Business Buying Strategies from The Dealmaker's Academy

The Life Changing Deal

Oct 18, 2023

Dan Bown, a Mastermind client of Jonathan Jay, recently completed his first eight-figure acquisition in the plant hire sector. In this engaging discussion, he shares his journey from corporate roles to entrepreneurship, highlighting the challenges of negotiating and securing financing. Dan reveals pivotal moments in his acquisition process, including overcoming setbacks and striking essential deals. He also discusses the importance of operational efficiency, strategic growth through further acquisitions, and preparing for future business sales.

51:38

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Episode guests

Dan Bown

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Episode notes

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Quick takeaways

The transition from a corporate career to entrepreneurship can be transformative, offering a fulfilling alternative to conventional boardroom environments.

Choosing the right business to acquire necessitates thorough strategic planning and the establishment of clear financial criteria for profitability.

Negotiating a successful acquisition requires adaptability and resilience, as challenges such as seller resistance and lender management can arise.

Deep dives

The Journey of Transitioning from Corporate to Business Ownership

Transitioning from a successful corporate career to business ownership involves both challenges and rewards. A former corporate leader detailed his journey, highlighting the dissatisfaction of long boardroom meetings and a desire for more engaging work. He ultimately sought a new path in entrepreneurship, leveraging his previous experiences and business education. This aspiration led him to explore the intricacies of buying a business—a process that initially felt daunting but ultimately proved transformative.

Intro

2min

From Corporate to Entrepreneurial Ventures

18min

Navigating the Challenges of Business Acquisition

5min

Navigating Business Acquisition and Growth

21min

Strategic Transformation: Preparing a Business for Future Sale

2min

Strategic Acquisitions and Business Growth Potential

3min

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.

On this week's episode, we are going to meet Dan Bown. Dan Bown is one of my Mastermind clients, and when he came on Mastermind, he wasn't entirely sure which type of business to buy.

He's settled on plant hire, and has just done his first eight figure acquisition. In this episode, we'll find out how he did it.

Key Highlights

[01:10] Dan introduces himself and his career before becoming a dealmaker [04:16] Dan talks about how he came to join Jonathan’s Dealmaker programme [05:28] Dan outlines the first sectors he considered [08:21] Dan describes his process for shortlisting companies to approach [10:08] Dan’s first, and only, initial response [11:05] The negotiations to agree a deal to buy the business [12:57] The deal seems to fall apart [14:26] The deal is back on! [17:57] Finding the right lender [21:16] Getting to Heads of Terms [25:38] The deal gets over the line [27:18] Dan’s competitors [31:26] Learning quickly about vacuum excavation [32:24] Establishing where to cut costs [37:44] The effect of further acquisitions [41:11] The future pipeline [46:39] Plans for readying the business for a future sale

Notable Quotes

I looked back at what I'd enjoyed most in my career. And the thing I'd enjoyed most was the cut and thrust of running what I would call a proper business, which I'd done for DHL in Romania, a big turnaround and a big growth project.

So my criteria was, I just wanted to buy a business where I'd earn a decent salary, something matching or close to what I was getting in corporate life.

So I sent the letters out to 400 businesses, and I got one reply, which was the business I bought.

And I suppose the lesson from that is, yes, the experts help you, your deal team helps you, but you've also got to help yourself.

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