Owning a Business Is a Good Investment

Last week I received a call from a prospective buyer asking for more information on a business we are marketing. I asked him if he was going to work in the business, or use a manager to run it for him. He said he was going to use a manager and that his goal was to buy several businesses. He wants to learn each business but act as a general manager.

I asked him how he intended on financing these acquisitions. He stated he was going to use his personal savings that was earmarked for retirement. His retirement account had lost value and his strategy was to buy several profitable businesses that would yield a greater return than the investment market he was using.

I told the prospect that he was not the only person I had talked with that wanted to use this strategy. It makes sense to me that a business that yields even a 5% return is more than I am currently enjoying while invested in the market. And, these businesses have good potential for growth. Then, when retirement time comes, the owner can sell his businesses and enjoy the additional cash from the sale.