In this discussion, Dave Gilbert, a seasoned holding company operator with a tech background, shares insights from acquiring an accounting service for $3.8 million and an engineering firm. He reveals the legal complexities of buying an accounting business, particularly for non-accountants, and how he successfully expanded services despite early challenges. Dave emphasizes the importance of structuring deals effectively and building trustworthy partnerships, all while navigating post-acquisition dynamics and driving business growth in challenging economic times.
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volunteer_activism ADVICE
Choose Trustworthy Partners
Find a business partner you deeply trust and whose skills complement your own.
Spend time getting to know your partner well before committing to a business venture together.
question_answer ANECDOTE
Family Dynamics Raised Red Flags
Dave Gilbert discovered red flags such as complex family dynamics in the accounting firm he bought.
Despite concerns, he proceeded after assessing cash flow and operational prospects.
volunteer_activism ADVICE
Personalize Acquisition Outreach
Personalize outreach to business owners by sharing your background and intentions to get better responses.
Consistent direct messaging leads to high open and meeting rates from potential sellers.
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How Acquisition Entrepreneurs Outsmart the Startup Game
Walker Deibel
In 'Buy Then Build,' Walker Deibel provides a comprehensive guide for acquisition entrepreneurs. The book explains how to skip the startup phase and generate profitable revenue immediately by buying an existing company. It covers topics such as finding great brokers, generating 'deal flow,' uncovering opportunities and risks, navigating the acquisition process, and transitioning into the role of a CEO. Deibel argues that buying a business is often more lucrative than starting one from scratch, especially with the current market trends and the retirement of baby boomers who own many small businesses.
I spoke with Dave Gilbert, a holding company operator who bought two different businesses over the last two years with his partner. First they bought an accounting service for $2.8 million (Note: $3.8m was mentioned during the episode, but $2.8m is the correct figure). Dave walks us through some of the legal considerations of a non-accountant buying an accounting business, including how he expanded the services. Despite all the chaos that comes in the first year of buying a business, Dave and his partner managed to grow the business by 10%.
They also bought an engineering firm last year, and are working on finding new acquisitions. If you're interested in starting a holding company, listen to Dave's thoughtful approach to structuring deals and operating his businesses.
Thanks to Vesto for sponsoring today's episode. Visit https://vesto.com/sieva to check them out.
1:01 Starting a holding company and buying 2 businesses 3:20 A word from Vesto 4:26 Dave's previous business & exit 13:23 Buying an accounting business 24:48 Structure of the deal 33:26 How to grow a business post-close 40:10 Buying the second business
Business Buying Academy 