Why Buying a “Boring Business” Is a Smart Investment
While venture capitalists chase unicorns, a quieter wealth-building movement is happening on Main Street. BizBuySell’s breakdown of seller's discretionary earnings (SDE) across traditional business sectors shows that some of the most profitable opportunities are found in so-called “boring businesses” — established companies that provide essential goods and services.
In today’s uncertain economic climate marked by tariff announcements, inflation concerns, and shifting global markets — predictability is more valuable than ever. That’s why essential, cash-flowing businesses, often labeled ‘boring’, are attracting buyers who value long-term stability and predictable returns.
What Is a “Boring Business”?
The term "boring business" has become shorthand for companies that solve everyday problems and are typically defined by steady demand and recurring revenue. These businesses operate in both service and retail sectors, such as HVAC contractors, grocery stores, laundromats, auto repair shops, pharmacies, cleaning services, and hardware stores. According to BizBuySell’s Insight Report data, these industries, on average, generate seller's discretionary earnings (SDE) from $150,000 to $500,000 annually.
What makes these businesses "boring" is exactly what makes them valuable in today's economy. With ongoing concerns about inflation, supply chain disruptions, and shifting consumer spending patterns, the predictability of essential businesses has become increasingly attractive to investors seeking stability and long-term value.
The Resilience of "Boring Businesses" During Economic Downturns
Essential businesses tend to demonstrate resilience during uncertainty. While discretionary spending often contracts during economic downturns, demand for basic necessities and essential services remains steady — or even increases — as consumers prioritize repairs over replacements and focus on fundamental needs.
Insight Report data supports this resilience. During previous economic challenges, including the 2020 pandemic, many essential businesses not only survived but increased their market presence. For example:
- HVAC businesses in the top 10% earn more than $849,000 in seller's discretionary earnings, with average sale prices between $1 million and $1.5 million
- Grocery store multiples increased during the pandemic and have returned to pre-pandemic levels.
- Plumbing businesses report SDE of $896,000, also within the $1 million–$1.5 million sale price range
- Pest control companies typically operate with substantial profit margins, with owner profit percentages generally ranging from 25% at the lower end to nearly 50% at the higher end.
These businesses may not be flashy, but they offer predictable, recession-resistant returns — making them attractive investments for buyers and valuable assets for sellers. For the Q2 2025 quarterly Insight Report, prospective buyers overwhelmingly (73%) report they are looking for stable, recession resistant business responding to the challenging economic uncertainty brought on by shifting trade policy and tariff announcements.
How Boring Businesses Are Valued
Essential businesses with loyal customers and consistent cash flow have become prime acquisition targets, often commanding multiple offers and strong sale prices. BizBuySell’s Insight Report shows that businesses in these essential sectors typically trade at cash flow multiples between 2.5x and 4x. A multiple is a valuation tool that reflects how much a buyer is willing to pay for each dollar of earnings. So, for example, a business with $200,000 in SDE selling at a 3x multiple would be valued at $600,000.
Several factors influence these multiples, including recurring customer relationships, established supplier networks, and strong local market presence. Businesses with predictable revenue streams—such as grocery stores with regular customer bases or service companies with maintenance contracts—often command premium valuations.
The Silver Tsunami Leads to a Generational Shift in Ownership
As many owners of plumbing, HVAC, and similar businesses approach retirement, a generational shift is underway, creating a prime moment for buyers to acquire established, profitable operations with loyal customer bases.
The advantages of acquiring established essential businesses include:
- Existing cash flow from day one
- Established customer base and market share
- Proven business model
- Recognized brand identity
- Trained employees and established vendors
Because “boring businesses” provide essential goods and services, demand for these enterprises remains steady regardless of economic conditions. That reliability offers a solid foundation for long-term growth — and is increasingly attractive to buyers entering the small business for sale marketplace. With MBA ETA programs on the rise, a new wave of buyers is entering the market ready to acquire and scale proven established businesses.
Looking Ahead
As economic uncertainty continues to shape investment decisions from Wall Street to Main Street, essential businesses offer a compelling alternative to high-risk ventures. These operations deliver more than just steady cash flow—they provide a proven path to long-term value creation.
For buyers ready to act, the opportunity is clear: buy a business with built-in demand, operational resilience, and room to grow. In today’s market, investing in a “boring business” may be one of the smartest, most strategic moves you can make.