Action Academy | Replace The Job You Hate With A Life You Love How to SURVIVE When Business Acquisitions Go SIDEWAYS (The Seller FAKED Cancer.....)
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May 1, 2025 
Chandra Rao, an acquisitions entrepreneur with a track record of seven successful purchases in six years, shares fascinating insights on business acquisitions. He discusses the importance of detecting fraud and the strategic choice between acquiring smaller entities versus a larger firm. Notably, he recounts a troubling tale of a partner who faked cancer, emphasizing the necessity of due diligence and accountability. Chandra also illuminates the effectiveness of clawbacks and holdbacks to safeguard investments, highlighting critical lessons that can help aspiring entrepreneurs navigate the turbulent waters of business acquisitions.
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Partnership Rooted in Friendship
- Chandra Rao and his partner Colin built their business partnership on a 20-year friendship rooted in mutual trust and similar values.
- They did not initially have detailed discussions about roles, income expectations, or exit strategies, which is crucial in partnerships.
Clarify Partner Expectations Early
- Discuss expectations such as income needs, roles, and exit plans openly before partnering.
- Clarify if your goal is long-term wealth or quick exit to align values.
Draft Robust Operating Agreements
- Operating agreements must cover doomsday scenarios like if a partner stops fulfilling responsibilities or legal disputes arise.
- Nail down buyout conditions to prevent costly, prolonged legal battles.