In this podcast, Walker Deibel, author and serial acquisition entrepreneur, discusses the inspiration behind his book 'Buy Then Build' and shares his opinion on the startup model. He also talks about the Ten Trillion Dollar Tsunami and the importance of a growth mindset. Additionally, he provides insights on the acquisition process and finding capital to buy a company.
Acquiring an existing company with a proven track record can provide a more solid foundation for growth compared to starting a business from scratch.
Access to capital for business acquisitions has never been easier, thanks to programs like SBA loans, creating a significant opportunity for entrepreneurs in the e-commerce space.
Deep dives
The Importance of a Growth Opportunity in Acquiring Companies
One of the key factors in successful acquisitions is the growth opportunity that the buyer can capitalize on. Understanding what you bring to the table as an entrepreneur and identifying a good opportunity is crucial. By focusing on a growth opportunity, rather than just starting a business from scratch, you can increase your chances of success. Many small businesses fail, but acquiring an existing company with a proven track record can provide a more solid foundation for growth.
The 10 Trillion Dollar Tsunami of Business Transfers
There is a confluence of factors driving a 10 trillion dollar tsunami of business transfers. Firstly, there is a massive amount of business value currently owned by baby boomers that needs to change hands as they retire. This presents a unique opportunity for acquisitions. Secondly, access to capital for business acquisitions has never been easier, thanks to programs like SBA loans. Lastly, the proliferation of online businesses has made them more established and attractive for acquisitions. This combination creates a significant opportunity for entrepreneurs in the e-commerce space.
The Importance of a Growth Mindset
Having a growth mindset is crucial for successful entrepreneurship. It means being open to learning, embracing challenges, and believing in your ability to grow and adapt. Cultivating a growth mindset can be achieved through understanding the difference between fixed and growth mindset thinking, identifying and correcting fixed mindset thoughts, and consistently working on personal growth and development. A growth mindset allows entrepreneurs to navigate the ups and downs of business ownership and persevere through challenges.
Overcoming the Capital Barrier
The belief that one doesn't have enough capital to buy a company can hold many people back from pursuing acquisitions. However, with programs like SBA loans, access to capital for business acquisitions has become more accessible than ever. The SBA can cover up to 90% of the acquisition cost, leaving the buyer with only a fraction to cover. Additionally, exploring options like seller financing or raising capital through alternative means can help bridge the gap. Changing the mindset and understanding the potential return on investment can make acquiring a company more feasible and attractive than starting from scratch.
In this episode, we will be interviewing the best selling author of the book Buy Then Build, Walker Deibel. He is also a serial acquisition entrepreneur, M&A advisor, and a successful movie producer. Walker acquired seven companies over ten years and co-founded several startups.
Let’s dive right in and learn how to buy a business without having to have the money that it takes.
[00:01 - 06:00] Opening Segment
Walker shares the story about his background and the beginning of his career journey
Acquiring some of the largest companies in the world was achievable
[06:01 - 14:34] Buy Then Build
Walker talks about the inspiration behind the content of his book, Buy Then Build
Walker talks about the first company he bought in 2008 that gives him the idea to write his book
[15:30 - 25:59] Don’t Start a Business
Walker shares his opinion on why he does not recommend starting a business
Taking the odds of the startup model and just flip it over
[20:40 - 25:39] Ten Trillion Dollars Tsunami
Walker talks about the Ten Trillion Dollar Tsunami
There are ten trillion dollars of business value currently owned by baby boomers that need to change
[25:40 - 30:19] Growth Mindset Vs. Fix Mindset
Walker talks about Carol Dweck’s mindset traits study
Walker talks about Positive psychology
[30:20 - 37:15] Successful Acquisition
Walker talks about one of the most important pieces of the puzzle during the acquisition process
Finding capital to buy a company
[37:26 - 45:24] Closing Segment
Favorite book:
Good to Great by Jim Collins
The Innovation Stack by Jim McKelvey
Hobbies: Reading and writing, Road biking, Film producing
Successful e-commerce entrepreneurs vs. people who give up: