Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game

Possessing a drive for results and being able to get results from others The ability to make decisions, including unpopular decisions Strategic agility when dealing with ambiguity A certain level of risk tolerance Financial acumen Critical thinking, which is an innate trait Tactical ability Perseverance Self-awareness, which includes the ability to

Whenever I am looking at any business, I’m looking to identify the path to growth and the amount of upside potential. How big can this business be? Try to understand the driver behind a company’s value and how to best scale it. How to accelerate it, change it, or keep it as a lifestyle business.

two core, overarching functions. One side of the spectrum is revenue generation and the other is operational execution. Are you a grow-the-top-line-oriented individual or are you interested in operational execution? In other words, do you want to sell more product, or make as much product as possible at the lowest cost? Everyone has a natural incli

All businesses can probably be identified as offering a product, acting as a distributor, or providing a service.

The result is that high-growth acquisitions almost have two risks: if the growth doesn’t continue, you risk overpaying for the investment and stressing the cash flow.

insight on how they “believe” the process works. Ask whether they have a due diligence checklist or, if they were to make one, what would be on it. Finally, make sure they’ll have time to commit when you need it. If you’re wanting to close on May 1st this could put your due diligence period in the middle of tax time.

Even if they do, wait for them to finish and follow up with, “What makes this

on investment, margin of safety, and upside potential.

Rule number one for establishing a purchase price is making sure the business can afford to pay for the business. So much of the first half of this book is focused on you as an entrepreneur, your skillsets, and what you can afford.

We’ve discussed that the assets are only as good as their ability to produce earnings, and