The Buy Then Build Blog

Practicing Entrepreneurship Through Acquisition

Category: Uncategorized

What Every Buyer Needs to Know About Working Capital

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

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Asset Sale and Stock Sale: Definitions, Differences, and Advantages

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

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Business Impact: The Invisible Driver of Business Value

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

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Can We All Admit There’s No Such Thing as Passive Income?

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,

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How to navigate customer concentration in an acquisition

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

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What Makes A Good Side Hustle?

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,

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Exit Planning increases business value

How Proper Exit Planning Benefits The Buyer And Seller

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

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Private Equity Entrepreneurship

What Private Equity Can Learn From Entrepreneurs

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

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