How to Make Money Buying Companies
Just recently I was talking to a stranger in a pub about buying companies. Aside from him being surprised to hear that it’s relatively straightforward to buy owner-managed companies, my newfound friend was even more surprised when I explained that it’s also possible to make money as part of the actual transaction.
He wanted me to explain some more, so I took him through the seven step Business Buying Blueprint that I have refined, which helped him to understand that there is a logical process that anyone can follow from start to finish.
I also explained the organisational structure that we put in place before we start acquiring companies.
And alongside the structure I explained about the importance of mindset.
You see, your mindset is absolutely crucial in determining the degree of success that you may or may not enjoy when buying companies. A big part of that mindset is to appreciate the value of the skills that you possess and the knowledge that you bring to the party.
“OK but how does that help me make money?” my new best mate asked me.
So I went on to explain that you build your own fees into the transaction in order to pay yourself for your time and skill.
“So you charge yourself for your work?” he asked, in a tone of disbelief.
“Exactly. Look if you employed a corporate finance team to go and do these deals for you, which is what the big companies do, you would have to pay them large fees. So it makes perfect sense to learn how to do the work and pay yourself.”
Our conversation drew to a close with my new friend muttering something along the lines of being in the wrong job. I gave him my business card and said if you want to learn more about how to do this then why not come along to one of our free discovery days – just have a look on the website. I think he’s booked for the next one!
If you want to know more about any of these points and how you too can make a living buying and selling companies with none of your own personal capital, please get in touch via email@example.com. I read all the emails and I will reply.