AiK2 Insurance Services’ Post

I talk all the time about the business I’m buying, but what about the deals that don’t work out? 🤔 We’ve bought 6 businesses in the last 12 months For each business we’ve bought We’ve looked at atleast 50 deals, sent 10 LOIs and conducted due diligence on a business at least 3 times This is a lot of deals Comes out to hundreds of deals reviewed over the past year We’ve had more failed deals than I can’t count This has happened for a variety of reasons I can’t pretend it’s never my fault Sometimes I overvalue the business, over look something or relationships breakdown Howveee, most often it is something from the sellers side Usually to do with not realising certain numbers, or exaggerating revenue Whatever it is It always comes up in due diligence I love due diligence It’s a life saver Crucial for the deal making process It’s where we put an X-ray to the business and under what’s inside it and if all the details are legit Deal making is so fun Looking at deals is really what made me fall in love with businesses Maybe you should try it out too #buyabusiness #acquisition #privateequity #fail #lesson #duediligence

Last month we had a number of superb acquisitions. With press articles claiming many agents are struggling and with the uncertainty of forthcoming legislation now could be a great time to consider selling your lettings business or portfolio. We have many in our growing network with funding available hungry for opportunities. If you are interested, contact me in confidence for an informal discussion. In January, I received such an enquiry and the sale was completed in less than 3 weeks for the asking price! @followers #businesssale #lettingsagent #propertymanagement #followers

I’m pleased I had 2 failed deals before completing the Manchester one. Here’s why: - Revenue was too low, hard to create significant value - Neither were linked to my background, lots to learn (slower onboarding!) - Owners only cared about money, makes you wonder what you’ll inherit - Small operations, I’d have got bored or impatient pretty quickly With 80% of small businesses never selling, acquiring these would almost certainly mean buying something you’d struggle to sell in the future. Didn’t feel like it at the time, but these were very important near misses. If you’re thinking of acquiring, don’t back yourself into a corner for the sake of “deal flow.” Anyone else care to share experiences or near misses we can all learn from? #buyabusiness #acquisitions #expensivemistakes #lessonslearned

Selling a business is a journey, and we know this firsthand. Here's two things that can help navigate a smooth transactions: Deal Structure: Work with someone with experience that can help structure a deal that maximizes returns and aligns with your financial goals. Consider cash payments, earnouts, seller financing, and non-compete agreements. Due Diligence: Be prepared for due diligence. Organized and accurate records expedite this crucial process. #BusinessValuation #BusinessSale #StrategicPlanning #Acquisitions #EDFEnterprise #Entrepreneurship

At Seph Acquisitions, we aim to create a lasting impact by driving the continued success and growth of every business we acquire. ✅ We’re dedicated to preserving legacies while promoting new opportunities for sustainable growth. 💯 🌐 sell@sephacquisitions.com ☎️ (281) 891-5905 #SephAcquisitions #BusinessGrowth #BusinessStrategies #GrowYourBusiness #Entrepreneur #ExitStrategies #BusinessSuccess #BusinessAcquisitions #BusinessPlanning

Have you ever sold a business? Have you ever thought about selling a business? Here is what I have gathered, many attorneys in the practice of selling businesses fail to raise a key ingredient to the sale. The fail to have a discussion with the client on financial expectations from the sale. Lawyers are quick to get to the documents, the LOI, the definitive agreement, etc. Many fail to slow down and ask, is this the right thing for the client and fail to have that conversation. I approach deals by putting myself in the position of the seller or the buyer, I think to myself, what do I need to know to determine if this is the right thing for me. Questions such as, have a gotten a valuation from a trusted CPA firm, have I truly understood the dynamic within the culture and team of the company, do I understand what is required after the sale or upon receiving the company, have I allocated enough funds for the sale (legal, costs, expenses, delays, post-closing concerns). Many deals I have been part of always have these problems, and lawyers fail to raise these concerns at the onset. #mergers #acquistions #saleofbusiness #purchasingabusiness #medicalpractice #deal #dealflow #entrepreneur #privateequity #venturecapital

People love to lie - but let's stick to the facts. It has come to my attention that some individuals are persisting in spreading a particular untruth: that I teach people how to purchase a business for £1. Let's set the record straight - that's simply not true. In reality, when discussing distressed acquisitions (like a £1 deal), I caution beginners against it, highlighting the skills and temperament required for success. My clients are well aware of this advice. I must admit, years ago, I did host a seminar titled 'how to buy a multi-million-pound business for £1m' - a story worth sharing after buying a multi-million-pound business for £1 and selling it for £1.25m cash within 11 months. Despite this, there is a group on LinkedIn spreading misinformation, even resorting to childish name-calling. Let's clarify: I educate individuals on financing business acquisitions without using their own capital, a far more compelling and profitable strategy for buyers. Let's focus on the truth and the value of learning how to finance business acquisitions creatively. #BusinessAcquisitions #FinanceStrategies #EntrepreneurshipTruths

I had an enquiry about how to finance acquisitions. You can use the assets of your own business and the target business to raise the funds required. The debtor book can give you up to 90% of the VAT inclusive debtor book. The plant and machinery can be refinanced. Typically this is at 70% but you get get more. Property can be used and the Loan to Value is typically 70% Stock will typically raise you about 20% Alongside you can add a cash flow loan. Many buyers use some element of deferred consideration to make the transaction work. Most lenders would like to see some skin in the game so like to see money being put in. For many buyers leverage is the main aim when looking to raise finance; however, you need to be sure that it works going forward. Once the transaction is complete you need working capital to run the business. You also need some headroom to create a margin for error. #acquisitions #business #entrepreneur

The Business Transitions Forum #Atlantic is fast approaching and there are still a few spots left to register. Join SeaFort Capital Inc. on Tuesday, April 9th at the Halifax Convention Centre to learn how to grow and sell your business, broker deals, make acquisitions and find buyers. For more information and to register (use code SF25 for 25% off registration), please visit https://lnkd.in/gsewHgR #SeaFortCapital #BTFATL #PrivateEquity #MergersandAcquisitions #Entrepreneurs #CanadianBusinessOwners #Partnership #GrowthStrategy

🚀In the exhilarating world of business, the thrill of acquisition ranks right up there! Decoding the art of the deal, here are some vital checkpoints: 🎯Neat Negotiation: It's not a tug of war, it's a dance. Understand their point of view, marry it to yours. Pave ways for win-wins, not short-lived victories. 💡Knowledge Powerhouse: Sun Tzu rightly proclaimed: “Know the enemy and know yourself; in a hundred battles you will never be in peril.” 🛠Get your acquirer-wrench ready! A well-researched, systematic approach swats away spontaneous mistakes. Ooze confidence, not overconfidence. 🖋Seal the Deal, but open your eyes👀: A signed MOU is great, but post-acquisition integration is greater. You don't want to open your champagne, only to discover it's flat! In the midst of this heady mix, remember, besides all the mechanics of mergers, it’s the people that matter. Make them win, and you win💪! Hashtags: #BusinessAcquisition #TheArtOfTheDeal #WinWin #Negotiation This isn't professional advice. Everyone's situation is unique, so consult the right professionals for your specific needs.