Business Buying Strategies from The Dealmaker's Academy

Did you know there is a government-backed lending scheme in the US that allows you to borrow up to 100% of the cost of acquiring a business? In this episode of Business Buying Strategies, Jonathan talks to Ray Drew from Fund-Ex Solutions and an expert in SBA lending about the scheme and how it has become a useful way of buying a business without using any of your own money. During the interview, Jonathan and Ray discuss how SBA lending works, why it was set up by the government, the various options available and how to apply. If you’re a listener in the US and are not aware of this scheme, you need to listen to this episode.  Even if you’re not US-based, it is worth listening as Ray reveals why the trend of Baby Boomers retiring and selling their businesses presents one of the biggest opportunities in a generation for people looking to acquire a business.  Here are the key highlights: 01:18 - How Ray became an expert in SBA loans and how the landscape has changed in the last few years 01:54 - Why SBA lending was developed and how it is currently being used  02:52 - How SBA 7(a) funding works 04:26 - How to apply for SBA funding  05:02 - Why business experience isn’t essential for a loan (and what other experience and factors will help) 07:15 - What options are available for raising a deposit 10:36 - The role of the seller during the process and how SBA lending benefits them 13:30 - Key conditions around the loan terms and conditions you need to know 17:40 - The importance of negotiating working capital for the acquired business 21:24 - Applicant and business eligibility for secure borrowing 25:52 - How to get Ray’s help when seeking an SBA loan Here is what you will discover… Why SBA 7(a) programme is “like a Swiss Army knife” of lending for small businesses in the US How the “Silver Tsunami” of retiring Baby Boomer business owners will create an incredible opportunity for business buyers in the next 12 months Why business acquisitions now make up 80% of Ray’s funding activity (a huge increase on previous years) How much loan-to-value you can expect using SBA funding and the maximum financing level available Why the SBA programme has created an exciting opportunity to build wealth for individuals who traditionally would not have considered buying a business How a buyer can access up to 100% deal financing by demonstrating strong sector experience or transferable skills How buyers are protected through government-mandated interest rates (you never pay about a certain fixed interest rate for your lending) Who is eligible for SBA 7(a) funding and what businesses are specifically excluded Notable quotes “The business plan is just the tip of the iceberg. It’s what you would call a full doc program, but the business plan doesn’t have to be too crazy because it’s for an existing business.” “We look for relevant experience. Most of all, we look for management experience. Experience managing people, managing a budget, managing a P&L, things like that are going to transfer over to just about any business.” “So a credible buyer for that type of business really has the potential to buy or pay up to $5 million for a business.” Episode links Fund-Ex Solutions: https://fundexsolutions.com Ray’s contact details: https://fundexsolutions.com/bios/ray-drew Ray’s LinkedIn: https://www.linkedin.com/in/raydrew4589 Ray’s Email: Rdrew@fundexsolutions.com   ** Looking for a great acquisition lawyer in the UK? Use mine! ** 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. Ready to get started? Here’s how you can start your business buying journey… Watch my FREE Dealmakers webinar training: https://www.dealmakerspodcast.com Get a FREE copy of my book: https://www.thedealmakersacademy.com/free-book-giveaway Join the Business Acquisition FastTrack course https://www.thedealmakersacademy.com/quick Already bought a business? 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 at hello@thedealmakersacademy.com for more information.

Join James Gardner, who navigated the challenges of acquiring a family-run funeral business during COVID, and Dan Bown, who shares insights on his first eight-figure deal in plant hire. Akram Abdullah reveals master negotiation techniques that slashed a cleaning business's price from £180,000 to £25,000. Nick Manuel discusses strategic acquisitions in the balloon printing sector, focusing on lead generation and cross-selling. This conversation is packed with innovative approaches to business acquisitions without dipping into personal funds.

In the latest episode of Business Buying Strategies, we speak with serial business buying entrepreneur Darren Jacobs who has bought 35 business in the last three years. Despite the rapid growth of his business, Darren does not spend any time working in the businesses he acquires. He leaves it to his management team, freeing him up to work on his growth strategy which is – buying more businesses. In this episode, he reveals why he first chose hair salons as a target for his acquisitions, how he closed so many deals so quickly and how his group head office operates to allow him the time and space to grow the business. Darren also reveals his future growth plans and why he has expanded the business through acquisition to include marketing and food. Here are the key highlights: 01:24 – Darren explains his business buying journey so far 02:20 – How a surprising offer to buy a coffee van led to Darren’s first catering acquisitions 04:28 – How Darren’s IT background and attempts to grow his business have shaped his acquisition strategy 05:21 – How Darren identified and sourced his first acquisition deal for a salon 07:35 – Why hair salons became a target for Darren’s acquisition strategy 11:45 – What motivates a salon owner to sell? (Hint: the answer isn’t always money…) 18:36 – How Darren built his management team and how his group head office runs the business 20:12 – Why Darren has started making acquisitions in a different sector 23:46 – What does the future hold for Darren in 2024? 31:05 – Darren answers common questions levelled at business buyers In this episode of Business Buying Strategies, you will discover… How Darren used the (true) story of searching for a hair salon for his step daughter proved deal sourcing gold What he learnt from the first acquisition for his step daughter that convinced him to forge ahead with building a hair salon group Why understanding the buyer’s motivation for selling is key to a great deal Why every deal except one were for businesses that were not listed for sale How the group head office is set up to manage the 120+ staff across the group without any involvement from Darren How Darren leveraged government funding to complete multiple “no money down”deals Why Darren has broken the mould when buying smaller businesses, i.e. hair salons How he is able to take months off and only needs to turn up at board meetings every month The exact number of deal sourcing letters Darren sent out to generate 300 enquiries and complete 21 deals (this number will shock you) How only two out of his 35 acquisition have required Darren to use his own money (it was just over £10k and he made it back within weeks of closing the deal)  Why money is not the most important factor for many business owners who are motivated by others factors Why Darren has acquired two marketing agencies and a printing firm to support the group How he successfully saved £110,000 on a deal for a sandwich van business turning over £250,000/year Why his experience in business acquisition allows Darren to ‘flex’ the rules  Memorable quotes from the episode “I've not met any business owner that is not optimistic about next year.” “The most powerful thing you can ever do in any negotiation is know that you can walk away and say no and mean it.” “When I look at a business, if it creates any kind of job or responsibility for me then I’m not interested, no matter how good the deal is.” ** Looking for a great acquisition lawyer in the UK? Use mine! ** 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. Ready to get started? Here’s how you can start your business buying journey… Watch my FREE Dealmakers webinar training: https://www.dealmakerspodcast.com Get a FREE copy of my book: https://www.thedealmakersacademy.com/free-book-giveaway Join the Business Acquisition FastTrack course https://www.thedealmakersacademy.com/quick Already bought a business? 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.

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.

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.   This week we meet my mastermind client, Danny Beaumont, who has bought a number of manufacturing businesses without spending a penny of his own money. Plus he only works ten hours a week and spends twice a week playing golf. Here’s Danny in front of a live audience at one of our DealMaker Live events. Key Highlights [01:14] Danny discusses his career before business buying [03:40] Choosing a sector [07:40] Danny’s role in the business [08:30] The first deal [12:16] The next deal [15:22] The role of a parent company [18:56] The retirement acquisition [20:17] The size of the business you buy [22:09] The easiest deal so far [28:25] Establishing a group [33:40] Audience Q&A Notable Quotes We monitor our pipeline, how big it is in total, our win rate. So even if we have a quiet month in order intake, if we're quoting loads then a certain number are going to come straight. They said, well, we've got an invoice filing facility, but I've never fully utilised it. I thought, oh, that's interesting, because we could potentially use some of that to buy the business I said, sorry Jim, but the deal's not going ahead so I can't offer you a job. And he said, well the guy I'm working for now is thinking about getting out, so how about I put you in touch?  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

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.   This week we go behind the scenes of July 2023’s Dealmakers Live event held just outside London. I talk with David, who was on my mastermind program back in 2019. David bought seventeen businesses, built the business group up to over £20 million of annual revenue, and he's just done a deal selling it for an eight figure sum. This is his story and how he did it.  Key Highlights [01:29] David’s background [02:46] David’s first acquisition [05:19] Discovering the podcast and joining Jonathan’s programme [06:52] Learning from others on the programme [09:07] Building his management team to enable him to focus on new acquisitions [12:05] Approaching a big corporate  [14:45] Negotiating the sale [16:40] How David filters potential acquisitions and builds his pipeline [22:27] David’s advice for new dealmakers [25:25] Looking to the future Notable Quotes And I drove many miles up and down the motorway, because I was the integration guy, I was the IT guy, I was the chief exec, I was the HR director.  So your knowledge, your skillset and your confidence level have got to stay in line.  I discovered Jonathan's podcast and started episode one and just listened for hours and hours on the motorway. And it was like the scales had been peeled from my eyes.  Learning from other people on the mastermind group allowed me to do 14 more acquisitions over the course of three years.  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

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.  This week I talk with Hari Krishnadasan, one of my mastermind clients. Hari bought a business a few years ago, but didn't actually realize that it was going to be his strategy going forward. And when he bought two more businesses during the COVID period, in a completely different sector to the one that his background and experience is in, he realised that business acquisition was the right strategy for him. This is his story.  Key Highlights [01:26] Hari’s background [03:35] The first acquisition [[05:12] The effects of Brexit and COVID [05:50] Finding Jonathan and discovering a different approach to M&A [08:36] Choosing an entirely new sector [13:02] Plans for the future [19:18] Hari’s advice for would be dealmakers Notable Quotes I'd say do something that interests you and that you've got some knowledge of, because if you've got no interest in it, I don't think it'll work. You've got to have a passion to go for it, to follow the process it's really a completely different way of doing things - you've got to work on the business, not in the business.  So it's almost like people have to hear it multiple times before they go, Oh, right, so this is real. And I just thought, well, look, let me diversify and look at something completely different. 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

Every week I interview someone from the world of mergers and acquisitions so we can find out their approach to buying businesses.  This week I talk with Bill Snow, author of M&A For Dummies, one in the famous yellow series of books.  Business Buying Strategies is the leading podcast for people who want to buy a business. Each week I interview deal makers who've been on my business acquisition Mastermind program and find out about their deals and behind the scenes of their acquisitions. If you want to know how to get started in mergers and acquisitions, then take my free online course. You can find it at www.dealmakerspodcast.co.uk Key Highlights [01:33] Bill Snow introduces himself [03:10] Working on the sales side for an investment banker [06:26] Bill's dummies approach to buying a business [11:22] Going direct to the seller [13:30] Bill's favourite negotiating approaches [19:43] Profitability vs perceived value [22:05] The strategic imperative [25:01] The perfect company? Notable Quotes It is hard to stand out as a buyer. You got to realize everybody is saying the same thing. So if you really want to buy a company, you got to realize how much competition you have when you're buying a company Use your personality because a big part of winning these mandates is the personality. Pay attention to the working capital in the business and what's going on with the working capital, understand what you're acquiring.It's the take it or leave it. It's not thinking through what the other side might react to or what they might respond   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

Darren Jacobs, a serial entrepreneur focusing on the salon industry, shares his incredible journey of acquiring 25 businesses in just eight months. He reveals the strategic shift from IT to salons and the disciplined approach to selecting targets. Darren discusses the challenges of restructuring post-pandemic, how he financed transactions, and the importance of understanding seller motivations. He also highlights key lessons learned about negotiation practices and navigating employee emotions during acquisitions, as he aims for his audacious goal of completing 100 deals.

In this episode, Jo Bell joins us to talk about her business acquisition journey and the lessons that she has learnt. We talk about how being a doer impacts the business and how it can affect your next acquisition. Jo explains that looking at deals as pure numbers can be extremely helpful when you are not sure what a business is worth. She also discusses some of the ways sellers sometimes lie about deals or place too much emphasis on things that really don’t matter in terms of pricing your business correctly. Jo also shares some words of advice to potential business buyers. Key Highlights [01:42] Jo’s interesting business acquisition [02:38] Impacts of being a doer in the business [09:04] Do you feel that people believe in you? [10:20] Driving the business and getting onboard with the structure [11:51] Buying the perfect business [12:34] What was the next deal? [15:09] Perfect way of earning money without spending yours [20:51] Business sellers fabricating customer lists [23:03] What business buyers should look for when buying a business [24:12] Seeing deals in factual numbers [27:27] Balancing positive personalities and realities of business buying [31:40] Things that business sellers don’t tell you [32:53] How do you keep yourself positive [37:06] Advice to people thinking of buying a business [40:25] Bell’s next plans Notable Quotes I think learning for me is just to do a lot more due diligence actually because I think, where I'd always gone for the model of buying goodwill and assets, not companies, I didn't see the need to do as much goodwill. Over the years, I’ve become a lot more selective; you know, I’ve realized that there are a lot of practices out there for sale and many businesses for sale. And it's more about the ones who say no than the ones who say yes, whereas maybe previously, I just saw everything as an opportunity. You know, I'm a fixer. So I enjoy the challenge of fixing something, but you then have to question why, you know, when there's stuff there that doesn't need fixing, maybe just needs tweaking or just improving. No matter whether you're buying goodwill and assets or companies do that, due diligence and an accountant can help. So I think, first and foremost, its profitability. That's ultimately the reason why we're all doing this. So you want to ensure that if it's not profitable, now, you sure as hell know how you'll get it profitable. Resources If you are looking for a lawyer in the UK to help you get the deal over the line, then use my guy, 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: https://www.dealmakersvideo.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