Business Buying Strategies from The Dealmaker's Academy

From insurance broker to commercial cleaning business owner

Jul 20, 2023

Former insurance broker, Akram Abdullah, shares his journey of selling his insurance brokerage and acquiring a commercial cleaning business. He emphasizes the importance of seller's motivation and highlights the benefits of buying an existing business rather than starting from scratch. Akram discusses the negotiations, fixing the acquired business, and ultimately selling it. He provides valuable tips and advice for aspiring business buyers.

23:47

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Episode guests

Akram Abdullah

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Episode notes

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Quick takeaways

Understanding the seller's motivation is crucial when acquiring a business.

Educating oneself about the process and finding a business that aligns with personal interests are key to a successful business acquisition.

Deep dives

Akram Abdulna's Background and Career

Akram Abdulna, a financial services professional, started his own insurance brokerage with a business partner but eventually fell out of love with the business due to the daily grind and lack of excitement. He realized that he wanted to buy an already established business with recurring revenue. After researching and considering various options, he decided on acquiring a commercial cleaning business. Despite challenges with overpriced businesses and high seller expectations, he received an email from a broker about a cleaning business that had reduced its price. He met with the motivated seller, negotiated the price down to 25,000 pounds from an original asking price of 180,000 pounds, and completed the deal with 20,000 pounds paid upfront and 5,000 pounds deferred. He was pleasantly surprised to find additional money dropping into the business's bank account overnight.

Introduction

2min

Falling out of love with a business, finding the right buyer, and using deferred consideration

2min

Transition to Business Buyer: Finding a Commercial Cleaning Business

7min

Financial Aspects of Buying a Commercial Cleaning Business

9min

Advantages of Buying a Business and Negotiating Tips

4min

This week Jonathan talks with Akram Abdullah, who started a successful insurance brokerage with his brother, fell out of love with it, and sold it. Then, in the space of just eight months he acquired a commercial cleaning business, fixed it, and then sold it to the manager he had recruited to run it for him.

Key Highlights

[01:05] Akram talks about his career to date

[01:48] Deciding to sell his insurance broker business

[03:30] Deciding to acquire a business rather than start a new one

[04:20] What sort of business was Akram looking for?

[06:00] The first meeting with the seller

[07:20] How the negotiations for the deal went through

[12:30] The fixes that were needed

[15:40] Selling the business on

[20:20] Tips and advice for would-be business buyers

Notable Quotes

And then all of a sudden I've got a business and this recurring revenue that I had been so interested in, I could now see it coming through.
The most important thing is the seller's motivation. That is crucial.
So for me, I don't believe I will ever start a business from scratch again. I would only look to acquire.
You need to do it. It's as simple as that. You need to take that first step.

Resources

Buying a business is only the start, which is why we are now teaching what happens next on the Mastermind program. Now, if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on hello@thedealmakersacademy.com for more information.

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.

If you would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at: www.dealmakerspodcast.co.uk

Watch my Webinar Training Video: https://www.dealmakerspodcast.co.uk

You can also request a free copy of my book at: https://www.thedealmakersacademy.com/free-book-giveaway/

If you want to jump straight to my live Zoom FastTrack course, please go to: https://www.thedealmakersacademy.com/fast

Connect with Jonathan Jay at: Website: https://www.thedealmakersacademy.com/ LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/ YouTube: https://www.youtube.com/c/TheDealmakersAcademy

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