What questions do we ask when looking to acquire a business? 🙋♂️🚧 - Is it a good business? ✅ - We look at historical returns on capital (EBITDA or Net Income divided by Capital required to run the business). 20% is good but one we just bought is 100%+. A capital-light business with high net margins leads to significant free cash flow to invest in growth and acquisitions. - Can we buy at reasonable valuation? ✅ - 10% yield on earnings is attractive, or operating earnings divided by enterprise value (EV). The S&P 500 trades at a 4-5% yield, bonds trade at 4-8% and small businesses can trade at 10-20% yields. The businesses we are buying trade at 25% yields with little to no growth. Our team believes we can grow net cash flow by four times (4x) in 5 years, making returns quite attractive. - How can we add value? ✅ - Do we understand the business and operations? Can our backgrounds, capital, network and partners add to business development, talent bench, accretive acquisitions and growth of the platform. We believe so. We will add experienced professionals to our Advisory Board to accelerate strategic growth. Join Us. 🛻🚜✈️ Email Matt@HillandaleAdvisors.com or Register for Private Business Roundtable. Hillandale Advisors Private Business Roundtable https://lnkd.in/ddfDABu4
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I have a secret to share, folks! 🤫 Acquiring a business isn’t just about numbers and balance sheets📊. It’s about understanding people and harnessing the power of relationships!🤝🔥 Here’s the art of the deal in a nutshell: 1️⃣ Knowledge : Knowing your potential acquisition inside-out🔍. Understand its value proposition, its people, its products, and its market presence🌐. 2️⃣ Relationship : Building ties with the company's stakeholders⛓️. Closeness can foster trust and pave the way to a smooth acquisition🤝. 3️⃣ Timing : Striking when the iron's hot!⏰ Every company has its seasons and knowing when to step in is crucial. Look, acquisitions are not a battlefield but a dancefloor! 💃The deal isn’t sealed by who shouts the loudest📢, but by who leads the dance, decisive yet gentle, confident yet understanding🎼. Keep learning. Keep leading. Keep securing that deal!🚀 #BusinessAcquisition #ArtOfTheDeal Next time you’re scouting for a business acquisition, remember: it’s as much about the heart💖 as it is about the head🧠. Boom, that's it!💥 Remember, there is no one-size-fits-all strategy - work to your strengths, know your stuff, and bring that human element🤗. Disclaimer: This isn't professional advice. Everyone's situation is unique, so consult the right professionals👩💼👨💼 for your specific needs.
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HAS YOUR BUSINESS PLATEAUED? It really is tough to get your company past a certain size. Maybe its the market, your service or maybe its you? Sometimes the change needed is subtle. Sometimes its a sledgehammer. In recruitment, like many industries, the majority of businesses fail to get beyond 5 heads, even less get to 10. Lot's of frustrated owners. Then there's 20 or 30 heads. Same problems, different scale. So how about being offered absolutely nothing for 10% of your business? Or absolutely nothing for 51% of your business and yet in both cases having the opportunity to exit for a substantial sum? Working with an industry expert or an investment group offers you the chance to grow and realise value. How does it work? Your business is valued based on current market trends. That value is ringfenced in the shareholders agreement (SHA). The new party help you run a company to grow and help you exit through buy out or trade sale. You get the original ringfenced valuation plus your share of the added value. Interested to know more, then reach out...... #recruitmentsuccess #investmentstrategy
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💡 Pro Tip Alert: Boost Your Company's Value! 💰🏆 When it's time to sell, don't forget these game-changers: 🌟 Unique Culture: Showcase what makes your company special. It can significantly impact your valuation. 📈 Hidden Assets: Explore and leverage your underappreciated strengths to maximize your deal. Sell smarter with Maximum Possibilities! https://lnkd.in/dNQ-4qNp #businesstransition #businessgoals
Contact Maximum Possibilities | Business Advisory Services
https://maxpossibilities.com
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Successful businesses understand the power of collaboration. Building strategic partnerships and ecosystems with complementary businesses can unlock new avenues for growth. Contact us and begin your growth journey today: https://lnkd.in/g-5CQnhU #businessgrowth #businessstrategies
Business Growth Advisors & Partners | Maximum Possibilities
https://maxpossibilities.com
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What could your business achieve with a £50,000? Are you eyeing expansion plans this year to take your business to the next level? Perhaps you're considering investing in new assets to enable the hiring of more talent or to accelerate an upcoming project? If you're aiming to grow your business, let's have a conversation – we might just have the resources and expertise to assist you
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Ready to take your business to new heights? Learn essential M&A growth strategies in this insightful article! #MergersAndAcquisitions #BusinessGrowth #Strategy
Understanding M&A Growth Strategies For Your Business
blog.benchmarkcorporate.com
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Ready to take your business to new heights? Learn essential M&A growth strategies in this insightful article! #MergersAndAcquisitions #BusinessGrowth #Strategy
Understanding M&A Growth Strategies For Your Business
blog.benchmarkcorporate.com
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Ready to take your business to new heights? Learn essential M&A growth strategies in this insightful article! #MergersAndAcquisitions #BusinessGrowth #Strategy
Understanding M&A Growth Strategies For Your Business
blog.benchmarkcorporate.com
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Client Journeys - Why Age Matters When Selling Your Business Multiples can go down as you get older in some service/relationship businesses where the acquirer is paying for your customers and the future revenue they can generate. In order to maximize their investment, the longer the acquirer has to transition these relationships with your support, the greater the likelihood of maintaining them well into the future. The less time the owner is willing to spend transitioning the business, the greater the risk to the acquirer leading to a less desirable sale price for the seller. Waiting too long to sell your business also decreases the likelihood of the owner being able to meet their desired transition timeline. In working with one of our clients, the owner was ready to sell and move on to his next chapter in 1-2 years, but due to market dynamics and some unique company characteristics, the sale did not happen as quickly as desired, and the owner had to extend working beyond their desired timeline. Giving yourself ample runway for selling and transitioning your business can help you maximize your sale price and achieve your desired exit timeline. Question: How much time do you think a business owner should allow for the sale process and transition? #businesssales #mergersandacquisitions #exitoptions
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Hey Chris Kinner, CJ Casselli, Mark Williams and other business hunters - what else is on your top 3 question list when buying a business?