How To Buy A $2.1M Small Business While Working A Full Time Job (Took 221 Cold Calls)
May 5, 2025
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Drew Gelinas, a member of the Action Academy, shares his incredible journey of purchasing a $2.1M small business while maintaining a full-time job. He discusses the challenges of navigating emotional obstacles and financing complexities during the acquisition process. Drew emphasizes building strong relationships with brokers and the significance of effective communication. He reveals his future ambitions in boutique hotel ownership and the critical role of support systems and community in achieving entrepreneurial goals.
Drew's acquisition journey highlights the importance of thorough preparation and resilience in navigating emotional challenges during the business buying process.
Successful negotiation strategies, like structuring seller-financing deals, can significantly mitigate risks associated with cash flow in seasonal businesses.
Community support and mentorship are vital for providing reassurance and guidance, enabling individuals to confidently manage the complexities of business acquisition.
Deep dives
The Journey to Business Acquisition
The podcast outlines the journey of Drew as he prepares to close on his first business acquisition, a short-term rental property management company, valued at $2 million. Drew recounts the meticulous process leading up to this moment, highlighting the numerous steps involved, such as reaching out to brokers, conducting extensive market research, and underwriting potential businesses. He emphasizes the importance of thorough preparation and the mental challenges faced during the waiting periods, describing the emotional highs and lows of the acquisition process. Drew’s experiences illustrate that while excitement is part of the process, resilience and patience are equally crucial as potential complications arise.
Key Negotiation Strategies
Drew delves into the negotiation strategies that enabled him to secure favorable terms for the acquisition. He structured a seller-financing deal with a three-year standby period, allowing him to stabilize the business before taking on full debt service. This structure was pivotal for mitigating risks related to cash flow, particularly given the seasonal nature of the rental management business. Drew explains the importance of recognizing the seller's priorities and working towards a mutually beneficial agreement, showcasing that negotiations often hinge on understanding the other party's motivations.
Overcoming Financial Hurdles
Throughout the financing phase, Drew faced significant challenges, including multiple banks backing out due to the complexities of the carve-out structure of the deal. He illustrates the necessity of having contingency plans in place, stressing that thorough documentation and a good relationship with the seller were essential for navigating these obstacles. Ultimately, finding a lender who understood the nuances of the deal allowed him to secure funding, but not without considerable effort and persistence. Drew's experience underlines the reality that the financing aspect of acquisitions can be turbulent and is often fraught with unforeseen challenges.
The Importance of Community Support
Drew emphasizes the value of community and mentorship throughout his acquisition journey, particularly within the Action Academy network. He notes how discussions with peers provided crucial reassurance and guidance during moments of doubt and uncertainty. This community support allowed him to navigate complex situations with greater confidence and clarity. By sharing insights and experiences with fellow members, Drew highlights the critical role that a supportive network plays in successfully managing the emotional and logistical facets of business acquisition.
Future Aspirations and Growth Plans
Following the successful acquisition, Drew is focused on expanding his business ventures in the hospitality sector, including partnerships in boutique hotel ownership. He discusses the potential for growth and efficiency improvements within his newly acquired company, alongside plans to leverage existing relationships for future acquisitions. Drew recognizes that maintaining a balance between his W-2 job and entrepreneurial pursuits can foster productivity and creativity. He remains committed to personal and professional development while actively seeking out additional opportunities within the business landscape, demonstrating a forward-thinking approach to his career.
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