Ulysses

𝟯 𝗞𝗲𝘆 𝗮𝘀𝗽𝗲𝗰𝘁𝘀 𝗳𝗶𝗿𝘀𝘁 𝘁𝗶𝗺𝗲 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗯𝘂𝘆𝗲𝗿𝘀 𝘀𝘁𝗿𝘂𝗴𝗴𝗹𝗲 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁... I had many discussions with professionals and self-employed people looking to buy a small business to transition from their current occupation the the business owner's life. Out of the many interactions I had, there were 3 key aspects most of them were struggling with. 𝟭. 𝗗𝗲𝗮𝗹 𝗳𝗹𝗼𝘄 First time business buyers face significant challenges in identifying, qualifying and negotiating business acquisitions. Being this a process they are going through the first time, the generally look for bespoke support when it comes to sourcing the best possible opportunity for their needs. 𝟮. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 Structuring the purchase of a small business can be complicated, especially when outside financing is needed. Professionals and self-employed people looking to buy their first business generally want support in navigating the financing arena. 𝟯. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗮𝗱𝘃𝗶𝗰𝗲 Other than deal execution and advice pre-acquisition, first time business buyers care to have professional advice post-acquisition to ensure the business is managed correctly during the delicate transition phase. Interested in getting professional advice and support in buying profitable online & offline businesses? 𝗦𝗲𝗻𝗱 𝗺𝗲 𝗮 𝗗𝗠 𝗮𝗻𝗱 𝗜 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗶𝗻𝗳𝗼 𝗮𝗯𝗼𝘂𝘁 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗥𝗢𝗜 𝗳𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝗮 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀? If you have followed me for some time you already know how I am going to answer this question... But before I do, let me put out a BIG 'WARNING' sign saying that this is NOT financial advice. You must ALWAYS consult with your trusted advisor before making any business purchasing decision. Having said that, what's the answer? IT DEPENDS! Calculating ROI in business acquisitions is complex as it is important to consider all the elements that may affect that ROI. ROI has several flaws, such as not accounting for time or leverage, This is just one of the reasons why ROI is rarely used to value a business. But for the curious ones... What are the common ROI figures I have seen in small business acquisitions? Small businesses: I have seen ROI range between 25% and 50%. Mid-size businesses: I have seen ROI range between 16% and 33%. Interested in getting professional advice and support in buying profitable online & offline businesses? 𝗦𝗲𝗻𝗱 𝗺𝗲 𝗮 𝗗𝗠 𝗮𝗻𝗱 𝗜 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗶𝗻𝗳𝗼 𝗮𝗯𝗼𝘂𝘁 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲.

𝟲 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀 𝗼𝗳 𝗯𝘂𝘆𝗶𝗻𝗴 𝗮 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗔𝗘 𝟭. 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙛𝙧𝙞𝙚𝙣𝙙𝙡𝙮 𝙚𝙣𝙫𝙞𝙧𝙤𝙣𝙢𝙚𝙣𝙩 The UAE business landscape is built to facilitate the process of conducting business inside UAE and abroad. Buying a business in UAE enables owners to benefit from minimal red tape and simple processes. 𝟮. 𝙏𝙖𝙭 𝙖𝙙𝙫𝙖𝙣𝙩𝙖𝙜𝙚𝙨 The most obvious reason for buying a business in UAE is that owners can benefit from minimal taxation that is currently set at 9%. Additionally, there are no personal income or capital gain taxes. 𝟯. 𝙇𝙤𝙘𝙖𝙩𝙞𝙤𝙣 Buying a business in the UAE enables the new owners to tap into the Middle East market. Additionally, it opens up a range of opportunity and communication channels with Europe, Africa and Asia. The UAE represent the perfect hub for any business wanting to grow worldwide. 𝟰. 𝙀𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙂𝙧𝙤𝙬𝙩𝙝 Buying a business in the UAE enables owners to tap into a growing market. 𝟱. 𝙇𝙞𝙛𝙚𝙨𝙩𝙮𝙡𝙚 Buying a business in the UAE can be the entry ticket for a new life in the UAE with access to great living standards and personal services. 𝟲. 𝙄𝙣𝙙𝙚𝙥𝙚𝙣𝙙𝙚𝙣𝙘𝙚 𝙖𝙣𝙙 𝙛𝙡𝙚𝙭𝙞𝙗𝙞𝙡𝙞𝙩𝙮 Buying a business in the UAE enables owners to transition out of a static lifestyle and progressively build independence and freedom. Interested in getting professional advice and support in buying profitable online & offline businesses? 𝙎𝙚𝙣𝙙 𝙢𝙚 𝙖 𝘿𝙈 𝙖𝙣𝙙 𝙄 𝙬𝙞𝙡𝙡 𝙨𝙝𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙞𝙣𝙛𝙤 𝙖𝙗𝙤𝙪𝙩 𝙬𝙝𝙖𝙩 𝙞𝙨 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙚.

𝗪𝗵𝘆 𝘀𝗼 𝗺𝗮𝗻𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗴𝗼 𝘂𝗽 𝗳𝗼𝗿 𝘀𝗮𝗹𝗲 𝗲𝘃𝗲𝗿𝘆 𝘀𝗶𝗻𝗴𝗹𝗲 𝗺𝗼𝗻𝘁𝗵 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗔𝗘 Having looked at more than 2000 small businesses for sale in the UAE, I want to share my perspective on why so many small companies get listed for sale on a weekly basis. There are many aspects to consider, so I will break everything down in a easy-to-read checklist. 𝗟𝗲𝘁'𝘀 𝗱𝗶𝘃𝗲 𝗶𝗻! 𝟭. 𝙊𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙨𝙩𝙞𝙘 𝙫𝙞𝙚𝙬 Many people set up small businesses in the UAE to capitalize on the opportunities available in the country. They operate with the mindset of building up a business to sell it and they jump on these opportunity as soon as they present themselves. 𝟮. 𝘾𝙝𝙖𝙣𝙜𝙚 𝙤𝙛 𝙥𝙡𝙖𝙣𝙨 People come and go from the UAE. Many are not here to stay. As plans change and personal, financial and business situations evolve, people are sometimes confronted with the necessity of selling their small business to relocate somewhere else, focus on other aspects of their life, or simply retire for business activities. 𝟯. 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙨𝙩𝙧𝙪𝙜𝙜𝙡𝙚𝙨 Sometimes business owners underestimate the cost involved with starting and running a business in the UAE. After 6, 12, 24 months, they are forced out of the business because of lack of cash and the only solution for them is to liquidate the business. 𝟰. 𝙊𝙫𝙚𝙧𝙬𝙝𝙚𝙡𝙢𝙞𝙣𝙜 𝙨𝙞𝙩𝙪𝙖𝙩𝙞𝙤𝙣 Simply put: too many come to UAE thinking it will be easy to get rich quick by starting up a business. A lot of these people end up holding a handful of sand. This mindset leads them to make short-term decisions to long-term problems and invariably they are forced to sell their business to avoid facing financial troubles. Overall, I believe UAE is a land full of opportunity for the ones who are savvy enough to understand there are pros and cons of starting or buying a business here. Understanding risks and opportunities is key when capitalizing on a country like the UAE. With such a short life-cycle for businesses, there is a huge opening for people willing to buy assets and leverage the power of established operations to achieve great financial outcomes.

𝗡𝗲𝘃𝗲𝗿 𝗯𝘂𝘆 𝗮 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗵𝗮𝘁 𝗶𝘀 𝗹𝗶𝘀𝘁𝗲𝗱 𝗳𝗼𝗿 𝘀𝗮𝗹𝗲...𝗱𝗼 𝘁𝗵𝗶𝘀 𝗶𝗻𝘀𝘁𝗲𝗮𝗱 👇🏻 I constantly stress the idea of building a personal deal flow pipeline when looking at small businesses to buy. This is because I believe it is very inconvenient to buy a company currently listed for sale. 𝗕𝘂𝘁 𝘄𝗵𝘆? 1. You will surely be dealing with a broker and won't have the ability to have a 1 on 1 interaction with the seller 2. Businesses that have been listed for sale for a long time represent a huge red flag. If they were so good, why haven't they sold already? 3. Accounts could be manipulated. It’s amazing to see how many businesses had their best year ever right before going up for sale, and, of course, the subsequent year will be even better! Many times I saw people add back expenses to inflate the profits and then multiply the profits up. 4. Expectations for the business may be too high and the owner a person you cannot negotiate with. 5. Everybody has access to the same info and competition for that deal, provided it is a good one, will be crazy high. And many other reasons... Thankfully, I built a deal flow system for my company Ulysses a long time ago. I am now able to predictably source quality off-market deal flow for ourselves and our partners. Interested in finding out more about how we can help you find quality off-market deal flow in the Middle East? 𝗦𝗲𝗻𝗱 𝗺𝗲 𝗮 𝗗𝗠 𝗮𝗻𝗱 𝗜 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗶𝗻𝗳𝗼 𝗮𝗯𝗼𝘂𝘁 𝘄𝗵𝗮𝘁'𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲.

What are the valuation multiples for small businesses? I have been asked many times what are the valuation multiples for small businesses. As you can imagine, this question comes from the ones who are not experienced in business acquisitions. They don't fully understand there are many variables involved when coming up with a valuation. The simple answer is: It depends. What is the size of this business? What is the industry and sector? How long has the company been around? What's the revenue and profit? Is it a turnkey operation or managed by the owner? Is the sector growing or shrinking? Many others... These are just a few of the questions buyers need to ask to better understand how to value a business. If you are looking for a cookie-cutter solution, I am afraid to say you will be disappointed. Interested in getting professional advice and support in buying profitable online & offline businesses? Send me a DM and I will share some info about what is possible.

𝗛𝗼𝘄 𝗿𝗶𝘀𝗸𝘆 𝗶𝘁 𝗶𝘀 𝘁𝗼 𝗯𝘂𝘆 𝗮 𝘀𝗺𝗮𝗹𝗹 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀? 𝘉𝘶𝘺𝘪𝘯𝘨 𝘢𝘯 𝘦𝘹𝘪𝘴𝘵𝘪𝘯𝘨 𝘴𝘮𝘢𝘭𝘭 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘪𝘴 𝘪𝘯𝘩𝘦𝘳𝘦𝘯𝘵𝘭𝘺 𝘭𝘦𝘴𝘴 𝘳𝘪𝘴𝘬𝘺 𝘵𝘩𝘢𝘯 𝘴𝘵𝘢𝘳𝘵𝘪𝘯𝘨 𝘰𝘯𝘦 𝘧𝘳𝘰𝘮 𝘴𝘤𝘳𝘢𝘵𝘤𝘩. That's because the business already has goodwill. The company is operating, has clients and customers, employees, systems, suppliers, and financial history, a location or locations. Of course, that doesn't mean buying a small business has ZERO risk. This is why due diligence is critical when evaluating deal flow. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗲𝗱 𝗶𝗻 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝗶𝗻 𝗯𝘂𝘆𝗶𝗻𝗴 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝗲 𝗼𝗻𝗹𝗶𝗻𝗲 & 𝗼𝗳𝗳𝗹𝗶𝗻𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀? 𝙎𝙚𝙣𝙙 𝙢𝙚 𝙖 𝘿𝙈 𝙖𝙣𝙙 𝙄 𝙬𝙞𝙡𝙡 𝙨𝙝𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙞𝙣𝙛𝙤 𝙖𝙗𝙤𝙪𝙩 𝙬𝙝𝙖𝙩 𝙞𝙨 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙚.

𝗣𝗿𝗼𝘀 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀 𝗼𝗳 𝗨𝘀𝗶𝗻𝗴 𝗮𝗻 𝗢𝗻𝗹𝗶𝗻𝗲 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝗳𝗼𝗿 𝗕𝘂𝘆𝗶𝗻𝗴 𝗮 𝗦𝗺𝗮𝗹𝗹 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗣𝗥𝗢𝗦➕ 🔵Access to a lot of opportunities in one place 🔵Support from platform advisors throughout the process 🔵Exclusive deals only available to that brokerage firm 🔵Preliminary vetting and due diligence on the opportunity 𝗖𝗢𝗡𝗦➖ 🔵Many of the opportunities are not suitable to your needs as the listings are available in all niches 🔵Advisors may have a vested interest in you buying and may not provide the best possible advice 🔵Opportunities are available to everyone on the Internet so there will be a lot of competition for good deals, while the remaining ones won't be so nice 🔵Dealing with an intermediary can complicate the acquisition process and sometimes kill the transaction for various reasons 🔵Some information may not be accurate and unless you conduct further due diligence you may end up buying a business on wrong assumptions 🔵Support post-acquisition can be faulty if the platform isn't supporting buyers once the deal is done 𝙄𝙣𝙩𝙚𝙧𝙚𝙨𝙩𝙚𝙙 𝙞𝙣 𝙜𝙚𝙩𝙩𝙞𝙣𝙜 𝙥𝙧𝙤𝙛𝙚𝙨𝙨𝙞𝙤𝙣𝙖𝙡 𝙖𝙙𝙫𝙞𝙘𝙚 𝙖𝙣𝙙 𝙨𝙪𝙥𝙥𝙤𝙧𝙩 𝙞𝙣 𝙗𝙪𝙮𝙞𝙣𝙜 𝙥𝙧𝙤𝙛𝙞𝙩𝙖𝙗𝙡𝙚 𝙤𝙣𝙡𝙞𝙣𝙚 & 𝙤𝙛𝙛𝙡𝙞𝙣𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨? 𝗦𝗲𝗻𝗱 𝗺𝗲 𝗮 𝗗𝗠 𝗮𝗻𝗱 𝗜 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝘀𝗼𝗺𝗲 𝗶𝗻𝗳𝗼 𝗮𝗯𝗼𝘂𝘁 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲.

Understanding small business acquisition pricing... Have you ever wondered why some businesses command a higher price during sales while others seem undervalued? My perspective is: To understand pricing, it is mandatory to talk about how that price is calculated. Without trying to overcomplicate the issue, I can simply say that price is generally a multiple of the EBITDA. This metric enables buyers to evaluate investments and measure how much the market is willing to pay for a certain asset based on its earnings. This metric becomes essential for establishing realistic expectations during a sale, guiding both buyers and sellers toward a mutually beneficial transaction. Of course, price multiples vary depending on the industry, geography, and many other factors. People can expect their companies to be overvalued or undervalued, depending on what the market is paying. Let's break it down with two examples: HIGH - Cybersecurity businesses currently sell for high multiples because the market is hot and buyers are willing to pay premiums for these companies. LOW - E-commerce companies are trading at very low multiples (sometimes between 1x and 3x yearly EBITDA) due to the high supply and volatility of the business. Are you interested in getting professional advice and support in buying profitable online & offline businesses? Send me a DM and I will share some info about what is possible.

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