Buy Then Build
Walker Deibel
22 min
7 Key Points
5 RateWhat's inside?
Discover the smarter way to entrepreneurship by acquiring an existing business and scaling it, rather than starting from scratch. This book provides a step-by-step guide to help you navigate the process and avoid common startup pitfalls.
You'll learn
1. Why buying a business can be better than starting one2. Spotting and sizing up businesses for sale3. The A-Z of buying a business, from checking it out to paying for it4. Tips for growing a business after you've bought it5. Keeping risks low when buying a business6. Real stories from folks who've bought businesses and made it big.Key points
01What's acquisition entrepreneurship all about?
Ever dreamt of owning a business? If so, you've probably considered the traditional route: coming up with a brilliant idea, building a product from scratch, and then hoping it takes off. But there's another, often overlooked, path to business ownership that might just be a smarter move: acquisition entrepreneurship. Acquisition entrepreneurship is all about buying an existing business and leveraging its resources to grow and innovate. Instead of starting from zero, you're starting from ten or even a hundred. You have an established customer base, operational systems already in place, and a team of employees ready to help you succeed. It's like moving into a furnished house instead of building one from the ground up. But it's not all sunshine and rainbows. Acquisition entrepreneurship comes with its own set of challenges. You might face integration issues as you try to merge your vision with the existing business structure. You'll have to manage legacy employees who may be resistant to change. And you'll have to deal with any existing liabilities the business might have. However, these risks can be navigated. Thorough due diligence is key. Before making an acquisition, you need to understand every aspect of the business you're buying. This includes its financial health, its market position, and its potential for growth. Seeking expert advice can also be invaluable. Lawyers, accountants, and industry experts can provide insights that you might not have considered. Once you've made the acquisition, having a clear post-acquisition plan is crucial. This should outline your vision for the business and the steps you'll take to achieve it. It should also include strategies for managing any potential challenges, such as employee resistance or integration issues. In conclusion, acquisition entrepreneurship offers a compelling alternative to the traditional startup model. It allows you to leverage existing resources, avoid the initial startup grind, and potentially achieve success more quickly. But like any business venture, it comes with risks. By conducting thorough due diligence, seeking expert advice, and developing a clear post-acquisition plan, you can navigate these risks and maximize your chances of success. So, if you're dreaming of business ownership, why not consider the acquisition entrepreneurship route? It might just be the smartest move you'll ever make.
02How to Identify Potential Businesses for Acquisition
You're an entrepreneur, and you've got the itch to start something new. But instead of starting from scratch, you're considering buying an existing business. This is what we call acquisition entrepreneurship. It's like buying a house that's already built, instead of building one from the ground up. But how do you know which business to buy? How do you identify the right one? First things first, you need to understand the business landscape. It's like being a hunter in the wild. You need to know the terrain, the animals that live there, and the best places to set your traps. In the business world, this means understanding the industry, the competition, and the market trends. You need to have a keen eye for opportunities, like a business that's undervalued or a market that's about to explode. Next, you need to evaluate the business's financial health. This is like a doctor checking a patient's vital signs. You need to look at the business's financial statements, like its income statement, balance sheet, and cash flow statement. These documents can tell you a lot about the business's financial health. For example, is the business profitable? Does it have a lot of debt? Is it generating positive cash flow? These are all important questions to ask. Then, you need to assess the business's market position and growth potential. This is like a coach scouting a player. You need to know the business's market share, competitive advantage, and customer base. You also need to assess its growth potential. For example, is the business in a growing market? Does it have the potential to expand its product line or enter new markets? These are all important factors to consider. Another important factor is compatibility with your skills and interests. This is like choosing a partner. You need to make sure that the business is a good fit for you. For example, if you're a tech whiz, you might not want to buy a restaurant. Or if you love fashion, you might not want to buy a software company. You need to find a business that matches your skills and interests. Finally, you need to find businesses for sale and evaluate their value. This is like shopping for a car. You need to know where to look, how to evaluate the value of a business, and how to determine if the asking price is fair. There are many places to find businesses for sale, like business brokers, online marketplaces, and industry trade associations. To evaluate the value of a business, you can use methods like discounted cash flow analysis, comparable company analysis, and precedent transaction analysis. In conclusion, identifying the right business for acquisition is a complex process that requires a deep understanding of the business landscape, a thorough evaluation of the business's financial health and market position, and a careful assessment of compatibility with your skills and interests. But with the right strategies and a keen eye for opportunities, you can find the perfect business to buy and outsmart the startup game.
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03Negotiating and Financing Acquisition: Strategies and Techniques
04Managing Post-Acquisition Integration: A Guide
05How to grow and scale your acquired business?
06Exit Strategies for Acquisition Entrepreneurs: A Guide
07Conclusion
About Walker Deibel
Walker Deibel is an acquisition entrepreneur who has co-founded three startups and acquired seven companies. He's an advisor for Inc.'s online learning platform and holds an MBA from the Olin School of Business. Deibel is also the author of "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game".