Business Buying Strategies from The Dealmaker's Academy

In today's episode, I'm talking to Cliff Spolander, who helps entrepreneurs to maximize the value of their business ready for sale. Cliff has spoken to more than 1,000 business owners looking to exit their business. We talk about what he's learned from those 1,000 business owners. We also talk about how he helps business owners to maximize the value of their business and finding the problems and flaws that could put off a potential buyer.

[02:08] Cliff's conclusions after speaking to so many business owners

[03:40] What are the main types of business exit?

[06:17] How business liquidation works

[10:00] Strategies for selling to private equity-backed buyers

[12:07] Cliff's views on owners using brokers to exit

[13:08] Alternative ways to exit

[14:38] Key things an owner needs to get ready to sell the business for the best value

[16:40] Why one should not rely on one or two individuals

[20:48] What speeds up the process of selling a business

[22:35] Quick wins business owners can implement to get the best chance of a successful exit

[25:21] How business buyer hedges against the risk of workers failing to show up at work after acquisition

[28:54] Advice to potential business buyers

[30:14] Connect with Cliff

• I think the biggest takeaway from my speaking with these owners is that they are not prepared for the exit process.
• I think unplanned liquidation is, yeah, a failure. Whereas if you don't see it coming, yeah.
• I think if there's open, honest communication mentioned, it's perfectly legit and a good way of doing things, but it goes around how the owner deals with that internally and making sure that the staff is happy and motivated.
• I think the owner needs to get proper operating procedures and training manuals, get everything out of the employee's head onto paper, and document the process because things change and evolve.
• As a consultant myself, I think it's very important to be able to prove your value. And so if you can show the client that you've increased the business value by X 1000s of pounds, you've reduced their wealth gap by X 1000s of pounds, you reduce the risk profile in the business, you can prove and show your worth as a consultant.
• There's more to business then than the numbers. And although they are important, but I think now the fact that comes in is to making sure that it's a fit for both people.
• Go for it, there's nothing holding you back; look for a good fit. Also, understand what your exit plan is, as well as know the purpose of your doing this.

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 [email protected].

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

This week we discuss business brokers, as I speak with Rob Goddard about what it entails to be a business broker and why first-time buyers should avoid using them. Rob also discusses how to maximise your exit value.

Key Highlights

[01:28] Rob's first business to sell

[04:20] What it entails to be a business broker

[07:31] How competitive tension drives up the price of a business

[11:32] Rob's opinion on people's priorities changing as they continue with the negotiation process

[17:00] Why it is not always about money!

[19:00] Why first-time buyers should not use brokers

[21:05] What serious investors do

[28:48] How to maximize one's exit value

[30:19] The benefit of employing people rather than working for yourself

[33:58] The only number that matters for a seller

[35:46] Connect with Rob on LinkedIn

• The highest bidder isn't necessarily the best bidder; it might be number two or three because there's a bit of fit.
• So, if you're a top buyer, a tip for any buyers listening to this is to understand what the hot buttons are for the person you're in front of and what matters to them most.
• Competitive tension can drive up prices.
• There are always two multiples; I've always taught this as two multiples on any deal. There are multiple sellers and buyers multiples; they're often not the same number.
• Think about the exit before you've bought a business and sunk any time and money into it after the best time to think about your exits before you've bought one.

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 [email protected].

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

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.

[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

• 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 [email protected].

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

In this episode, we talk to Dee Ludlow, where we will discuss what it takes to buy a business in terms of your mindset. We're also talking about business buying negotiations. What new buyers worry about when they are on the brink of buying a business is also discussed in this episode. We also talk about mistakes made by new business buyers so you can avoid them when you get into deals. Dee also shares reasons business buyers should consider bigger deals over smaller ones.

[02:00] What was interesting in buying a business?

[05:08] Ludlow's first investment in the property industry

[07:45] Working in the business rather than working on the business

[09:46] Having a successful mindset in business

[10:40] What new buyers worry about

[13:48] Reasons why people stick on some deals even when they know it is not the right thing to do

[22:28] Risk reward

[24:26] Mistakes made by new business buyers

[29:20] Advice to people interested in business buying and haven't bought a business yet

[31:45] Why venture into bigger deals

• I think experience is the best way to learn. But you can fast-track it by having help.
• I think a lot of the time, people do look past the mindset, and they're looking for the value. But you need that self-belief and the mindset there for you to believe it.
• No matter how much work you spend on one, I know it sounds cliche when they say some of the best deals are the ones you walk away from. But it's true.
• Never be scared to walk away from a deal. I've I wish I'd walked away.
• To me, income is the most important thing, and that's the reward you get when you buy a business as you access income.
• The biggest mistake I think I've underestimated is that you will need to put the time in. But the reward for that time is exponential.
• You can be the most intelligent person down the pub and everything about buying a business, but if you don't actually get on with it, you're never going to do it. It's hard to once you've done it; it's the best thing you'll ever have done.

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 [email protected].

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

In this episode, Jonathan speaks to Nick, one of his mastermind clients, to get to know how his recent acquisitions have transformed his existing business. Nick joins us to share what his normal day is like. Nick talks about the lessons he has learned since he made his first acquisition. We also understand how Nick's thinking has changed since this acquisition.

[05:12] The history of the company

[07:05] About the acquisition of the balloon company

[08:27] How did the acquisition make changes to the sales process

[10:07] Lessons learned from past acquisitions

[12:53] where was the business size and client base before you bought it?

[15:38] Points when one starts losing clients

[16:42] How Nick's thinking has changed since the acquisition

• I think one of the main things I've learned is about the first acquisition; for meI love to do things the hard way; I tend to throw myself into the deep end.
• It's challenging to get into many clients because they can buy it if we've sent it cheaper. So you have to add a lot of value at that point. And it's quite a hard sell.

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 [email protected].

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

It's the nerve center of a business – the books are critical to a company's financial health and prosperity. But how do you know how your business will perform when it comes time to buy another? In this episode, we talk to Johan Goree, the managing director of on-point accounting firm. He shares his tips on what to look at when presented with a set of accounts and more accounting insights for potential business buyers. Johann also shares some words of advice to those interested in purchasing their businesses and haven't owing to some fears.

[00:14] What Johan does in his accounting firm

[02:14] Top three things that Johan looks at when presented with a set of accounts

[06:06] How to deal with vendors of businesses who don't have up-to-date information and blame it on accountants

[10:36] Acquisitions done by Johan

[13:54] How to deal with business owners who say they have fixed assets of a certain value, they've got stock of a certain value, and they want 100% of that value

[18:20] Johan's take on the purchase of business without including the firm's assets

[25:304] How to finance business acquisitions

[27:47] Advice to the people who want to buy businesses but they haven't

• Profit is a figure that can be moved on paper. What's more important is how's the cash flow.
• If you're looking to sell your business, you want to have instant accessible financial data, and you want it to be live so you can get the best value for your business because the accounts that are two or three months old on 12 months old may not be the true reflection of where your business is now.
• If you are trying, if you're a vendor, and you're trying to sell your business, you need to start planning ahead. So if you know, in the next year, you want to sell your business, talk to your accountant about getting cloud systems.
• If you've got a slow solicitor and you've got a slow vendor or a slow acquirer, then don't start financial due diligence until you are comfortable that you are within a month of the close of the business.
• If you are planning on raising finance on this company that you're going to buy, so you can finance the deal, then get the, get the lenders to do most of your financial due diligence.
• If you don't take that first step, you're not going to get it.
• I think there is a joint responsibility between accountants and business owners to have modern accounting systems and processes.
• So if you know, in the next year, you want to sell your business, talk to your accountant about getting cloud systems.

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 [email protected].

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

In this episode, Jonathan is joined by Ian Leslie, Company Director, pilot and professional photographer specializing in high-quality, stunning photography and video. With over forty years in business, Ian has built, grown, and exited more than eight businesses. He joins us to share his story, how he started acquiring businesses, his subsequent acquisitions, and he also shares some words of advice to people who want to start dealmaking.

[00:14] How Ian ventured into business

[01:58] What Ian has learned over the 40 years in business

[04:16] Ian's first business acquisition

[05:51] Deals negotiation process

[10:51] The development of the business after the first acquisition

[12:21] The best people to buy a business from

[18:26] How much money is enough for a one to live a satisfying life

[21:12] Who else would you add to your deal team?

[22:51] Importance of having the right people in a deal

[27:13] Ian's advice to prospective business buyers

• Go with your gut. Absolutely. And if you want to do something, go for it. Find a way to do it. Don't procrastinate.
• Having a figure in mind at all times if somebody came along and knocked on your door, so I will give you X for your business; if that figure matches, go, just take the money and run.
• The beauty of being in business is you've got the ability to, I'll use the word passive income, because that, but it's never passive. But you've you've built a business that's generating an income. And if you get the right management team in there, they will be able to sustain so it almost becomes a pension.
• Read, learn, digest, and ask questions.
• My view through life is always learning. I've always been curious. And it's an interesting one because it's never been part of my published valleys that we've written. And I've actually thought curious people make progress.

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 [email protected].

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

In this week's episode, I'm joined once more by Paul Avins, an award-winning business growth coach, speaker, and mentor. Paul has been involved in the business buying and selling field for over 17 years. He joins us to talk about acquiring and growing a business and when it's time to exit. We'll talk about what you need to know if you want to buy a business but aren't sure where to start. He also shares his thoughts about entrepreneurs who have held into a business for so long and shares some tips that help business owners create real Shareholder Value.

[00:30] Paul's advice when it comes to hiring staff

[01:50] Paul's thoughts on entrepreneurs holding to businesses for too long

[05:45] Advice to entrepreneurs about selling businesses

[07:50] Why people tolerate businesses they are not passionate about

[10:14] About optimism bias

[11:08] Knowing when to exit a business

[13:00] Why people massively overestimate how much money they need

[16:12] Language of a business

[17:00] Journey to owning a business

[17:35] Advice to people interested in buying businesses but haven't

• At some point, you have to know how much is enough for me to achieve the next level of the game; well, whatever I want to do for myself.
• So if you get the right offer and that's what you want, get out. Well, there is a saying that the best offer is the one that's being presented to you right at that very moment.
• Being a business owner and being anything you want to be successful in life is more about maths than we want to admit.
• The biggest lie we tell ourselves is, I've got time.
• You can replace the money, and you can get your energy back, but you can't get your time back.
• Whatever it is, start today, you know, the great Zig Zigler used to say that you don't have to be great to get started, but you do have to start to get great.

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 [email protected].

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

In this week's episode, I'm joined by Paul Avins, a business growth coach, speaker, and mentor. Paul shares some of the most important things with those who want to buy or sell a business. Paul talks about the most important thing to get a business off the ground. He details how one can develop good ideas for marketing and selling their businesses. He also shares strategies for finding good employees and what matters when selling or buying a business.

[00:00] Paul's grown-up business concept

[02:36] What most people aspire

[03:54] Success According to some people

[04:50] Biggest things where people make mistakes

[05:34] Reasons why vendors associate the value of a business with the number of years they have run it

[05:54] What matters when selling a business

[10:24] Tips for Building Grown-Up business for exit

[11:14] How you value your own business

[12:30] Questions that most people fail to ask

[14:00] How to come up with the best ideas

[18:30] Biggest challenge when you buy a business

• I think some of the biggest robberies in history have happened in boardrooms over pieces of paper, where it looked very innocuous, and people thought, oh, I'm getting a good deal.
• Don't get seduced by the numbers all because you are having a bad month or a bad quarter.
• I often say that your next great idea won't come while you sit behind your desk. Never right. You have to get out of your environment.
• The biggest challenge when you buy a business isn't the P and L stuff. Actually, you can manage all of that. It's actually the people.

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 [email protected].

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

In this episode, I'm joined by entrepreneur John Hood. John and I met many years ago when I acquired a digital marketing agency I was gearing up to sell. By 27, John already had a furniture, distribution, and IT business. We later met in 2019 after he identified Home Improvement and construction as ideal for following my buy and build strategy. John joins us to share his background, how he made his first home improvement and construction acquisition, and possible mistakes in this journey.

[01:33] About John Hood

[02:03] John's background and his first acquisition

[05:21] Business acquisition mistakes made by John

[09:04] How people approach business buying deals

[11.52] John's plans and goals

[16:06] So are you saying that your ambitions have grown?

[17:34] The process of running one's business

[19:04] John's advice to those who want to buy their businesses

[21:00] Reinvesting profit generated from the acquired business

[24:00] Nature of business ventures

[25:55] John's parting shots

• If you don't understand your motive, then your motivation will never be there.
• I haven't quite had the courage to encourage people not to use lawyers because that's got connotations in the future, but we always encourage them to use lawyers.
• I think the first step and the action you want to take is to go out and get the inquiry to provide yourself with the lead, the deal flow, the needs, or whatever you want to call to give you a major choice.

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 [email protected].

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