My Top 16 Lessons On Actively Looking For Exeptional $2-10 Million Revenue Companies (Pre-Acquisition)
Mar 29, 2024
Discover the transformative power of acquiring traditional businesses with revenues between $2-10 million. Learn how street smarts and genuine connections can lead to successful negotiations. The speaker shares insights on the happiness of old-school business owners and their stress-free lifestyles. Key negotiation techniques emphasize the value of silence and patience. A spontaneous trip to London reveals how ordinary companies hold extraordinary potential for investment. Listening is crucial—appreciating the hard work of business owners can make all the difference.
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volunteer_activism ADVICE
Anyone Can Acquire Businesses
Anyone with average intelligence can acquire small businesses.
Believe in yourself and your ability to figure things out along the way.
volunteer_activism ADVICE
Forget the Industry Initially
In the beginning, forget about the industry and look for established profitable companies.
Focus on quality businesses rather than specific industry sectors.
volunteer_activism ADVICE
Be Street Smart and Persistent
Being street smart beats technical skills in acquisitions.
Use cold calling, soft skills, listening, asking great questions, and persistent follow-ups.
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One great acquisition can change the life of you and your children.Forever.As the smartest private market deal makers have said:"The goal is to acquire $10 bills for $3 ... and again, that's only possible in the private markets."My top 5 lessons on actively looking for exeptional $2-10 million revenue companies. (Pre-acquisition)1.Being street smart will take you further than you can imagine. Cold calling. Being likable.General soft skill, listening more than talking, asking great questions. Doing a follow up. Many don't want to do it, and most don’t know how to do it.2. VC is sexy; but old-school folks who run a cogs and gears manufacturing biz in their 50s are much happier. They make money every single day. Days become weeks. Weeks become months and years.95% of them are seriously happy with zero debt and not much stress. Time for a wife, time for kids, time for hobbies, time to travel. No Forbes but they could care less.3. An hour-long meeting that will last 2-3 hours. Take time and listen. This is their life's work. Very rarely does anyone go there and appreciate the work they’ve done. It’s their baby. It’s the company they have built. Be that person who listens.4. Without brokers, it takes years. Getting a person who does not want to sell their business to actually sell it, takes ages. You really have to enjoy the journey. If it's a great business, you play by their rules.5. Soft-skills. Forget the Excel and EBITDA. They barely use CRM. Talk in plain language: "How much money did you make last year?"That and 11 other lessons, hot takes on this week's podcast:
00:00 - Intro
00:47 - A person with average intelligence can do it
02:56 - Forget the industry
08:52 - It's a numbers game
16:12 - Emails are good. Phone calls are better. IRL meetings are the best
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