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How to SURVIVE When Business Acquisitions Go SIDEWAYS (The Seller FAKED Cancer.....)
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.
40:29
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Quick takeaways
- Thorough due diligence is crucial in business acquisitions to uncover hidden issues and prevent significant financial losses.
- Building strong partnerships based on shared values and open communication is essential for successful business ventures.
Deep dives
Lessons from Acquisitions
The discussion highlights the complexities involved in acquiring businesses, particularly the misconceptions newcomers often have about the process. It emphasizes that buying a cash-flowing business isn't just about hiring a passive operator; it's essential to understand the intricacies of running a business and the risks that come with it. For example, acquiring a business requires diligence in spotting potential fraud and ensuring that all aspects of the deal are sound. The conversation suggests that starting with a substantial business rather than multiple smaller ones can offer better opportunities for growth and efficiency.
