Good morning. Instead of launching startups or building new brands, young Canadians are buying \u201cboring\u201d businesses from retiring boomers \u2013 think car washes and vending machine companies. And I need to warn you: By the end of this newsletter, you might start browsing listings for laundromats. But first:<\/p>\n
In the news<\/p>\n
Ottawa: <\/b>Prime Minister Mark Carney\u2019s government promises a \u201csubstantive\u201d fall update, as critics call<\/a> for a full budget.<\/p>\n Economy:<\/b> The TSX might have closed at a record high<\/a>, but Canada\u2019s economy is still in flux, as Donald Trump starts cutting tariff deals<\/a>. <\/p>\n Health:<\/b> Ontario plans to launch a new consultation<\/a> on restricting exclusive deals between pharmacies and insurers.<\/p>\n Retail:<\/b> Canadian Tire will acquire<\/a> the historic Hudson\u2019s Bay stripe design and other intellectual property in a $30-million deal.<\/p>\n In the knowFirst Nations group buying minority stake in Enbridge\u2019s Westcoast pipeline network<\/p>\n Stonlasec8 Indigenous Alliance Limited Partnership will acquire a 12.5-per-cent interest<\/a> in Enbridge\u2019s Westcoast gas system.<\/p>\n Quick programming note<\/p>\n We\u2019re taking Victoria Day off, and you should too! We will be back in your inbox Tuesday morning after the long weekend.<\/p>\n Open this photo in gallery:<\/a><\/p>\n Maureen Ngo, owner of East Van Laundry, bought a laundromat in Vancouver at age 23 in 2023.Isabella Falsetti\/The Globe and Mail<\/p>\n In focusRetiring business owners are sweeping the country. That\u2019s an opportunity.<\/p>\n Hi, it\u2019s Meera Raman, The Globe\u2019s retirement and financial planning reporter.<\/p>\n I didn\u2019t set out to write a story that would make me (and maybe you) rethink what a \u201cdream job\u201d looks like. But after a few weeks of talking to people in their 20s, 30s and 40s about why they\u2019re buying laundromats, car washes and other so-called \u201cboring businesses\u201d from retiring Canadians, that\u2019s exactly what happened.<\/p>\n These aren\u2019t get-rich-quick schemes. In fact, the appeal is the opposite. Instead of starting something new (and risky), budding entrepreneurs are looking to buy businesses that already have steady customers, proven revenue, and low overheads that make them more resilient to recessions. <\/p>\n And right now, there are plenty of businesses up for grabs as older owners look to retire.<\/p>\n The numbers here are big. About 75 per cent of business owners plan to exit their companies in the next decade \u2013 that\u2019s over $2-trillion in assets that could change hands.<\/p>\n For some of these buyers, owning a boring business is a pathway to escape the monotony of a 9-to-5 job. For others, it\u2019s not meant to replace the income they make at their day job, but is instead an investment, similar to a rental property.<\/p>\n Let\u2019s look at an example: Maureen Ngo. She was in her fourth year at the University of British Columbia when she decided to drop out. Not to build a tech startup or launch a lifestyle brand \u2013 she left school to buy a laundromat.<\/p>\n Open this photo in gallery:<\/a><\/p>\n Maureen Ngo talks with her store manager Malisha behind the front desk.Isabella Falsetti\/The Globe and Mail<\/p>\n Ngo told me she didn\u2019t want to feel stuck in a 9-to-5 job. And when she stumbled on Codie Sanchez<\/a> \u2013 a popular YouTuber who champions the \u201cboring business\u201d path to financial freedom \u2013she was hooked. <\/p>\n She spent eight months researching the laundromat industry, then hand-delivered letters to more than 20 laundromat owners across Vancouver expressing her interest in buying their business.<\/p>\n One of them bit. A year and a half later, she\u2019s made her investment back, built a small team, and is thinking about buying another business.<\/p>\n What struck me while <\/b>most reporting this story was how personal these deals are. They\u2019re not your classic mergers-and-acquisitions setups, with lawyers, brokers and big egos in boardrooms. They\u2019re happening over casual conversations or \u2013 in one case \u2013 while someone was washing their truck.<\/p>\n Jeff Martinuk was doing just that when Michael Zorn, the then-owner of Grenfell Car Wash in rural Saskatchewan, walked up and asked if he\u2019d be interested in taking over the business. Zorn, 54, was ready to sell after two decades, as the work was becoming physically demanding, and Jeff \u2013 a young guy in his 30s and a familiar face in town \u2013 seemed like the right fit. <\/p>\n Jeff and his wife, Michelle, were hesitant at first. But after digging into the business\u2019s financials, it looked like a good investment for them, and they ended up buying it. They\u2019re still learning the ropes, but they\u2019re breaking even and plan to use the profits to pay off their debt.<\/p>\n Of course, this isn\u2019t an easy path. Financing is tough. Some of the buyers I spoke with used a mix of loans and personal savings. And many are competing with \u201csearch funds,\u201d backed by investors and private equity firms. <\/p>\n Open this photo in gallery:<\/a><\/p>\n Jeff and Michelle Martinuk.TATUM DURYBA\/The Globe and Mail<\/p>\n But smaller buyers have something money can\u2019t always buy: relationships. For a lot of retiring owners, choosing a buyer is about more than price \u2013 it\u2019s about passing the torch to someone who cares.<\/p>\n \u201cI was clear with him right from the beginning, \u2018I\u2019m not going anywhere. I\u2019m here to help you,\u2019\u201d Zorn said of Jeff. \u201cI want to see him do well, because I took a fair bit of pride in how I ran the business. I think highly of them, and I want them to be blessed by the business too.\u201d<\/p>\n It\u2019s not sexy. But boring just might be the hottest new business deal.<\/p>\n To read more, check out my full story<\/a>. <\/p>\n If you read it, you\u2019ll even get to figure out what a powder coating business is (spoiler: it\u2019s boring). <\/p>\n ChartedOntario projects $14.6-billion deficit in budget <\/p>\n The Ontario government is forecasting a deficit almost 10 times larger<\/a> than it predicted last fall for the coming fiscal year, as the province wrestles with the impact of U.S. tariffs. Here are six key takeaways<\/a> from the budget. <\/p>\n BookmarkedOn our reading list<\/p>\n Round two: <\/b>Canada Post workers could go on strike this month. Here\u2019s what to know<\/a>.<\/p>\n Up in the air:<\/b> The jet Qatar wants to give to Donald Trump? Probably not<\/a> going to happen.<\/p>\n Dropping bars: <\/b>U.S. academics warn the Drake lawsuit could have “dangerous” ripple effects<\/a> on rap music.<\/p>\n Morning update<\/p>\n\n