The Cash Flow Contractor 154 - Growth by Acquisition
Mar 16, 2023
39:14
Starting your own business is exciting, but you'll soon learn how critical it is to grow. Most business owners look to advertising and promotion to achieve this. But what if there's another way? What if your business could instead grow through acquisition? Tune in to find out if this is a viable option for you!
Time Stamps
- 00:37 - A Pig in a Poke
- 02:06 - Episode Intro
- 02:57 - The Value of a Business
- 09:10 - Why Consider Growth by Acquisition
- 13:01 - How to Approach Growth by Acquisition
- 17:59 - Financing for Business Sales
- 24:20 - Understanding Multiple Arbitrage
- 28:23 - Other Benefits You Can Get Through Acquisition
- 31:11 - Being Intentional with Your Business Exit
- 37:32 - Episode Takeaways
Quotable Moments
- "If the value of your company is profits times a multiple and you double your profit, you will double the value. If the profits remain the same, but you double somehow the multiple, you will double the value of your business. If you do both, double your profit and double the multiple, your business will be worth four times as much.” - Martin Holland
- “People right now are a little bit hard to find. It's not impossible, but it's hard.” - Martin Holland
- “It is way faster to acquire a business, and the customers, and the employees, and the talent, and the systems, and the machine than it is to go and start from scratch and start that new location. And so being able to do that is a huge advantage.” - Khalil Benalioulhaj
- “Everyone has an exit in their company at some point, whether it's intentional or unintentional; you pass away, hand it off to your children, or you have to sell. Whatever happens, there's going to be an exit at some point, so why not be intentional about it?“ - Khalil Benalioulhaj
- “You need to know what it’s [your business] worth to you, and that's where your offer is. That's your maximum offer.” - Martin Holland
Resources
- Listen to Episode 20: “A Strong Foundation with Will Blake” on Spotify and Apple Podcast
- Listen to Episode 26: “Build a Business to Sell with Larry Hughes” on Spotify and Apple Podcast
- Listen to Episode 86: “Selling Your Business with Hank Bockus” on Spotify and Apple Podcast
- Listen to Episode 137: “From Corporate to Contractor With Chris Edwards” on Spotify and Apple Podcast
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