Since I founded Distant Horizon in 1999 we have worked with over 700 Midwestern companies, building an incredible rolodex of businesses and operations professionals across all industries. We have noticed a problem looming in the American economy due to what I would call the "Three Black Swan Punch" of the 9/11 attacks, the 2008 Financial Crisis and the Coronvirus pandemic. There is a 20 year (and counting) effect on the financial position and retirement prospects of three connected generations: The Baby Boomers, The Generation X'ers and the Millennials.
In order for a business succession to occur, a business owner has to have an appropriate exit to retirement and a business needs management and financial continuity. I would argue that a great number of really good American businesses have, and are continuing to be liquidated, sold for a fraction of their real entact value or allowed to fritter away to nothing as its owners hit, 65, 70, 75 years old. Why does this happen? Because in order for their to be a real succession, someone either needs a next generation in their own family to continue it, or someone who has both the MONEY to buy it and the SKILLS to run it. Herein lies the problem. I have seen time and time again - there are people that have the money to buy a business, but they may not have the ability to find that business in the first place; the skills or even the desire to run the business; and certainly not a timeframe that would allow one to consider such a complicated venture.
The obvious generation to take over Baby Boomer-owned businesses is Generation X, but alas! that is the age group that had just bought their first house and started having children when 9/11 and the 2008 Financial Crisis put many of them into beans and rice situations -- with measureable percentages of that generation experiencing foreclosure or business failures during their 20's, 30's and 40's. You have a lot of these folks, like myself, that never got "rich" per se, but they do have a lot of experience and a lot of character - both of which are very handy when running a business.
Our concept, acting as a fundless sponsor, is to:
Whether you have a business that you think is a good acquisition target, or if you are an investor seeking to participate in the acquisitions, please fill out this form and we will follow up with you.