Turning $100K into $50 Million Through Business Acquisitions

Рет қаралды 18,979

Walker Deibel

Күн бұрын

Пікірлер: 37

@williammadigan3560 Ай бұрын

Exactly what I was looking for! Thanks!

@ThatGuy_Nick 6 ай бұрын

Is dilution factored in per each acquired company? Are you issuing equity to each acquired company’s former owner? - thank you for the video

@ddfelder2 6 ай бұрын

Hello Mr. Deibel… May this find you well. I just found out about you today. After listening to this video alone, I feel like what I’ve been listening to from other acquisitions influencers (if you will) is baby food… Now I’ve found the meat! I will be purchasing your book to study and checking out your website with the intention of preparing myself to join Acquisition Labs in the near future. From what it sounds like, newbies need to study up and save/raise capital to have some skin in the game 📝 Thank you!

@walkerdeibel-hy5pw 6 ай бұрын

Hi DD, Thanks so much for the kind words. Business acquisition should never have been pushed to “top of funnel” for broad audiences, but because it has there is an abundance of misinformation. It’s hard and lonely, but has immense benefits for those that can walk the path. See you soon, friend!

@jeffreypfitzpatrick 6 ай бұрын

Appreciate your comments! What level do you recommend? i.e. what amount of capital? THX!

@chelseawood4418 6 ай бұрын

Hey @ddfelder2, Chelsea here - co-Founder of Acquisition Lab. I am so glad you find our content to be refreshing. I do feel like there's glamorization happening through social media. It's critical that buyers recognize a few things - 1. buying a cash flowing business doesn't mean it's always consistent cash flow which means there COULD be times when you need to put some money into your business so it's important that you have access to your own capital or some alternative capital source and 2. After you buy a business, you're not super attractive to lenders so it's hard to get cash when you need cash. I wanted to respond to your comment while also answering @jeffreypfitzpatrick's question - you need to have at least 10% of your own money for a down payment (even if the structure doesn't require you to use it all as a down payment you should plan to have it) and 3-15% of the purchase price left over after your down payment to meet post close liquidity requirements - budget for 8%. You also want to budget for 20k in fees as a minimum. Hopefully this helps give some context.

@ddfelder2 6 ай бұрын

@@chelseawood4418 Hi Chelsea! Thank you so much for responding. Both of the answers helped me greatly. It gives me more clarity on what I need to be working towards in order to prepare for the journey and work ahead. Thank you all for being forthright… no click bait, just straight real world experience and facts.

@patrickglaze9712 5 ай бұрын

Hey Chelsea! What would be the best way to get in contact with AL to try and start building an acquisition portfolio?

@JaridOrgeron 3 ай бұрын

So I’ll have $100K to play with shortly and would like to do something like this. What’s your consulting fee? I’m not new to business or marketing, I have multiple LLC’s and run an insurance and marketing agency.

@Frank.V.Bakovich 3 ай бұрын

How long should an individual be able to build a 50MM valuation?

@Nangman66 3 ай бұрын

If this is backed by an SBA loan then the seller would need to be signer of the personal guarantee which they don't want to be...

@AlvaroDalCanton 6 ай бұрын

Hello, thanks for the awesome video! There’s one thing that’s not clear to me. You create 1 newco for every business you acquire (and you own 80% of each) or there’s only one newco owing 80% of everything? 15:48

@svenmilder 5 ай бұрын

Exactly. Same point. In this example it was illustrated that 20% rolls over to NewCo and 80% gets financed. That works fine for the first business. But for the 2nd, 3rd, 4th. I assume the 20% value of the business gets rolled over to newco. If that is the case, multiples arbitrage gets less with each business that joins newco. Or does the owner keep the 20% in their own business and later at sale of group additional gets distributed? Walter?

@chriskono793 6 ай бұрын

With the first acquisition it’s clear that can get a SBA loan…what about companies 2-10? Can you discuss how lenders may or may not need to change for the later acquisitions? Thanks!

@chelseawood4418 6 ай бұрын

Hey @chriskono793, Chelsea here - co-Founder of Acquisition Lab. Growth financing for cash flow positive businesses is actually much simpler than an individual buying a business. Many lenders will finance growth at very favorable terms because they're lending on new combined revenue & earnings. There are times when the lender will finance 100% of the growth through acquisition strategy because the combined cash flow is so strong.

@JayLupe 4 ай бұрын

I wanna buy a construction business in the near future

@jzk2020 2 ай бұрын

Damn this sounds like some next level shit.

@juaneventer Ай бұрын

😂😂😂😂

@Technicallyimright 4 күн бұрын

Bull*shit.

@HandsOnRealEstate 3 ай бұрын

SBA many times collateral lies your personal home and it requires a personal guarantee which is more risky 😅

@BuyThenBuild 3 ай бұрын

A primary home as collateral isn't required in every state but, yes. A PG is same as cash to me... except you don't need the cash. "More" risky? Maybe. It depends if you are buying the right business or not and if you have the right mindset and drive to actually run a business. Most don't. Thanks for your comment, you are not "wrong," I just chose a more nuanced position, and have had a lot of success with his model.

@PitmanLucy-m3h 2 ай бұрын

Hirthe Greens

@audreyw. 6 ай бұрын

If you're buying 10 companies to get to the proposed 50 million exit, you need $100K x 10, not just $100K. I don't think coming to a seller with $10K is going to be enough skin in the game.

@BuyThenBuild 6 ай бұрын

Hi Audrey, one you own the first company the subsequent acquisition financing will come from the cash generated by the business.

@bl9726 6 ай бұрын

Walker you did not answer why seller will do this ?

@BenDebayle 6 ай бұрын

A seller would do this because the equity he retains (20%) would give him an opportunity to make even more money. If he sold 80% of his business now for $3.6m (instead of the full $4.5m his business is worth) and the roll-up strategy was successful and sold, his 20% would be more valuable than it is today since the multiple it would be sold at (7.5x) is higher than he could sell it for today (4.5x).

@AlvaroDalCanton 6 ай бұрын

He’d get an extra 20% when I eventually sells

@chelseawood4418 6 ай бұрын

Hey @bl9726, not all sellers will agree to it but what Ben laid out down below is why they will.

@Jramski 4 ай бұрын

@@BenDebayleBut how can you do this 10 times if each time you're giving the new seller 20% equity in the new coat. You can only do that five times and then you have no equity 5 sellers it's getting 20% equity equals 100% equity of the new co.

@BenDebayle 4 ай бұрын

@@Jramski They retain 20% equity only in their business. So let’s say you bought 10 companies for $1m each and each seller retained 20% which would equal $200k. So in total, all the owners would own $2m of the $10m, which is 20%.