In this episode, we speak to Ayo Phillips about his journey acquiring a company with a sponsor. We discuss how to expand the business you acquire, the best way to search for a business to buy, and what you should carefully consider before you acquire a business.

Tune in if you want to learn how to find the most lucrative opportunities when buying a small company.

On today’s podcast:

The difference between acquisition entrepreneurship and startup entrepreneurship is that you are buying something that already exists, so you should be reducing your risk profile. In fact, only 1 in 10 venture-backed companies succeed.

It is easy to look at a business from a customer concentration perspective, it is more important to look at a small business from a relationship concentration perspective. This means that even if a certain customer is only 2% of your revenue, you want to understand how relationships are maintained in the long term and it should be sustainable.

You have to hang out where your clients hang out, so when you buy a business make sure that you can afford to do that before buying that particular business.

There is a large opportunity in bringing technology to old school businesses.

A good way to find lucrative companies to buy is to look for industries that are off the beaten path that has not yet been optimized by technology and find a way to glean efficiencies and capitalize on that gap.