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How to negotiate buying a business

Business Buying Strategies from The Dealmaker's Academy

Release Date: 01/18/2024

Personal Branding Strategies with Amelia Sordell show art Personal Branding Strategies with Amelia Sordell

Business Buying Strategies from The Dealmaker's Academy

Leveraging Personal Branding for Business Success In this episode of Business Buying Strategies, host Jonathan Jay introduces personal branding expert Amelia Sordell. Amelia discusses the crucial role personal branding plays in the success of business acquisitions, focusing on maximizing LinkedIn presence to attract more opportunities and investments. She emphasizes personal content's power to achieve up to 561% more reach compared to company messages, illustrating the concept of perceived value with an Evian water comparison. Amelia provides actionable strategies for building a compelling...

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Overcoming Imposter Syndrome in Business Acquisition with Vicki Espin show art Overcoming Imposter Syndrome in Business Acquisition with Vicki Espin

Business Buying Strategies from The Dealmaker's Academy

In this episode of 'Business Buying Strategies,' Jonathan Jay introduces Vicki Espin, who discusses overcoming imposter syndrome, particularly for new business buyers worried about their lack of experience.  Vicki emphasises that impostor syndrome affects everyone at different stages of life and offers insights on the roots of these feelings and practical advice on managing them. She highlights the importance of understanding one's motivations and beliefs to overcome doubts and fears related to business acquisition. She offers practical strategies to acknowledge and address their imposter...

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Getting the deal done - with Nigel Risner show art Getting the deal done - with Nigel Risner

Business Buying Strategies from The Dealmaker's Academy

In this week’s episode of the podcast, we feature highlights from peak performance coach Nigel Risner’s presentation at our last Dealmakers Retreat on how to get deals done and negotiate with vendors. During the presentation, Nigel delivers a masterclass on why some people are more effective than others in a negotiation, how to connect with and understand the other party to get the best deal and why you need to go deeper to understand why you’re not getting the results you want.  This is packed with valuable insights and practical suggestions that will make a difference in your next...

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Understanding motivations of buyer and seller show art Understanding motivations of buyer and seller

Business Buying Strategies from The Dealmaker's Academy

In the latest episode of the Business Buying Strategies podcast, Jonathan Jay reveals the psychology of the buyer and seller during any negotiation for the acquisition of a business. Business acquisition negotiations are primarily a psychological game, with the party who has more information carrying an advantage. Understanding how the vendor thinks from the start of a negotiation and through the various stages of a discussion is essential to building the trust and rapport needed to ensure an open conversation.  Ultimately, the goal is to discover the motivation of the seller for having...

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Mastering business ownership - vision, values and culture show art Mastering business ownership - vision, values and culture

Business Buying Strategies from The Dealmaker's Academy

In the latest episode of the Business Buying Strategies podcast, business growth expert Andy Hemming explains the importance of vision, values and culture in a business in achieving business success post-acquisition. Andy discusses strategies for creating a positive culture that attracts quality employees and sustains growth. The episode covers practical frameworks for identifying and reinforcing a business's core values, structuring the organisation, and optimising operations through effective systems and processes, ultimately advocating for the systematic approach to building and integrating...

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Mastering Business Ownership - Strategies for Growth and Exit Multipliers show art Mastering Business Ownership - Strategies for Growth and Exit Multipliers

Business Buying Strategies from The Dealmaker's Academy

In the latest episode of the Business Buying Strategies podcast, business growth expert Andy Hemming explains how to oversee the performance of your business and drive growth without getting involved in the day-to-day operations. As a business investor, you need to avoid being drawn into daily management. Yet you also need to set the direction and focus on the business while holding the management team accountable. In this episode, Andy Hemming explains how to get the best from your management team and oversee growth by tracking the right metrics and KPIs, how to use the business cycle to...

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Mastering Buy and Build Strategies for Business Growth show art Mastering Buy and Build Strategies for Business Growth

Business Buying Strategies from The Dealmaker's Academy

In the latest episode of the Business Buying Strategies podcast, Jonathan Jay reveals the rules for executing a successful Buy and Build strategy. The Buy and Build strategy is a popular with Private Equity firms. It involves acquiring multiple businesses and rolling them up together to create a business worth far more than the sum of its parts. However, there are plenty of risks along the way for the inexperienced dealmaker.  In this episode recorded during the Dealmakers Retreat in Marbella earlier this year, Jonathan explains the benefits of using a Buy and Build strategy and how to...

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M&A: James Caan's Strategy for Buying, Selling, and Managing Risk show art M&A: James Caan's Strategy for Buying, Selling, and Managing Risk

Business Buying Strategies from The Dealmaker's Academy

In this week’s episode of the Business Buying Strategies podcast Jonathan is in conversation with James Khan, renowned for his time on Dragon's Den and his expertise in business acquisitions. James shares his journey from starting a small recruitment business to building Alexander Man into a global leader in talent solutions, emphasizing the strategy of 'buy and build' for achieving scale. He discusses the importance of not taking on too much personal risk during acquisitions, the value of due diligence, especially regarding cultural fit, and his approach to financing deals without...

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Jonathan's keynote from the Marbella Dealmakers Conference show art Jonathan's keynote from the Marbella Dealmakers Conference

Business Buying Strategies from The Dealmaker's Academy

The Power of Action in Business Acquisition The difference between success and failure in business acquisition is not about how much you know. What stops most people from buying their first business is their mindset and belief.  You can watch hours of YouTube videos, listen to hundreds of podcast episodes, and attend countless M&A networking events, but none of it has any value unless you take action.  In the latest episode of the Business Buying Strategies podcast, listen to Jonathan Jay’s keynote speech from our recent Dealmakers Marbella Retreat, in which he discusses the...

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What size of business should you buy first? show art What size of business should you buy first?

Business Buying Strategies from The Dealmaker's Academy

What size of business should you buy first? In the latest episode of Business Buying Strategies, Jonathan Jay offers guidance to first-time business buying on some key decisions to make when targeting their first acquisition.  Jonathan highlights elements to consider such as business size, owner involvement, business location, and the time commitment for the acquisition. He stresses the concept of not buying a business for just one pound, given the assumed liabilities can be burdensome, especially for first-time buyers. Jonathan recommends buying a solid, profitable business and using...

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More Episodes
De-risking Business Acquisitions: A 12-Step Guide to Successful Deals. 

In this episode, Jonathan Jay shares strategies for buying a business successfully, without risking personal cash. He elaborates on the importance of proper corporate structure, no personal guarantees, de-risking leases, and linking business payment to performance. Jay also explains the significance of not over-leveraging, cost underwriting abort fees, due diligence, and incentivizing owners for a smooth transition among other things. He illustrates these points with real-life examples and emphasizes the ultimate aim - to de-risk deals and ensure a better night’s sleep for business buyers.
 
00:34 Introduction and Upcoming Events
01:25 De-risking Business Acquisitions: Part 1
01:55 Importance of Corporate Structure in Business Acquisition
04:31 Avoiding Personal Guarantees
07:52 De-risking Leases in Business Acquisition
11:48 Linking Payment to Business Performance
16:00 Avoiding Over-leveraging in Business Acquisition
26:55 Dealing with Distressed Businesses
32:33 Ensuring Smooth Transition Post-Acquisition

** Looking for a great acquisition lawyer in the UK? Use mine! **

If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at [email protected].

Ready to get started?

Here’s how you can start your business buying journey…

Watch my FREE Dealmakers webinar training:

https://www.dealmakerspodcast.com

Get a FREE copy of my book:

https://www.thedealmakersacademy.com/free-book-giveaway

Join the Business Acquisition FastTrack course

https://www.thedealmakersacademy.com/quick

Already bought a business?

if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria at [email protected] for more information.