'Acquisition Lane' Community (Digital Meetup)

[Keepg01ng]

Greetings Speedsters,

I am finding evidence that this time in history is leading many people to choose to buy a business rather than start on from scratch. Being laid off with some savings, many legacy businesses with no inheritor, popularity of web business exits. I am finding that this is possible for people with as little as $20K in the bank, and even $0 if you learn all the options out there. This suits my situation for a few reasons, the strongest being my work experience with project management...what a project.

I also find that the communities available for this discipline are few and far between. Nearly everyone I know, and so much of whom I read has not touched this unusual track to entrepreneurship. If there is a community, it is typically a highly priced premium community led by an "expert" in the field. Totally respectful of real experts who can help people for money, but I suspect many in this category are, well, not worth it.

There are few books on the subject, though I have now read a couple of these few. I see the potential for a decent community that could have regular live chats, video chat, or simply contributing to this thread.

To kick off, I will present my personal progress and some sources of data that have helped me this far.

Books:

Acquisition:
Buy Then Build -- Walker Diebel ( Fair warning this guy's book is cheap and decent, but it is also a funnel to his ultra premium acquisition "incubator")
How to Buy a Good Business at a Great Price -- Richard Parker (Fair warning that this e-book costs $100, but is excellent and the guy will answer your emails for real)

General 'E' Favorites:
The Monk and The Riddle -- Randy Comisar
The E-Myth Revisited -- Michael Gerber
Crushing it -- Gary Vaynerchuk
Principles -- Ray Dalio
Tools of Titans -- Tim Ferriss

Aside from this forum and some on reddit, I do not see many free communities out there dedicated to Acquisition Entrepreneurship. Please leave your input below and join me in this quest to get this conversation going!

 

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[Kasimir]

I personally love the idea of buying a business. But that doesn't work in all cases, it always depends on the business you want to have. In my mind, the best business to buy is something, which was hit badly due to covid and is missing a real only appearance. Especially if it's a family business and they want to retire. You can get a really great business for $30k. Then taking it online boosting it with some FB ads and then either run it or sell it for at least double the amount or maybe even around $100k.

A critical part I find quite interesting in buying a business are the emotions that can screw everything up. Sometimes it's hard to see the negative side when you're just dazzled by the positive aspects. Here I think it's important to a second opinion on a project. Either a consultant, a friend who knows what he is talking about, or a business partner.

So I didn't get it completely I'm sorry, are you looking to buy a business or what?

Cheers,
Kasimir

 

[Keepg01ng]

So I didn't get it completely I'm sorry, are you looking to buy a business or what?

Sorry If my wording left people guessing:

I am looking to set up a digital community where other entrepreneurs can share their experience, whatever stage they are at, related to their participation in buying a business.

A. Starting out
B. Mid-search
C. Closed a deal
D. Done multiple M&A deals,
E. Left the venture for some reason

Anyone who reads this and has an interest needs simply leave a note and I will work on organizing a digital meeting zoom call or something similar once we build up enough interest.

This could become a recurring thing to check in on progress. We could then document findings here as well.

Thanks!

 

[Keepg01ng]

In my mind, the best business to buy is something, which was hit badly due to covid and is missing a real only appearance.

@Kasimir I think you are saying "online" appearance. Agreed that this is a good move, and finding retirees is a common dream.

I like your statement about buying a smaller price tag business with the plan to scale, especially with less debt on the line. The Covid factor is a real concern as well, but is apparently not affecting the markets as much as everyone thought a few months ago. Good topic for further discussion.

 

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[Kasimir]

@Kasimir I think you are saying "online" appearance. Agreed that this is a good move, and finding retirees is a common dream.

I like your statement about buying a smaller price tag business with the plan to scale, especially with less debt on the line. The Covid factor is a real concern as well, but is apparently not affecting the markets as much as everyone thought a few months ago. Good topic for further discussion.

Oh yeah, sorry I meant online appearance. Yeah, markets aren't that low and the people selling their business through online portals still have quite a high price tag. But it's predicted for example in the UK that there is a chance that 2 out of 3 pubs need to close down. So they will sell their bars for a quite low price, in my mind.

Like your ideas of building a community around buying businesses. Could be converted to a full-time business if you're in consulting and have some experience you could just help people buying the right business.
But are you also in the process of buying a business right now? Or was it just an idea of creating a community?

Always wanted to come to Japan, had it planned for winter 2020/21 but clearly that won't work.

 

[BizyDad]

Not quite what I meant when I suggested you start a progress thread of your own, but ok, I'm here. I've been keeping an eye out for businesses to acquire, but have never gone through the process myself, yet.

You know guys, it might be helpful to other if we link to those progress threads of members who have done acquisition. I think it was this thread that insipre the current one. GOLD! - From 0 To $240,000 Per Year PROFIT In 18 Months

I thought I'd invite @Mike Partee to this party. Mike, you're in the business of business acquisition, right?

 

[Keepg01ng]

But are you also in the process of buying a business right now? Or was it just an idea of creating a community?

Thanks for the feedback everyone, and thanks @BizyDad for inviting @Mike Partee. Sorry if there is still confusion on my intent for the Digital Meetup. The digital meetup would follow some agreement by the folks on this thread that this seems like it is worth our time to schedule a zoom meeting or something, and then make it a recurring thing. Could even be a good podcast one day...

I am no pro. I have never acquired or sold a business. I am simply selecting the project of business acquisition as the path I see fitting my skills and experience. I review listings daily and am in touch with brokers, which is a dicey game but I am learning what seems real vs. fishy.

I struggle to find a community of M&A(vs. startup) minded early-stage-entrepreneurs, but see this as the way to start.

Yeah, markets aren't that low and the people selling their business through online portals still have quite a high price tag.

Kasimir has made some points which are very true, that this fragmented database of "What one could Buy" is often overpriced when viewed online. The distressed business inventory seems to be rising, but then you are getting into a distressed business which you need to turn around.

My target is to find an established business and come to the table with a simple analysis of the deal and find that it will sustain the family and allow me to grow that opportunity over time.

 

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[samuraijack]

Buy Then Build by Walker is a good book. I just sold my business and he was my broker. You do have to keep in mind that he is biased because he works at a brokerage so of course he wants the reader to "buy in" to the thought that its better to buy a small business then to start one. This doesn't mean its not true for certain people though.

Another good book is HBR Guide to Buying a Small Business. I haven't finished this one, but the contents look very similar to Buy Then Build.

I'm also thinking about acquiring a business now that I sold mine. I could potentially leverage my cash for a much bigger business than I originally had. However, I'm very cautious as to what I am actually paying for. In my opinion, most of the time you are paying a premium for the "short cut" of having everything set up for you, not necessarily valuable assets that you can't replicate for less than the purchase price.

 

[BizyDad]

Buy Then Build by Walker is a good book. I just sold my business and he was my broker. You do have to keep in mind that he is biased because he works at a brokerage so of course he wants the reader to "buy in" to the thought that its better to buy a small business then to start one. This doesn't mean its not true for certain people though.

Another good book is HBR Guide to Buying a Small Business. I haven't finished this one, but the contents look very similar to Buy Then Build.

I'm also thinking about acquiring a business now that I sold mine. I could potentially leverage my cash for a much bigger business than I originally had. However, I'm very cautious as to what I am actually paying for. In my opinion, most of the time you are paying a premium for the "short cut" of having everything set up for you, not necessarily valuable assets that you can't replicate for less than the purchase price.

I was hoping you'd show up in this thread. Good tips. I'mma check out that book.

I'mma also tag @MrTrash757 in here, just because...