#177 Business Buying Strategies Podcast

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

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 johnandrews.deallawyer@jmw.co.uk.

Ready to get started?

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

Download our free 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 hello@thedealmakersacademy.com 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

Business Buying Strategies from The Dealmaker's Academy

enFebruary 29, 2024

Deal structures for buying a business with John Andrews

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enFebruary 22, 2024

What to look for when buying a business

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enFebruary 15, 2024

Are you making any of these business buying mistakes?

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enFebruary 08, 2024

Building a £400M empire through business acquisition

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enFebruary 01, 2024

Gerald Ratner - Business Acquisition is the ONLY way to grow

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enJanuary 25, 2024

How to negotiate buying a business

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enJanuary 18, 2024

Buying a business - Using the right words

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 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enJanuary 11, 2024

2023 Dealmaker Highlights of the Year

This year, we have featured more business buying success stories than ever before.

Buying a business transforms your life. You just need to hear the stories of those who have follow the system and taken action to know that you can do it, too.

The stories we have featured on the Business Buying Strategies podcast range from experienced business owners using acquisitions to rapidly grow their business to individuals holding down a 9-5 job who transformed their life by buying a business in their spare time.

In the latest episode of Business Buying Strategies, we look back at some of the major client wins and business buying success stories from the last 12 months.

2023 has been a great year for business buying entrepreneurs. But 2024 promises to be even better.

If you are thinking about acquiring a business in 2024 and want to feel inspired, listen to this episode and discover how people – just like you – transformed their lives by buying a business.

Here are the key highlights:

How Alison acquired a business in a sector she knew little about (and saved £100,000 on a bad deal, thanks to her Mastermind group)

How David tried to grow his business organically for years yet added more revenue in one “no money down” deal than he achieved in 12 months

How Darren built a group of profitable hair salons without spending any of his own money (and one owner even paid him £20,000 to take the business off her hands)

How Dan successfully acquired an eight-figure business without using any of his own funds

How Danny acquired businesses in sectors he knew nothing about by following a proven business buying system (which is entirely possible when you shift away from an “operator” mindset)

** 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.thedealmakersacademy.com/free-book-giveaway

Get a FREE copy of my book:

Join the Business Acquisition FastTrack course

Business Buying Strategies from The Dealmaker's Academy

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.

enJanuary 04, 2024