This man sold his thriving business for $0. It ran at a 30% profit...
Codie Sanchez@Codie_Sanchez
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Dec 02, 2024
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This man sold his thriving business for $0.
It ran at a 30% profit margin.
The sale included 17 employees, all the equipment, and nearly 150 acres of land.
Here’s why he gave it all away for free (Japan's Ownership Crisis):
It ran at a 30% profit margin.
The sale included 17 employees, all the equipment, and nearly 150 acres of land.
Here’s why he gave it all away for free (Japan's Ownership Crisis):
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Hidekazu Yokoyama was 73 years old.
Last year, WSJ reported on his logistics business in the remote north of Japan.
The region supplies most of Japan’s dairy, and all the farming businesses in the area rely on Mr. Yokoyama’s services.
But there was a huge problem.
Last year, WSJ reported on his logistics business in the remote north of Japan.
The region supplies most of Japan’s dairy, and all the farming businesses in the area rely on Mr. Yokoyama’s services.
But there was a huge problem.
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Selling your business isn’t common in Japanese culture.
You pass your business over to a family member or a trusted employee.
Not a stranger. Certainly not a competitor.
But ideal successors are few & far between in Japan today:
You pass your business over to a family member or a trusted employee.
Not a stranger. Certainly not a competitor.
But ideal successors are few & far between in Japan today:
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The country is facing a unique problem that’s all coming to a head:
- Median age of citizens is 60 years old
- Young people aren’t getting married
- Fertility rate at all time low
- Median age of citizens is 60 years old
- Young people aren’t getting married
- Fertility rate at all time low
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So Mr. Yokoyama was stuck…
- At 73, he knew he couldn’t run the business for much longer
- But his kids didn’t want to run it
- Neither did his employees
To help bridge the gap for owners like him, buyer-seller matching programs have become common in Japan…
- At 73, he knew he couldn’t run the business for much longer
- But his kids didn’t want to run it
- Neither did his employees
To help bridge the gap for owners like him, buyer-seller matching programs have become common in Japan…
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In 2021, those matching programs found buyers for 2,413 businesses.
Impressive.
Until you realize 44,000 businesses still shut down.
And 55% of them were still profitable when they closed.
Impressive.
Until you realize 44,000 businesses still shut down.
And 55% of them were still profitable when they closed.
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Mr. Yokoyama struggled to find a buyer...
The business was located on a snowy northern island with a declining economy.
Most young people were moving to cities. The town’s residents (& the business’s employees) were all in their 50s or older.
So, he did something bold…
The business was located on a snowy northern island with a declining economy.
Most young people were moving to cities. The town’s residents (& the business’s employees) were all in their 50s or older.
So, he did something bold…
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He listed his business for zero yen.
But there was still a cost…
- Move to a frozen, remote town in Japan
- With a slowly shrinking economy
- Learn a brand new business
- Be young & willing to work
He found a taker.
But there was still a cost…
- Move to a frozen, remote town in Japan
- With a slowly shrinking economy
- Learn a brand new business
- Be young & willing to work
He found a taker.
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By 2025, Japan will have 2.5 MILLION businesses owned by people in their 70s.
Many of them have NO succession plan.
It's a demographic time bomb ticking away at the heart of Japan's economy.
The potential fallout?
Many of them have NO succession plan.
It's a demographic time bomb ticking away at the heart of Japan's economy.
The potential fallout?
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It's not pretty:
- 620,000 businesses closed
- 6.5 million jobs lost
- $166 billion wiped from the economy
- Generations of craftsmanship and culture... gone
And it’s happening before our eyes.
- 620,000 businesses closed
- 6.5 million jobs lost
- $166 billion wiped from the economy
- Generations of craftsmanship and culture... gone
And it’s happening before our eyes.
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Japan isn't alone.
America is falling toward the same cliff.
By 2030, all Baby Boomers will be 65+. That's 10,000 people hitting retirement age DAILY.
And many of them are business owners with no succession plan.
America is falling toward the same cliff.
By 2030, all Baby Boomers will be 65+. That's 10,000 people hitting retirement age DAILY.
And many of them are business owners with no succession plan.
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The numbers are staggering:
- 12 million boomer-owned businesses
- Worth $10 Trillion collectively
- Employing 85 million people
Sound familiar? It should. It's Japan's crisis on steroids.
- 12 million boomer-owned businesses
- Worth $10 Trillion collectively
- Employing 85 million people
Sound familiar? It should. It's Japan's crisis on steroids.
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But it’s not too late to turn the ship around.
Our generation can be the next wave of business owners.
We just need to be empowered & educated on how to do it.
Our generation can be the next wave of business owners.
We just need to be empowered & educated on how to do it.
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So what can you do? Start with 3 steps.
1. Build relationships with older owners
2. Learn how to buy and run a business
3. Come to my event on Dec 12th. I'm gathering current & aspiring owners from all over the world.
Ticket is free with a book here: contrarianthinking.biz/3Oe426p
1. Build relationships with older owners
2. Learn how to buy and run a business
3. Come to my event on Dec 12th. I'm gathering current & aspiring owners from all over the world.
Ticket is free with a book here: contrarianthinking.biz/3Oe426p
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We need a MOVEMENT of ownership in this country.
Because I don’t want our communities to look like this, all while we struggle to make a good living.
Because I don’t want our communities to look like this, all while we struggle to make a good living.
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You can follow me if OWNERSHIP resonates with you: @Codie_Sanchez
And feel free to share this story here:
And feel free to share this story here:
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