MB503: Why We’re Buying Businesses Now (And You Should Consider It Too)

Show Notes

Real estate will always be the foundation—but what if you could scale your wealth faster by buying existing businesses?

In this episode, I sit down with Jay Bourgana, a turnaround expert and operator who’s done $350M in real estate and now focuses on acquiring profitable small businesses. We unpack how syndicators and experienced operators can apply what they already know—team-building, systems, scale—to the world of business acquisitions. This isn’t about buying a laundromat. It’s about building a portfolio of cash-flowing companies the same way we build multifamily portfolios.

If you're curious about what's next after apartments—or how to supercharge your equity returns—this episode is a must-listen.

Key Takeaways

Why Operators Are Pivoting into Business Acquisition

You can buy small businesses for 2–4X EBITDA, and sell them later for 8–10X+.
Strong operators are using syndication models to scale businesses—just like multifamily.
Ideal fit for folks with an ops background or those already running real estate companies.

How Business Buying Compares to Real Estate Investing

Buying at a 26%+ cap rate compared to 5–6% in multifamily.
Same ability to use leverage—but more flexibility with seller financing and SBA loans.
Big difference? Real businesses need talent acquisition more than property managers.

What to Look for in a Business Acquisition

$3–10M in revenue with $1–2M EBITDA is the sweet spot.
Look for companies with good brands, recurring revenue, and retiring owners.
Red flags include messy books, no second-in-command, or an owner doing everything.

How to Avoid Getting Trapped in the Business

Step in as operator for 3–6 months—then hire or promote the GM.
Build systems for recruiting, customer retention, and financial controls.
Success depends on culture + people, just like in multifamily.

Why This Is Still a Team Sport

Use private equity-style rollups to scale—buy a platform company, then bolt on others.
Build teams in the holding company or lean on operators in the acquired businesses.
You can be remote if the systems and team are strong—but local helps early on.