Why Traditional, Unglamorous Companies Can Deliver Exceptional Wealth
When most people think of wealth creation, the image that comes to mind is flashy tech startups or big Wall Street deals. But a recent Wall Street Journal feature shows a quieter—but equally powerful—form of wealth-building: the “stealthy wealthy.” These are entrepreneurs who grew rich running everyday businesses—home services, facility services, utility services, equipment distribution, food packaging —industries often overlooked but deeply profitable.
What the “Stealthy Wealthy” Reveal
- Medium-sized, traditional companies dominate: Businesses with annual revenues around $20M and ~100 employees accounted for 34.9% of income for the top 1% of earners in 2022 (up from 30.3% in 2014); for the top 0.1%, it was 43.1%.
- Examples in action:
- Derek Olson built a flooring equipment business specializing in carpet-removal machines for schools—steady, necessary, and profitable.
- David MacNeil launched WeatherTech after importing durable car floor mats, turning a garage operation into an $800M U.S. manufacturing business.
Why These Businesses Win
- Reliable, recurring demand: schools always need floor maintenance, drivers always need mats.
- Lower competition: higher margins: Niche problems attract fewer players and allow for consistent returns.
- Stable key employees: providing long-term employment for key employees, sometimes sharing in the equity or profitability.
Chinook’s Strategic Insight
At Chinook Capital Advisors, we’ve seen again and again that buyers—especially private equity and strategic acquirers—are drawn to businesses with dependable revenue and clear operational stability. Our approach helps:
- Identify the long-term value in niche, under-the-radar businesses
- Prepare for a sale by highlighting predictable income, solid processes, and repeat customer bases
- Position these assets to maximize returns in M&A and exit strategies
- Planning is key by completing a strategic assessment of today’s valuation and company readiness
Final Takeaway
The WSJ’s “stealthy wealthy” are proof positive: wealth doesn’t have to be glamorous. A well-run, honest, everyday business can not only sustain family legacies—it can create them by the wealth they create. If you run or own one of those businesses, Chinook can help you unlock its full value. Reach out to begin your Strategic Assessment.
