Practicing Entrepreneurship Through Acquisition
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. I think it’s important to note that working capital can be something that your financial due diligence team supports as
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 acquisition entrepreneur is understanding the big differences between both these types of sales. In this piece, I’ll help you navigate
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 it. These may include financial history, management, owner’s involvement, customer diversity, competition, relationships, and sustainable growth in revenues. While financial
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 variety of shapes that this can take but the focus of this article is talking about what I’ve learned in
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 different framework to navigate this path. Earliest Pursuits of Passive Income Early in my career after acquiring my first company,
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 identify potential red flags that could threaten the success of your acquisition. According to Forbes, one of the very first
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 our articles emphasize the benefits of buying an existing business over starting one. These include the ROI, margin of safety,
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 the national bestseller, Rich Dad, Poor Dad, which just so happens to be the best-selling personal finance book of all
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 theory, and in our conversation, I found that great minds think alike. Conceptually, exit planning from a seller’s perspective makes
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 learn from the private equity business model. That said, as I recently prepared to speak at the Alliance of Merger
