Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game

Problem Every business should be solving “a pain.” What is the problem the business is addressing? Or is it providing a luxury? Clearly identify the pain or opportunity, as well as who it’s for. Value Proposition What is the company’s solution to the problem? What is the offering and unique competitive advantage of the company in supplying this off

What areas, tasks, and even possible industries are off-limits for you? What activities just absolutely do not interest you? What assignments do you drag your feet on? These should be identified so you can concentrate on working within your sweet spot and focus on what you do best. Get it all down on paper: the good, the bad, and the ugly.

The rule of thumb is that no customer is greater than 10 percent of revenues. If this is not the case, you’ll need to intimately understand the relationship and value provided to that customer because it adds an element of risk to your acquisition.

have found the best way to understand successful people is by looking at the research. What does it take to run a successful company? What is the skillset needed? Are these skills innate or can they be learned? These are the questions that budding entrepreneurs start to ask when they learn that the acquisition model skips the startup phase and goes

This investment model wasn’t invented by acquisition entrepreneurs. This is exactly the business model driving the entire private equity industry.

Typically, they would begin to cut expenses, raise prices, and begin an organic growth model of one kind or another. From there, they may acquire other firms in the industry, either as an add-on or tuck-in to the platform they established.

you are looking for to the right people.

Getting the seller to commit to ninety days is more insurance than anything else. I am also of the mind that this is not a difficult ask for the seller to agree to. I always require an additional six months available by phone. This firmly sets my expectations and doesn’t leave any loose ends.

Warrillow, John Built to sell: creating a business that can thrive without you. New York: Portfolio/Penguin, 2011

Look on LinkedIn. Make a list of these as you go along with contact information for each one. You are going to try to meet with all of them.