5 ways I Buy Businesses, Here's How You Can too...
Came up with some new lingo on this... see what you think.
Ya want in?
Came up with some new lingo on this... see what you think.
Ya want in?
First what you're looking for:
- biz below $5M in rev
- private
- older owner
- or owner who needs help & wants investment for cashflow & equity
- biz below $5M in rev
- private
- older owner
- or owner who needs help & wants investment for cashflow & equity
Path one: Ancillary Expenditures
1: Look at the biggest expenses in your current business or personal life.
2. See if you can invest in a portion of those, or buy them out.
Amazon does this...
One of their best but least known acquisitions was Kiva systems automation.
1: Look at the biggest expenses in your current business or personal life.
2. See if you can invest in a portion of those, or buy them out.
Amazon does this...
One of their best but least known acquisitions was Kiva systems automation.
Path two - Same Sector Buyout
1. You work in accounting, stop only doing the work, own the company.
Ex: @baldridgecpa was an accountant and bought an older founders accounting firm
1. You work in accounting, stop only doing the work, own the company.
Ex: @baldridgecpa was an accountant and bought an older founders accounting firm
Path three - Additive Ecosystem Buyout
1. Right now you own law firm let's say, so buy accounting firm, that can service same clients, then a consulting firm etc etc
Ex: My friend Kevin created interplay ventures, essentially backend services for startups they invest in.
1. Right now you own law firm let's say, so buy accounting firm, that can service same clients, then a consulting firm etc etc
Ex: My friend Kevin created interplay ventures, essentially backend services for startups they invest in.
Path four - Roll-up
1. You have a marketing company, saas platform, etc, why beat your competitors when you can buy them?
2. Then combine all back office for scale and synergies
Ex: ICWG, largest carwash company in the world. Created through a PE style rollup.
1. You have a marketing company, saas platform, etc, why beat your competitors when you can buy them?
2. Then combine all back office for scale and synergies
Ex: ICWG, largest carwash company in the world. Created through a PE style rollup.
Path five - Customer Acquisition
1. You have a company w/ product market fit, you want to buy a biz to 10x your customers.
Ex: Hubspot buying The Hustle. Millions of emails they can upsell to HS.
1. You have a company w/ product market fit, you want to buy a biz to 10x your customers.
Ex: Hubspot buying The Hustle. Millions of emails they can upsell to HS.
I can promise you one thing, once you start looking for deals and become. a dealmker you see them EVERYWHERE.
It's a weird nerdy financially lucrative superpower.
It's a weird nerdy financially lucrative superpower.
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