Articles on Practicing Entrepreneurship Through Acquisition
I’ve stood in front of rooms full of M&A advisors explaining the acquisition criteria that traditional search funds use to evaluate businesses. And I’ve watched them laugh. Once you start listing the requirements, it’s easy to understand why. Searchers want predictable earnings, recurring revenue, limited
After you have successfully bought a business, you need to have an appropriate amount of working capital to maintain the everyday operations. Working Capital is defined as the amount of cash required to operate a business efficiently.
One of the biggest conflicts that exist within transactions is the type of deal you’re doing – asset sale or stock sale. Buyers typically prefer assets and sellers prefer stock sales. The key for any
If you are looking to acquire a business, the first thing you need to consider is the value of that business. There are many metrics that can help you determine the company’s health before acquiring
Apply to the Acquisition Lab One of the largest pieces of the acquisition entrepreneurship puzzle is financing. Most acquisitions cannot be done without some component of debt being introduced. That being said, there are a
Apply to the Acquisition Lab There is no such thing as passive income. All income costs something: it costs time, it costs money, or both. We cannot pretend that time is free. Let’s discuss a
When evaluating small and medium-sized businesses, your primary goal is to identify areas of risk. You’re analyzing every aspect of business from the financial performance to supplier relationships to employee turnover. Your goal is to
Apply to the Acquisition Lab In my last blog, I compared the concepts presented in my book Buy Then Build: How Acquisition Entrepreneurs Outsmart the Start-Up Game with Robert Kiyosaki’s Cash Flow Quadrant. Most of
Apply to the Acquisition Lab A recent member of our community was talking about how he applied for the Acquisition Lab because he had recently read Robert Kiyosaki’s book, Cash Flow Quadrant, the sequel to
I recently had the honor of interviewing John H. Brown, author of Exit Planning: The Definitive Guide. My goal was to pull out of him his take on exit planning from the buyer’s side. I had a
I live at the intersection of entrepreneurship and private investments. Typically, I approach it from the perspective of an entrepreneur. Most of what I write about — including my book— focuses on what entrepreneurs can
Bill Bonnstetter is the founder of TTI Success Insights, the world’s leading source for research-based, validated assessment tools via their own patented solutions and products. TTI is the administrator and R&D firm behind the assessments
Acquisition entrepreneurship sits at the intersection of entrepreneurship and investing. With the right balance of those two worlds, it’s a field brimming with opportunity. Simply put, acquisition entrepreneurs apply their business-building smarts not to a fresh
I’ve stood in front of rooms full of M&A advisors explaining the acquisition criteria that traditional search funds use to evaluate businesses. And I’ve watched them laugh. Once you start listing the requirements, it’s easy
Codesmith grew from roughly $2.4 million in revenue to more than $18 million. Then ChatGPT arrived. Revenue dropped to roughly $9.6 million, then $5 million as AI hit the software engineering education market that had
In 2016, I bought an e-commerce company with what I thought was a pretty obvious growth opportunity: SEO. There was only one issue. I’d never done SEO. So I started learning. I read about it.
A member of the Acquisition Lab recently found himself looking seriously at a copy-machine business. This was a guy with a technology background. He’d built a startup that went through Y Combinator, had a massive
When we model the sale of a company, we can get incredibly precise. What’s the valuation? How much cash comes off the table? What are the tax consequences? Is there rollover equity? An earnout? How
Redwood trees can grow more than 350 feet tall. How do they get there? They grow up before they grow out. Early in their development, the tree puts its energy toward height. The branching comes
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