Wealth Building Through Business Ownership: What Buyers and Sellers Can Learn from “Buying a Boring Business”
The Australian Financial Review recently profiled a young business owner couple who, instead of investing in property, chose a different path to wealth building. They acquired a long-running fabrication company from retiring Baby Boomers.
The article highlighted some of the key realities of buying and selling a business, with our CEO Simon Bedard, invited to share his insights on exits, succession, and business ownership. This blog reflects and expands on those highlights, offering practical takeaways for both buyers and sellers.It’s a snapshot of a much bigger shift: more established businesses are coming to market, and prepared buyers and sellers will capture the upside to build personal wealth. The full Australian Financial Review article can be found here:
“Forget property, we bought a ‘boring’ business to get wealthy,” by Michelle Bowes, Australian Financial Review. (AFR subscription may be required to view article.)
A strategy for personal wealth building as a business owner
- Boomer exits are accelerating. Research cited in the article shows many small business owners don’t expect a family succession. A large chunk are planning to sell or close, pushing more established businesses to market.
- “Buying a Boring Business”, as a strategy to build wealth. The young couple targeted a legacy business (aluminium/stainless fabrication) with stable demand and room to modernise. Purchase price: an investment less than a house.
- Reality for personal wealth building. It's hard work owning a business, but the couple doubled down on learning the business and recognised it was a long-term play, now they are tracking for one of the strongest years in its history.
Simon Bedard shares some tips and insights for business ownership
”
There’s a lot of people in corporate land who asked, ‘Is this really what I want for my life or do I want to be more of a master of my own destiny?’
-simon bedard
Simon Bedard, CEO of Exit Advisory Group and National Chair of the Australian Institute of Business Brokers, shared his insights drawing on years of advising business owners:Post-COVID motivations: More professionals are leaving corporate roles and turning to business ownership as a long-term strategy for personal wealth building and independence, with the desire is to invest in “stable but profitable” small businesses.Ownership isn’t 9–5: It can be rewarding, yes. But also, very demanding. New business owners often underestimate the time/energy to truly run and improve a business.Funding can be tricky: Australia’s debt market favours low-risk, property-backed lending. Creative structures (e.g., vendor finance) often help deals over the line.Key person & concentration risks: A small business that relies too heavily on the owner, a handful of clients, or a single supplier carries serious risk. Without diversification, both stability and future revenue are exposed, and long-term value can fall quickly. Both buyers and sellers must be aware of these risks.
What this means for business owner sellers
If you’re a business owner preparing for succession, strong buyer interest and better terms come when your business looks predictable, profitable, and transferable. Here are some practical tips for business owners:
Reduce owner dependency
Document processes, spread client and supplier relationships across the team, and elevate a capable #2 layer. This builds confidence that the business and personal wealth strategy is sustainable beyond you.
Diversify revenue & supply
Avoid heavy reliance on a single customer or supplier. A broader base of revenue streams not only supports business success but also reduces risk and makes the company more attractive to buyers and financiers.
Systemise & evidence performance
Strong accounting, clean financials, and consistent margins are essential. Demonstrating reliable cash flow and measurable KPIs shows the business can deliver long-term value.
Plan early
The best outcomes come from exits planned 12–36 months ahead, not under pressure. Early planning allows you to align business goals, strengthen operations, and build a strategy for maximising wealth at exit.
Seller takeaway: By reducing risk, systemising operations, and creating a clear financial and succession strategy, you’ll attract more buyers, negotiate stronger deal structures, and often exit at a higher multiple, setting you up for long-term wealth management and building personal wealth beyond the business.
Tips for business buyers (including the “boring business” angle) for wealth building
For many aspiring entrepreneurs and professionals leaving corporate roles, acquiring a small business can be a powerful strategy to build both business success and personal wealth. But to get it right, buyers need to look beyond the surface.
Validate the fundamentals
Review 3–5 years of accounting records, check for consistent revenue and cash flow, and ensure finance and operations support long-term sustainability. A healthy track record is the foundation of a profitable acquisition.
Hedge against risk
Understand the big four: structural change, inflated figures, key person risk, and concentration risk. Buyers should diversify across clients and suppliers to reduce dependency and protect long-term business goals.
Be creative with financing
Traditional banks often require large deposits, but deals can be structured with options like vendor finance or alternative lenders. Aligning the right finance strategy with your investment goals helps minimise risk and support growth.
Plan to modernise
“Boring but profitable” companies are often legacy businesses that haven’t fully embraced technology, marketing, or systems. By reinvesting, streamlining operations, and improving customer experience, buyers can improve returns and grow the value of the company. This is the starting point to create business and personal wealth.
Buyer takeaway: With the right due diligence, financing plan, and growth strategy, acquiring a small business can deliver not just steady income, but a long-term path to building personal wealth and achieving financial freedom.
Case in point: From “ordinary” to an outstanding asset
At Exit Advisory Group, we recently worked with a long-established family-owned manufacturing business. While it had strong fundamentals, the owners recognised some areas of risk that could limit future growth and value. It had been operating for decades, but was overly reliant on the founder and a handful of long-term clients.Through our Value360® assessment, we offered support as a trusted adviser to help the owners strengthen the company and prepare for retirement. Initiatives undertaken:
- Documented and delegated processes so the business became a transferable asset, not just a job for the founder.
- Diversified the revenue base by expanding the client mix and reducing overreliance on a small number of accounts.
- Introduced stronger reporting and governance, building trust with potential buyers.
The outcome? Within 18 months, profitability improved, risks were reduced, and the business was positioned as a far more attractive acquisition. When the owners exited, they achieved not only a higher valuation but also the peace of mind that their legacy and employees were in good hands.
Case study takeaway: With the right preparation, even an “ordinary” business can be transformed into a highly attractive asset. This gives sellers confidence for their next chapter, and buyers a reliable foundation for growth.
Practical Checklists
Here are a few high-level things to consider:
seller readiness
- Strengthen management depth to reduce succession risk
- Systemise and document processes and handovers for smoother business and personal transition
- Maintain accurate business finances and clean accounting records
- Diversify revenue streams and clients to minimise risk management concerns
- Align exit with long-term business goals and financial planning
buyer diligence
- Review 3–5 years of personal and business finances to confirm sustainable cash flow
- Analyse profitability, margins, and business success drivers
- Validate client and supplier contracts to ensure long-term security
- Check for owner dependency and put in place a succession or transition plan
- Assess growth potential to maximise your wealth and ensure the acquisition is a profitable asset
Aligning Business Goals with Personal Wealth
The greatest wealth transfer is underway as Baby Boomers retire and exit their businesses. It is reshaping how business owners approach both exits and acquisitions. With proper financial planning, strong succession strategies, and attention to both personal finances and business finances, sellers can protect their legacy while buyers build long-term wealth.Rather than just focusing on the 'deal', it’s about creating sustainable business success, securing financial freedom, and making sure your business is not only a valuable asset but also a key contributor to your personal wealth.With the right wealth management strategies, both sides can achieve peace of mind and turn a transition into an opportunity to maximise wealth for the future.Credit: Thank you to Michelle Bowes and the Australian Financial Review for bringing these realities into focus.Read the original article (AFR subscription may be required).
