Business Buying Strategies from The Dealmaker's Academy

In this week's episode of the Business Buying Strategies podcast Jonathan is in conversation with James Khan, renowned for his time on Dragon's Den and his expertise in business acquisitions.

James shares his journey from starting a small recruitment business to building Alexander Man into a global leader in talent solutions, emphasizing the strategy of 'buy and build' for achieving scale. He discusses the importance of not taking on too much personal risk during acquisitions, the value of due diligence, especially regarding cultural fit, and his approach to financing deals without jeopardizing personal assets.

James shares the lessons he has learned from a failed venture in Benjy's, a sandwich shop business, and underscores the critical importance of understanding the business sector you're entering into.

The episode provides valuable insights into building a successful acquisition strategy, the pitfalls to avoid, and the significance of integration post-acquisition.

Key moments

00:51 Special Episodes: Behind the Scenes at Marbella Retreat 01:14 Introducing James Khan: A Business Buying Expert 02:06 James Khan's Journey: From Recruitment to Global Success 03:28 The Strategy of Buy and Build 06:31 Financing Deals Without Risking It All 11:29 A Deep Dive into a 12 Million Pound Acquisition 15:04 The Importance of Due Diligence and Cultural Fit 17:54 Learning from Failures: The Benji's Sandwich Shop Story 21:51 Minimizing Personal Risk in Business Acquisitions 23:10 The Art of Successful Business Integration

** 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 [email protected].

Ready to get started?

Here's how you can start your business buying journey…

Download our free Business Buying Toolkit

https://dealmakers.co.uk/business-buying-toolkit

Join our Business Acquisition FastTrack programme

https://www.dealmakers.co.uk/fast

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 [email protected] for more information.

Connect with Jonathan Jay at:

Website: https://www.dealmakers.co.uk

LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/

YouTube: https://www.youtube.com/c/TheDealmakersAcademy

The Power of Action in Business Acquisition

The difference between success and failure in business acquisition is not about how much you know. What stops most people from buying their first business is their mindset and belief.

You can watch hours of YouTube videos, listen to hundreds of podcast episodes, and attend countless M&A networking events, but none of it has any value unless you take action.

In the latest episode of the Business Buying Strategies podcast, listen to Jonathan Jay's keynote speech from our recent Dealmakers Marbella Retreat, in which he discusses the power of action.

In the episode, Jonathan reveals his journey of selling his publishing company, why belief matters, what it takes to move from inertia to momentum, why your environment matters and the role of attitude in business acquisition.

If you have been procrastinating and delaying getting started, we recommend you listen to this episode. It could provide you with the kickstart you need.

Here are the key highlights:

01:16 Jonathan's story of selling his publishing company

02:10 How Brian Tracy Influenced Jonathan's self-development

05:22 Why belief is a superpower for business buyers

06:27 Why your language and thoughts may actually be imposter syndrome talking

06:56 How selling a business transforms your life

07:59 Why it is important to try – even if you fail

08:46 Why detachment is your best strategy in a vendor negotiation

09:27 How education contributes to your success

10:05 Why getting involved is a key indicator of success

11:42 How your environment and who you surround yourself with matters

13:24 Why attitude is foundational to business acquisition success

13:59 Why the sky is the limit with effort and focus

19:20 How to overcome inertia and build momentum

In this episode, you will discover:

• How selling his publishing company transformed how Jonathan thought about buying and selling businesses
• Why you need to think A.C.T. if you want to build momentum in your business buying
• Why your environment matters if you want to continue to level up your thinking (and the benefits of surrounding yourself with success)
• How an enlightening encounter with Brian Tracy influenced Jonathan's personal development
• Why imposter syndrome holds so many dealmakers back (and how it shows up in ways you don't expect)
• Why you need to be detached emotionally when you negotiate with vendors (and why deal flow is key)
• How to move from inertia to momentum (and keep your momentum going)

** 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 [email protected].

Ready to get started?

Here's how you can start your business buying journey…

Download our free Business Buying Toolkit

https://dealmakers.co.uk/business-buying-toolkit

Join our Business Acquisition FastTrack programme

https://www.dealmakers.co.uk/fast

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 [email protected] for more information.

Connect with Jonathan Jay at:

Website: https://www.dealmakers.co.uk

LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/

YouTube: https://www.youtube.com/c/TheDealmakersAcademy

What size of business should you buy first?

In the latest episode of Business Buying Strategies, Jonathan Jay offers guidance to first-time business buying on some key decisions to make when targeting their first acquisition.

Jonathan highlights elements to consider such as business size, owner involvement, business location, and the time commitment for the acquisition. He stresses the concept of not buying a business for just one pound, given the assumed liabilities can be burdensome, especially for first-time buyers.

Jonathan recommends buying a solid, profitable business and using other people's money instead of taking on a distressed business. He also suggests strategies for negotiating, understanding the seller's motivations, managing the risks involved, and thinking about the business's exit strategy from the beginning for a more profitable result.

If you are about to start your business buying journey, this episode will give you all the answers you need to these important questions.

Here are the key highlights:

00:00 Introduction to Business Acquisition

01:09 Guidelines for Your First Business Acquisition

03:30 Location Matters: Where Should Your First Acquisition Be?

05:02 Time Commitment in Business Acquisition

08:28 The Pitfalls of Buying a Business for One Pound

11:33 The Ideal Business for Your First Acquisition

16:57 Negotiating a Deal: The Power of Words

24:03 Golden Rules of Business Acquisition

Here is what you will discover…

• Why you should avoid making owner-managed businesses for your first acquisition (who do you think is going to fill that void when they leave?)
• Why everything gets harder if you get your first acquisition wrong (it's why this is such an important decision)
• Why it's vital to figure out the cost of replacing the owner-manager with a manager paid market rate
• Why the million pound revenue mark is a good indicator for business buyers
• Why buying a business in another country as your first purchase is not a good idea (you're buying a lot of inconvenience for your first deal)
• How shopping local is a good idea for acquisition entrepreneurs when starting out
• Why it is realistic and entirely possible to buy your first business while working a 9 to 5 (in fact, business owners prefer to speak out of hours)
• Why you need to switch your mindset from doing everything to leaning on your Deal Team to work through the process (the sooner you do this, the faster your progress)
• Why buying a bigger business actually gives you more time rather than less (you're buying a working infrastructure with a bigger business)

** 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 [email protected].

Ready to get started?

Here's how you can start your business buying journey…

Download our free Business Buying Toolkit

https://dealmakers.co.uk/business-buying-toolkit

Join our Business Acquisition FastTrack programme

https://www.dealmakers.co.uk/fast

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 [email protected] for more information.

Connect with Jonathan Jay at:

Website: https://www.dealmakers.co.uk

LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/

YouTube: https://www.youtube.com/c/TheDealmakersAcademy

In the latest episode of the Business Buying Strategies podcast, experienced M&A lawyer John Andrews of JMW reveals the most effective deal structures for buying a business without using any of our own money.

John is The Dealmakers Academy's recommended lawyer and has completed deals with many of our Mastermind clients.

In this podcast episode – recorded at the last Dealmakers M&A networking event in Manchester – John walks through the specifics of the dealmaking process from a legal perspective.

Robust legal due diligence is essential to ensure you protect your personal assets and limit liability. Understanding the legalities involved with buying a business is important, and John talks on a broad range of topics from working with a M&A lawyers, structuring the business the right way, differences between types of purchases, warranties and indemnities and due diligence.

If you have not yet purchased your first business or you are looking to start acquiring businesses soon, listen to this episode so you have a good understanding of the legalities involved.

Here are the key highlights:

01:11 Why it is important to understand the legalities of buying a business

01:27 An introduction to John Andrews

02:37 The importance of a good M&A lawyer

02:49 The role of a commercial lawyer

04:19 Ways to structure your business for acquisition

08:33 The importance of a shareholders agreement

10:25 The differences between a share purchase and asset purchase

15:42 Understanding warranties and indemnities

17:19 Why it is important to do your due diligence

18:30 How to structuring deals for success

Here is what you will discover…

• What the best company set-up is for a business acquisition (and the company structure you should always avoid)
• How to structure holding companies the right way (this is essential to protecting your businesses)
• The difference between an asset purchase and a share purchase (and when to use each one)
• Why an asset purchase is far less risky than a shares purchase
• Why a shareholder agreement is one of the most important documents you need if you have a partner/partners (make this a priority today)
• What you need to put in your Head of Terms to avoid costly issues later in the process (that could even cause a deal to collapse)
• Why it is a bad idea to cut corners with due diligence
• What the right time is to bring in legal support during the process
• Why a lack of real M&A experience on the part of the vendor's lawyer can kill a deal (and how to avoid it)

** 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 [email protected].

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 [email protected] for more information.

In this week's episode, Jonathan shares his insights on successfully buying a business. He discusses a recent networking event held in Manchester, where he presented common mistakes buyers make and rules to follow for a successful acquisition.

Jonathan explains that you don't need a massive bank balance or perfect credit to buy a business, but instead having multiple options, substantial knowledge, confidence, and right mindset can lead to a successful deal.

You will learn about:

• The four golden rules of business acquisition to getting a business without risking personal assets.
• Why you should never use your own money.
• Why you should never run the business personally.
• How to avoid personal risk.
• How to plan your exit early.

He emphasizes the importance of moving fast during the acquisition process and being surrounded with positive people who can provide support. He concludes by informing about their Dealmakers Retreat event in Marbella.

00:44 Recap of Recent Networking Event 01:05 Insights into Business Buying 02:06 The Importance of Networking and Learning from Others 02:47 The Concept of Buying a Business Without Risking Your Own Cash 03:48 The Two Groups of People This Presentation is For 04:46 Follow-up Resources and Recommendations 06:14 Jonathan's Personal Journey in Business Buying 12:06 Golden Rules of Business Acquisition 17:10 Planning Your Exit Strategy 18:30 Understanding the Current Economic Climate 20:31 The Power of Negotiation and Seller Motivation 21:32 The Importance of Speed in Acquisition 22:17 Debunking Misconceptions about Business Acquisition 23:41 Why You Should Avoid Business Brokers for Your First Deal 25:16 Financing Methods for Business Acquisition 26:10 Overcoming Obstacles in Business Acquisition 27:27 The Power of Networking and Community 28:39 The Dealmakers Retreat: An Opportunity to Learn 30:18 Leveraging LinkedIn

** 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 [email protected].

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 [email protected] for more information.

In the latest episode of the Business Buying Strategies podcast, Jonathan Jay reveals some of the most common business buying mistakes we see new and inexperienced business buyers make. (And many experienced dealmakers, too!)

Many of these mistakes can seriously damage your ability to source deals, negotiate the best price and terms possible and can even stop deals in their tracks. What's more, many of these mistakes can be easily avoided.

Listen to the Business Buying Strategies podcast today and discover whether you are making any of these 12 most common mistakes when it comes to buying a business.

Here are the key highlights:

01:17 The Pitfall of Using Your Own Money 02:43 The Art of Financing a Business Purchase 04:48 Avoiding the Trap of Buying a Job 05:51 The Danger of Overpaying for a Business 08:46 The Importance of Understanding the Business You're Buying 10:44 Balancing Your Day Job and Business Buying Journey 12:54 The Power of Thinking Big in Business Buying 15:42 Assembling the Right Team for Your Business Purchase 17:34 The Importance of Cash Flow in Business Buying 20:26 The Risks of Buying an Underperforming Business 23:10 Understanding the Seller's Motivation 25:56 The Importance of a Company's Reputation 27:46 The Crucial Role of Due Diligence in Business Buying

Here is what you will discover…

• Why buying a small business is the same effort as buying a large business (but can leave you with more stress, worry and sleepless nights…)
• Why you must never sign a personal guarantee (unless you want to risk losing your house or other personal assets…)
• Why putting your own money into a business acquisition is a huge risk (even if you have money in the bank)
• Why there are so many better ways to finance a business acquisition that don't involve using your own funds
• Why not putting your own money into a deal will always create a better deal in the end (this may surprise you)
• Why you should never take a vendor's unwillingness to negotiate at face value (it's amazing to see how quickly this can change under the right circumstances)
• Why buying a business in a sector or profession you understand will shortcut your journey (and take weeks and months off your learning curve)
• The No.1 thing every business buyer wishes they had done for their first deal (so you don't make the same mistake)
• Why you must never cut corners when it comes to building your deal team (getting this wrong is a recipe for disaster)
• Why you must avoid buying a distressed business at all costs as your first acquisition
• The one thing you need to discover from the vendor that makes all your negotiations simpler (and could close the deal in a fraction of the time)

** 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 [email protected].

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 [email protected] for more information.

In the latest episode of the Business Buying Strategies podcast, Jonathan Jay talks with Mastermind client, Martin, who has ambitions to build a £400m empire through business acquisition.

In addition to hearing Martin's journey from his first acquisition – shortly after completing the Mastermind programme – to his latest, this episode is packed with insights on how to put the systems and processes in place to source deals, negotiate the right way and create a strong lead flow.

In particular, Martin's business coaching approach is a great example of developing creative ways to work with vendors to give them the valuation they want while acquiring businesses that you know have strong foundations.

Also in the episode, Martin shares his experience of rapidly buying businesses and integrating them into his existing portfolio.

Martin's control of negotiation conversations coupled with his consultative selling technique and risk-taking attitude form the core of his success. He encourages would be dealmakers to overcome their fears and take fast, significant action to achieve their goals.

Listen to this episode and you will gain a fresh insight on how to work with vendors to get the deals you want and what it takes to work towards building a group with a £400m valuation.

Here are the key highlights:

02:02 Martin shares his journey into business acquisition

03:32 He explains his strategy of buying accountancy firms

03:36 His first acquisition and rapid expansion

06:10 Martin's unique approach to business valuation

06:42 The Pipeline Strategy – how Martin coaches businesses to increase their value

06:50 The importance of the consultative selling approach

11:02 Why authority has power in negotiations and why you need to be in control

24:25 Why it is important to fail fast and take massive action

27:07 Why Martin's approach has been so successful

Here is what you will discover…

• How Martin started on his journey into business acquisition (and what you can take from his experience)

• The acquisition strategy Martin uses to buy accountancy businesses in his quest to build a £400m group (and why it's important to have a strategy and end-goal)

• How he bought his first business and why speed is important to meeting his objectives

• Why you should never be a slave to the expectations of the vendor (and why it is key to have your own process for valuing a business from the start)

• Why choosing the right management team can help you grow even faster

• Why you need to have a criteria for choosing the right type of business (and avoid building a portfolio of businesses that rely upon your attention and focus)

• How Martin uses a unique strategy to build his deal flow that involves coaching businesses to achieve their target valuation (then buying them from the vendor)

• Why using a consultative selling approach has proved effective for Martin (and why educating the vendor is so important)

• Why dealmakers need to build authority early and take control in negotiations (if you want to get the deal you want)

• Why taking action and not being afraid of failure gives Martin an advantage (and why he recommends this approach for any dealmaker looking to build a group)

** 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 [email protected].

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 [email protected] for more information.

How Gerald Ratner built a 2,500-store retail empire through acquisition

British entrepreneur Gerald Ratner took his business from a single family-owned shop in Richmond to a multi-billion, 2,500-store retail empire spanning the UK and US.

In the process, he acquired some of the biggest names on the high street, including H. Samuel and Ernest Jones.

His entire strategy was built on growth by acquisition, often pushing the business to the limit.

You may have watched some of the recent video highlights from my interview with Gerald for my Mastermind clients.

On today's episode of the Business Buying Strategies podcast, you can listen to the whole interview where he detailed exactly how he grew the business at each stage, including the creative ways he raised funding and persuaded the owners to sell to him.

You will discover…

• How Gerald used acquisition as a strategy to dominate the high street by buying his key competitors
• How buying H. Samuel transformed the group and allowed the retailer to expand its customers beyond its historical base
• Why Gerald's reasons for acquiring Ernest Jones was more than simply adding another 60 stores to the portfolio (it was a strategic move to "buy into" supplier relationships)
• Why Gerald chose not to copy his acquisition strategy when expanding to the US (and what he did instead)

What he really said in his infamous speech at the Royal Albert Hall that no one remembers

** 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 [email protected].

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 [email protected] for more information.

De-risking Business Acquisitions: A 12-Step Guide to Successful Deals. In this episode, Jonathan Jay shares strategies for buying a business successfully, without risking personal cash. He elaborates on the importance of proper corporate structure, no personal guarantees, de-risking leases, and linking business payment to performance. Jay also explains the significance of not over-leveraging, cost underwriting abort fees, due diligence, and incentivizing owners for a smooth transition among other things. He illustrates these points with real-life examples and emphasizes the ultimate aim - to de-risk deals and ensure a better night's sleep for business buyers. 00:34 Introduction and Upcoming Events 01:25 De-risking Business Acquisitions: Part 1 01:55 Importance of Corporate Structure in Business Acquisition 04:31 Avoiding Personal Guarantees 07:52 De-risking Leases in Business Acquisition 11:48 Linking Payment to Business Performance 16:00 Avoiding Over-leveraging in Business Acquisition 26:55 Dealing with Distressed Businesses 32:33 Ensuring Smooth Transition Post-Acquisition

** 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 [email protected].

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 [email protected] for more information.

The words you use during a negotiation to buy a business can make the difference between closing a great deal and failing to close any deals.

Use the right language and you will discover the vendor's motivation, build trust and clear the path to a smooth sale at the best price. Use the wrong language and you could sabotage the acquisition – or, worse, end up with a bad deal.

A few weeks ago, I was invited to speak to a group of property agents who are planning to grow in 2024. I showed them how they could double their agency within six months by growing their business through acquisition – and only those Dealmakers who know how to negotiate and use the right language will secure great deals at the best price.

You will discover…

• Why the words you use when you negotiate could be the difference between a good deal and no deal
• Why you must never, ever be the first to make an offer during a negotiation (do this and you will never recover)
• The one question to unlock the path to a great deal and guarantee the vendor is on board with closing a deal quickly
• The most powerful phrase to use during the acquisition if things get a little bumpy (I guarantee this becomes your "go to" phrase in your future negotiations)
• What you should never do when the owner gives you a price for the business (forget this and it's game over)

Here are the key highlights:

01:29 The Magic Words That Make You Millions 04:35 The Art of Negotiation: Never Go First on Price 07:10 Reacting to the Seller's Price: The Importance of Body Language 10:40 Avoiding the Valuation Trap 15:01 Understanding the Seller's Motivations and Painting a Picture 18:04 Identifying Motivated Sellers 19:59 The Importance of Motivated Sellers 20:43 Avoiding Business Brokers 21:59 The Power of 'No One is Lending' 22:15 The Advantage of Using Other People's Money 24:18 The Speed of Business Acquisition 24:57 Asset Purchase vs Share Purchase 25:48 The Importance of Having a Clear Process 27:33 Expanding Your Business Portfolio 33:03 The Power of 'Is That a Deal Breaker?' 38:23 The Magic Words That Make You Millions

** 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 [email protected].

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 [email protected] for more information.