"The more parties you get investing in your deal, the less of a chance you're going to buy a bad deal."

In Part 2 of this two-part episode of the Before You Buy or Sell a Business podcast, I talk with SBA loan borrowers about the business they end up buying: an HVAC business.

From initial deal discovery to negotiating terms and finalizing the purchase, this episode provides a thorough examination of each step potential buyers should consider.

This detailed discussion underscores the importance of due diligence and strategic partnership in acquiring a business. Key topics include the evaluation of working capital, understanding the seller's perspective, and leveraging relationships with financial backers like the Search Investment Group.

Pete candidly shares lessons learned, emphasizing the immense value of patience and discipline when analyzing potential acquisitions. Garrett adds depth with his focus on maintaining a conservative approach to financial evaluations, ensuring any deal remains sustainable in long-term.

Key Takeaways:

✅ Involve multiple stakeholders in your deal-making process to avoid poor investments.

✅ Due diligence is crucial in understanding the nuances of potential acquisition, including financial and operational dynamics.

✅ Building relationships with experienced mentors or strategic investors can provide crucial guidance and support.

✅ Negotiating working capital is essential to ensure a smooth transition and stability post-acquisition.

✅ Approach acquisitions with a mindset of adaptability and readiness to tackle operational challenges.

CHAPTERS

0:00 | Introduction

4:52 | Balancing Fairness and Satisfaction in Real Estate Transactions

12:54 | Navigating Working Capital and Cash Flow in Small Businesses

16:17 | The Importance of Due Diligence in Business Acquisitions

17:30 | Deal Structuring Challenges

20:27 | The Importance of Fair Bidding and Building Lender Relationships

23:14 | Building Trust and Navigating Investment Challenges in Business Ventures

27:05 | The Challenges and Rewards of Acquiring and Operating a Business

31:21 | The Adventure of Owning an HVAC Business

In this two-part episode of the @beforeyoubuyorsellabusiness I sit down with my borrowers, Peter Hucal and Garrett Johnson, two dynamic entrepreneurs from Wharton who embarked on a journey of Entrepreneurship Through Acquisition (ETA).

Their diverse backgrounds across engineering, project management, social impact, and consultancy have uniquely positioned them for success in the acquisition space. Tune in as they share authentic insights into their professional path and elaborate on the intricacies of navigating such an acquisition in today's market.

Embarking upon a 13-month journey, Peter and Garrett discuss their extensive search for the right business, sharing the trials, errors, and eventual triumphs they encountered along the way. By focusing on core business fundamentals rather than specific industries, they outline how their open mindset towards geographical and sector-based opportunities guided their success. Alongside key strategies for maintaining broker relationships and insights on necessary interpersonal skills, the duo candidly dissects the realities of acquisition, dispelling myths of ease perpetuated by various online narratives.

Stay tuned for part two of this episode for what business Peter and Garrett settled on and the strategic partners they sought out.

Key Takeaways:

• Adopting a flexible strategy in ETA, being open to any industry or geography, can enhance the success rate.
• Building strong relationships with brokers is crucial and can lead to greater success in finding suitable deals.
• The process of finding and acquiring a business is complex and often requires resilience in face of numerous setbacks.

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If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode of "Before You Buy or Sell a Business," host Jared Johnson welcomes Conner Young, co-founder of Kairo Data. The conversation centers around Kairo Data's innovative platform, designed to streamline the process of finding and acquiring small to medium-sized businesses. Conner shares his team's journey from traditional wealth management to solving complex acquisition challenges through proprietary databases and off-market deals.

Conner provides an in-depth tour of Kairo Data's features, explaining how they aggregate business listings from various sources into a single, convenient platform. Users can refine their searches to match their specific acquisition criteria, create custom alerts, and even manage campaigns for off-market leads.

For those looking to outsource the initial stages of their search, Kairo Data offers comprehensive campaign services. The discussion also delves into key considerations for both buyers and sellers, emphasizing transparency and strategic engagement.

• Efficient Acquisition Tools: Kairo Data aggregates listings from multiple sources, streamlining the search process for potential buyers.
• Custom Alerts and Filters: Users can set up detailed alerts and customized buy boxes to focus their searches more effectively.
• Campaign Services: Kairo Data offers an end-to-end solution for buyers, handling outreach and initial vetting of potential sellers.
• Transparent Engagement: Both buyers and sellers are encouraged to be transparent and organized during the negotiation process to ensure a smoother transaction.
• Affordable Access: The platform provides valuable tools at a competitive price, making it accessible to a broad range of buyers.

• Kairo Data Website
• Email: team@kairodata.com

Enjoy this insightful episode to explore how Kairo Data is revolutionizing the acquisition!

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.