M&A Due Diligence -The Inside Track - Jonathan Jay 2023

Your free training on how to buy a business without cash is here: bit.ly/4aPsHHU
Are you considering buying an existing business? Do you want to learn how to buy an established company? Check out this informative video on acquiring businesses and developing effective acquisition strategies.
Acquisitions expert Jonathan Jay interviews Johan Goree, the managing director of OnPoint Accounting, who provides invaluable insights into conducting due diligence when purchasing a business.
Johan Goree shares his expertise on analysing financial aspects such as bank accounts, debts, work in progress, and stock levels during the due diligence process. Learn how these factors can impact the negotiation and initial consideration of a business acquisition.
Discover the significance of cash flow management and gain practical insights on optimising expenses, refining employee contracts, renegotiating credit terms, and more.
Johan emphasises the need for up-to-date financial information and modern accounting systems for accurate assessments. Find out how cloud-based accounting platforms like QuickBooks and Xero streamline due diligence, allowing for real-time data sharing and faster decision-making.
When planning to sell your business, it's crucial to prepare ahead of time. Start by discussing your goals with your accountant, including the possibility of adopting Cloud systems. While switching accountants may not be necessary, it's important to ensure that you have accurate and up-to-date management reports.
This way, when entering acquisition deal talks, you can provide relevant information, such as current financial data, rather than outdated accounts from months ago.
As an accountant, Johan addresses the issue of valuing assets and fixed assets. He highlights the importance of verifying the condition, value, and relevance of assets listed on the balance sheet. For items like computers and cameras, which may not last long or have a high resale value, Johan suggests reconsidering whether they should be classified as assets.
Additionally, he emphasises the significance of cash flow in evaluating a business's true value, as it represents the money in the bank that cannot be manipulated.
If you are looking to acquire a business this insightful interview, in which Jonathan Jay discusses the key aspects of business acquisition strategy with accountant Johan Goree, is a must-watch.
Gain valuable insights into the importance of finding an accountant who understands the dynamics of business acquisition, the significance of risk assessment, and the types of businesses to consider for your first acquisition.
Learn how recurring income and subscription models can contribute to long-term success, and discover effective ways to secure financing for future acquisitions.
Don't let fear of the unknown hold you back-take the first step towards building a profitable business portfolio today!

[@theDealmakers]

If you enjoyed this video and would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at bit.ly/4aPsHHU Thank you!

[@steveharman8907]

Another brilliant revision session, thank you Jonathan and Johan...and definitely going to join up once on the DM course with target acquiaitions

[@steveharman8907]

Another amazing line of revision before day 3 of the course...brilliant and thank you Johan...I will be a. Client for sure.!, and thanks again Jonathan

[@eryyahj]

This was a great interview. Thank you so much. I’m looking forward to the mastermind and connect with professionals like this 👍

[@theDealmakers]

Glad you enjoyed it!

[@jasonelles6121]

And I am still procrastinating 😬

[@vildanb8038]

Thank you for helpfully info!!!

[@theDealmakers]

Glad it was helpful!

[@hismajeste6368]

Excellent interview 👍

[@theDealmakers]

Glad you enjoyed it!

[@alberteinstein8959]

Fascinating accounting minds... 📉

[@draethensolutions45]

Another great interview

[@theDealmakers]

Many more to come!

[@bantersantadrinkingfanta]

Hi, I have a couple of concerns preventing me from taking the first step. Firstly, I'm concerned about where to find a reliable team to guide me through an acquisition (I see you recommend a lawyer in your video and mention the need for an accountant, but I'm not 100% sure on who else I might need or where to find them). Secondly, I'm concerned about how much hiring this team will cost on average and how I will pay them without putting money down (can I pay them from profits made from the business I acquire down the line? If the business I'm looking at isn't viable, I understand I'd have to pay for their time myself but I need to know an estimate so I can make sure I have that set aside in case of the worst). Could you help settle these concerns please?

[@steveharman8907]

Watching again and getting ready to come onboard very soon when my deal closes.....but can I ask....when I write the initial consideration and deferred payments contract, is that me writing it or is it the businees I am acquiring.?

[@AmoghHalageri]

A question on leveraged acquisitions part that came up at 28:27, how can you use the acquired business to finance your next acquisition if you already borrowed for that first acquisition based on it's cashflow?

[@theDealmakers]

Because business number one is profitable and you can borrow against those future profits. Repayments are made by business number 2.

[@christeifm2082]

Can we have this accountant details please?

[@AnneLi236]

How do people afford to do DD AND buy the business?? Madness.

[@theDealmakers]

Because you don't need to use your own money - that's the main message on this channel