How to Grow Your Business Fast with Micro M&A

[@sijames9625]

Roland, I am a college student at the moment at the University of Minnesota. This presentation was incredible! Thank you for sharing some of your knowledge.

[@RolandFrasierEPIC]

My pleasure!

[@stern_standard]

Always putting out gold. Thank you

[@RolandFrasierEPIC]

My pleasure.

[@brentparker9527]

Let’s say that the business is asking $100k and you want to do an earn out for 3 years with an additional 15% if KPIs are met. Their ebitda is $50k. Do I have to put anything down?

[@RolandFrasierEPIC]

Brent, of course each deal is different because each seller is different, but my goal is always no money out of pocket. That doesn’t necessarily mean no money down, just no money out of my (or in your case, your) pocket. :) So if you have 3 years assuming that the business doesn’t grow or contract, you’ll have $50k per year or $150k total available from the business’s earnings for it to pay for the acquisition. If you pay a total of $115 ($100k plus 15%) then you’ll be straight cash ahead $35k over those 3 years, and much further ahead with growth. So, in that case with those facts, you would not need to put any money down if the seller agreed to the earnout.

[@officialjaredcurry]

Roland, I'm 21 and I've built a descent size marketing agency for realtors. I can't wait to connect with you one day! I'm looking forward to acquire a business soon, do you have a mastermind program?

[@RolandFrasierEPIC]

Excellent Jared! Congrats on what you’ve done so far and looking forward to connecting with you soon. Yes, we have a mastermind. Hit me up on IG or LI and I can get you details. :)

[@howtolife5276]

How to you feel about capital raising programs or m&a private equity funds?

[@RolandFrasierEPIC]

I think they are great options for people who do not want to get into buying businesses directly themselves.

[@bengleason6495]

Your video is very nice. There is also shown very simple and effective method of finding target clients((Top Tier Coaching Services)) ...............

[@RolandFrasierEPIC]

Thank you, Ben.

[@VolkmerC]

You mentioned it a couple times during your presentation not to use a broker, why not?

[@Toyinsbello]

Those are businesses that everyone else is making offers on so it's very competitive. The brokers are also trying to make money so they want to sell the business for the Highest price

[@RolandFrasierEPIC]

Cedric, exactly what Toyin said. The broker’s job when representing a seller is to create an auction environment to drive the most offers and highest price. That’s the opposite of what we want as a buyer. We want off-market deals with no broker and no competition for our offer to purchase the business. If we are selling then we love brokers. But as buyers, we prefer to avoid them to get the best deals.

[@imthepowerer5000]

So not in or on but above the business, does this mean as a shareholder?

[@RolandFrasierEPIC]

Yes, but not like a passive shareholder in a public stock investment, more like the activist shareholders you see who are holding management accountable and much more involved in the direction of the strategic vision of the business.

[@4GIVENheal]

Dude didnt say nothing! What businesses is he recommending t buy?

[@RolandFrasierEPIC]

That all comes down to determining your acquisition criteria. The businesses I recommend you buy are the ones that meet your acquisition criteria. How to determine your acquisition criteria depends on whether you are acquiring your first business or acquiring a business to solve a specific challenge that your business is facing. So, if you do not already own a business, then ideally you determine what you want to own. Reviewing your interests (hobbies, interests, passions) to determine what you actually will like doing is the first step. After that, determine the strengths, skills and experiences you bring to the table. Then, assess your financial needs and desires and blend those requirements into the mix. Reconciling those three items helps you determine what platform company you want to start with. After that, assessing which of the 7 major business challenges you want to solve for (more leads, team and resources, higher sales, higher customer value, higher profit margins, higher market share and innovation).