places. Instead of risking it all with little chance of success, she shows people how to acquire cash-flowing businesses that are winning right now, unsexy but reliably profitable industries — such as plumbing, construction, cleaning, and electrical services — that white-collar workers have traditionally overlooked.
Your company might be just the right fit for someone who’s looking to build real wealth by acquiring a proven source of revenue. My recent experience has been that these “boring” companies are selling for an average of 95% of their asking price, and most get at least one qualified offer within 60 days.
If you want to learn what your company is worth, I offer a complimentary and confidential opinion of value. Click here.