This is the sort of actionable wisdom for searchers and SMB acquirers that is way more valuable than what’s taught in MBA curricula focused on helping graduates work in management consulting or in F500 finance departments.
After +10 years working for leading tech startups, agencies, and VC funds, I've "accidentally" bought two dog daycares in the last 18 months, and I'm long on #SMBtwit.
A thread on why #SMB and how I bought my first company 👇🏼
100%
Connections and personal relationships matter.
If there is an “easy” button, look somewhere else because the easier path will likely lead to standard results.
A recession plus millions of boomer near retirement is going to create a tremendous business buying opportunities
The best deals aren’t listed on BizBuySell
They are created through relationships
Seemingly every search fund has some variation of these same criteria.
The contrarian in me wonders:
What opportunities are out there that don’t meet them?
Deals are as much emotion and logic. Get to be good with your people skills.
Searchers who are:
- good at building rapport
- emotionally intelligent
- respectful
- friendly
will get much farther than the shark who has no personality.
Feeling overwhelmed with the thought of the intricacies of the deal?
It doesn’t need to be scary.
Great thread here from @SMB_Attorney learn more and help you act on that business you are looking to acquire.
Raise your hand if you want me to walk you through purchase price mechanics inside an Asset Purchase Agreement!
Whoa, whoa, okay settle down.
After all, it’s only the price you pay when you buy a company, why is it so important?
Fine, I’ll tell you.
👇
Are you thinking of buying a SMB?
There's a lot more to it than just the spreadsheets and paperwork.
You have your life to consider. And that can make for a beautiful picture.
#smb#eta#searchfund
Working on a deal right now for a guy leaving corporate America to buy a $3 million company.
~80% bank leverage
~10% seller financing
~10% equity injection (of which ~1/10th will come from buyer, 9/10 from investors)
Only in America! 1/x
Even if you are looking to make an acquisition soon, you should then start thinking about how you grow and then exit.
Great thread focused on systems to make that happen from @Codie_Sanchez
Current read in our office:
Some good perspective to think about as a buyer about what the seller is going through and then ultimately how to position your new acquisition for an exit in the future.
https://t.co/jsHwpUCtT9
"If you're going to be exceptional, you also have to be self-critical."
- @KenBurns
Let's take a look at how you can use this during your search for a business to acquire:
Quick 🧵
Checking your emotions on a deal.
You have to be self-critical on how you approach and evaluate a deal. Try and keep emotions out of it.
It's easy to fall in love with a business and make plans in your head. It's a whole other thing to execute.
Local coffee shop in wealthy area. Asked owner to pay for the next $100 worth of coffee and leave business cards.
ROI: 4200% - 1 commercial customer and 3 residential.
When you buy a business, you risk bankruptcy -- or worse!
I’ve studied over 1,000 businesses for sale in 2022.
The 11 biggest traps for you to avoid:
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