I’m often asked about the @adventur_es addressable market ($1-10M in earnings). Impossible to know exactly, but here are some rough stats.
https://pbs.twimg.com/media/C2YXCSuWQAIMXb7.jpg:large
Last year, the IRS received about 32M non-farm business tax returns. ~30% are shell entities.
Means there are around 22M active businesses in the US, but some are duplicate branches.
Here’s the breakdown by employment.
10,000 Baby Boomers turn 65 years of age each day. 9M companies remain in the hands of baby boomer owners who founded them.
4M businesses will change hands over the next 20 years as baby boomers retire. 75% are without an exit plan.
Amount of capital required to close all those transactions is over $10T. Currently ~$535B in funds available (“private equity overhang”).
~810,000 US companies have >$5M in revenue and ~510,000 >50 employees. This is the realistic @adventur_es universe of opportunity.
Plus around 7,700 LMM companies are PE-owned and will also become available.
With ~34% of businesses in the lower-middle market open to acquisition, we @adventur_es think the pond is plenty deep.