Відео

I know eh!!!!

Awesome, thank you! you helped me get to 6000 subs! thanks for the support.

Thanks! thanks for watching.

All true. Falling knife metaphor - interesting. I think Intuit will have something to say, they seem to adjust faster and faster. (full disclosure - I used to work there - they took forever to get Online QB but since then...they are moving fast)

You mean the need for working capital? ua-cam.com/video/ds2tb4_d9GU/v-deo.html

Not easy. Just lots of digging. 3 Strategies: 1. For ON market, keep sifting through all the broker sites, www.dealflowsystem.net/top100, even Gottsman, Woodbridge, use KairoData's scraping tool. 2. If that is not enough. time for OFF market. You can with email 1000's or direct mail them. My suggestion, email, call email or mail, call, mail. This works with the Law of Large numbers. 3. Then start making friends with the gatekeepers: Centers of influence, working on relationships with wealth managers, accountants, attorneys. How to get in with gatekeepers? Simple: Show Up Consistently - Not once, but often. Be that name they remember. Deliver Value - Share insights they actually care about. Prove You Can Close - Show you’re not just talk. Once they see you close, you’ll be their go-to. No relationships? No referrals. No exceptions.

Here’s a general breakdown (range): Accountants Basic Financial Due Diligence Includes high-level review of financial statements, identifying red flags, and cash flow analysis. Cost Range: $5,000 - $10,000 In-Depth Financial Due Diligence Includes detailed analysis of all financials, tax implications, working capital, and quality of earnings (QoE) report. Cost Range: $10,000 - $50,000 Full QoE Report For a thorough Quality of Earnings (QoE) report, especially if the business has complex financials or multi-year data to analyze. Cost Range: $15,000 - $60,000+ Attorneys Basic Legal Due Diligence Includes review of major contracts, leases, and basic compliance checks. Cost Range: $5,000 - $15,000 Moderate Legal Due Diligence Includes review of all contracts, employment agreements, intellectual property, and possible litigation. Cost Range: $15,000 - $40,000 Comprehensive Legal Due Diligence Includes everything above plus detailed labor, regulatory, IP, and environmental compliance checks. Cost Range: $30,000 - $75,000+

thanks Holli.

yes, yes it does.

Yea, I guess they don't do a lot of self checking in those parts.

Much appreciated

No thanks, I used to outsource it. But brought it back internally.

Great question, and if I understand what you are asking, tell me if I am wrong, short answer, you buy cash flow. Long answer, When buying a business for its customer base and future cash flow, the primary goal is to retain those customers and keep the revenue stream steady. However, depending on what you uncover during due diligence, there could be opportunities to improve how they were previously serviced. Whether it's better support, new product offerings, or streamlining operations, any enhancement should focus on increasing customer satisfaction and loyalty without disrupting the core value that attracted them in the first place."

@@JonStoddard thank you. I was also thinking about how AI would mean delivery/ops is automated as you point to. IMHO, the winners in the sector may be those who win the AI implementation game.

@@JonStoddard fantastic, thank you. I have been chatting to buddies in the space here in the UK and the market is nuts here at the moment I am told - multiples of 6 to 12x.

Holli sound million dollar sound bites, 1. "Due diligence, due diligence, due diligence." 2. "If it's too good to be true, it's not true." 3. "Excessive hiding is not appropriate." 4. "10 to 30 percent of the transactions have fraud" 5. "changing accountants is a signal..." 6, "Disciplined businesses get paid."

There are two main approaches to finding motivated sellers (or 'growing crops' as you put it): 1. The Law of Large Numbers: If you're going the route of direct outreach, like mailing campaigns, you need to think in large volumes. For example, mailing 5,000 people gives you a much better shot at finding a motivated seller simply because the numbers work in your favor. It's a statistical game. 2. Centers of Influence: This involves building relationships with key people like wealth managers, accountants, attorneys, etc. These professionals can connect you with motivated sellers, but it’s important to build a genuine relationship first. They won’t be inclined to help unless you’ve added value to them and built up goodwill over time. Make sense?"

@@JonStoddard an advice coming from a wise experienced person. I just stopped attending to Toastmasters but it was a good club to get relationships. I will keep in mind it and execute it. I was printing letters like an hour ago lol.

We will see. Some investors see it the same way you do, Brad Jacobs, others do not. Its not a profession that can be taken over 100% by AI. First GIGO - garbage in garbage out. Next, the numbers don't mean anything unless you can piece it together to tell a story about the business. But...we will see.

You ask for Adjusted Financials, examine Add-Backs, Review Tax Returns and Financial Statements, and maybe...if it warrants it Conduct a Quality of Earnings (QoE) Review. End of day Use a Valuation Multiple Based on Adjusted Earnings - this is part of your deal team

correct

It did. Its taking off faster than average, Views & CTR & engagement. So bring the people what they want! Thanks for doing the show.

Sure?

indeed

2.5 years later...patrickdichter.com/the-half-way-point/

Glad you enjoyed it!

You're welcome sir!

Yes! It can happen, I have seen it but its rare, rare, rare. You have to put yourself in the sellers shoes. If I am seller and I have a 10 year old, $5 million dollar business, enduringly profitable, I have 5 other offers on the table full asking price, why would I take your 100% seller finance deal...

That's why its called "The Shocking Truth" Gurus will charge you $1000s to learn how to do it. But it in reality, Its rare (1 in a 10,000 rare) because its too risky for the seller.

When you're acquiring your first business, the financing structure typically involves a combination of a down payment (cash you've saved or raised from investors), SBA 7(a) financing, and maybe some seller financing. Seller financing usually hovers around 19%, just below the 20% threshold that triggers a personal guarantee requirement, which most sellers want to avoid. But after that first acquisition, your position changes significantly. Moving to Your Second Acquisition With your first business under your belt, you've not only gained invaluable experience, but your balance sheet is also stronger, your net worth has increased, and you've likely built a relationship with lenders and investors. Now, you have more options and leverage, meaning you can essentially be the bank. Here’s how the second acquisition looks different: Option A: Buy 100% with Your Own Terms Your stronger financial position means you can approach smaller sellers directly and structure deals that work best for you. You may offer to buy 100% of the business and pay out of its cash flow or profits over time-essentially using the business's own revenue to fund its purchase. The key here is finding a business with strong margins and healthy cash flow that supports this strategy, sometimes even without needing external financing. Option B: 100% SBA Financing If the business you're acquiring operates in the same industry (or shares the first three NAIC codes) as your existing company, you might be eligible for 100% financing under the SBA. The SBA is more likely to approve full financing for seasoned buyers who have a track record, which significantly lowers the amount of cash you need to bring to the table. Wash, Rinse, Repeat: Scaling Through Serial Acquisitions Once you've completed your second acquisition, you can continue scaling. Each acquisition strengthens your balance sheet, improves your cash flow, and increases your net worth-allowing you to acquire more businesses with even less out-of-pocket cash. You can: - Use seller financing, structured creatively, without needing personal guarantees. - Rely more on the acquired company’s profits and cash flow to fund deals. - Access more flexible terms from lenders as your reputation and financials improve. At this stage, you’re no longer just buying businesses-you’re creating a compounding growth machine. By layering acquisitions strategically and building a portfolio of revenue-generating assets, your wealth and business empire can grow exponentially. This is why buying your first business is the hardest.

Thanks, I have failed too... but when it happened, humbled, ashamed, and frozen with doubt. And, no podcasts around that looked for "failed" business entrepreneurs. What do I say now? Be a goldfish. ua-cam.com/video/8PmX7zEUg_w/v-deo.html

I'm glad you think so! It's always great to share insightful points with each other.

I have 2 more for you: 2. ua-cam.com/video/9sAmxhiyQVA/v-deo.html 3. ua-cam.com/video/iBOr7QIVqY8/v-deo.html

No exactly sure, it was south of $5m but north of $2m. There is update to this story, Adrian merged with another landscaper and doubled rev/ebitda.

Glad you liked it!

yea me too.

Thanks for the suggestion. And, I do. Its definitely a request I make when they schedule. I ask them to use headphones - because the app I use strongly suggests it.

I happen to know Intuit is furiously working on AI solution to protect their 85% market share. Its hard to convert someone to new accounting package when you have your history on Quickbooks. The threats will come from new industry seeking simple or integrated accounting solution. Like the newsletter industry and solutions like convertkit.com

@@JonStoddard QBs has made it so easy to convert to online from desktop - virtually a painless conversion while preserving history. Those of us that have completed multiple painful conversions, will resist an accounting software change. If a company wants to compete with QBs, AI will make it super simple to convert with history and make it very easy for businesses to switch.

Hmm...its like we are in the strategy room, and the question is, Why would QBs users switch to another accounting software? First Answer,: AI makes it easy to switch, What else people I need 10 reasons.

Glad you enjoyed it!

No, curious why? My teens use it a lot.

@@JonStoddard There's huuge potential to tap into to reach more people!

@paulclarkfr Business Buyers on Instagram?

Watch the full interview, ua-cam.com/video/J6PniKEjrHM/v-deo.html, Get his books, www.amazon.com/stores/Adam-Coffey/author/B07NLL55ZC?ref=sr_ntt_srch_lnk_1&qid=1724516294&sr=8-1&isDramIntegrated=true&shoppingPortalEnabled=true

Interesting Question, very specific, can you give me more context?

Thanks Sir! (yea I know we are both enlisted - no sirs)

This is the way.... I think its my best interview with Adam - 3rd try

Deals Deals Deals

Great questions all around.

You can try Mainshares.com for down payment equity.

or upload your opportunity to smbjunction.com

Glad you enjoyed it

yea he was in London or Dubai and ai could not fix it.