Practicing Entrepreneurship Through Acquisition
Having access to SBA loans to help fund your business acquisition and build your wealth is one of the best financing opportunities available to you. Prior to 2018, there wasn’t a financing option available to most buyers that allowed them to get access to profitable businesses at a fraction of the cost, with affordable rates
90% of people who look at buying businesses never do. Why? To put it simply, they haven’t gone into the search process with the right mindset. Although people are attracted to the prospect of buying businesses for the opportunity it provides in building wealth, often they know so little about the landscape of acquisition entrepreneurship,
There’s no better way to build personal wealth than to buy a business. Baby Boomers are retiring in droves, many of them ready to exit profitable businesses they’ve built over the last few decades. And now, since 2018, you can now use SBA-backed loans (with up to 90% financing) to acquire a business. That said,
As you move forward on your journey as an acquisition entrepreneur, you might come across the term Indication of Interest (IOI). What does it mean, and how is it used? Although it sounds very similar to Letter of Intent (LOI), which is what people most commonly hear about, an LOI and IOI are not the
“A business owner is only going to sell if they’re at a point of distress.” A student in a class I taught recently said that. Do you agree? This is actually a common misconception people have – that business owners would only sell if they’re in dire straits. This could certainly be the case, but
In an ideal world, we would be able to finance our business acquisitions purely through cash. We wouldn’t have to obtain financing, complete all the paperwork, maintain good credit, and delay the acquisition process even further. That said, in most cases, people use financing of some sort to afford a business purchase. Whether it’s the
One of the biggest questions we get in the Acquisition Lab is whether you should dedicate part-time or full-time effort to searching for a business to buy. Is it like a side gig, where you can dedicate a couple hours in the evening to find your perfect business? Or do you need to go full
“Is it a fair multiple?” This is one of the biggest questions we get with first-time business buyers in the Acquisition Lab, and it’s a great question. We all know that the return and value we’ll get from a deal largely depends on the numbers we agree to up front. Regardless of the inherent value
The textbook definition of retirement is “no longer being part of the workforce and living off of savings and investments.” When you retire, instead of working, now you can finally focus on leisure and enjoying life the way you want. Isn’t that what we think of when we envision retirement? We know, in theory, that
Usually when I talk with entrepreneurs about acquisition entrepreneurship, I get a lot of blank stares and raised eyebrows. Why? Because acquisition entrepreneurship doesn’t follow the traditional way of thinking about business ownership. For one, most entrepreneurs believe that entrepreneurship is solely in startups, but that’s completely untrue and I’ll explain why soon. Today, I’m
