Jonathan Jay - Businesses Buying Strategies: How To Buy A Business Without Risking Your Own Capital

BUSINESS BUYING STRATEGIES

How To Buy A Business Without Risking Your Own Capital

JONATHAN JAY

2019 Jonathan Jay and The Dealmakers Academy.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publishers.

First published in Great Britain in 2019
Jonathan Jay and The Dealmakers Academy
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This book is for entertainment only. It does not give legal or accountancy advice and Jonathan Jay and The Dealmakers Academy do not give legal or accountancy advice or take any responsibility for the use of he information in this book. You should seek advice from a qualified lawyer and this book does not replace that advice. This book does not make any promise of earning potential which depends on factors outside of the control of the author and publishers.

Earlier this year, I signed a seven-figure deal to sell a company that Id bought 11 months earlier for just 1.

So, for a 1 investment, I received a seven-figure return. Any way you look at it, thats an incredible return on investment the kind that share market investors can only dream about.

I want you to realise that you too can do the same. In this book, youll discover how you can start buying and selling businesses for profit without risking your own money. By the time you finish, youll realise that this is something you can do, and that it will have a hugely positive impact on your life and finances.

When I bought that company, with the intention of merging it with two others, it had an annual revenue of 4.7m. At the time, the other businesses were doing less than that in annual revenues; so, in one afternoon, I more than doubled the companys size.

Youre probably wondering why, if it had an annual revenue of 4.7m, it sold for just 1. What was wrong with it?

It was a private equity-owned company and was unloved because it hadnt grown as quickly as its owners expected, they had all but lost interest in it. The company had a complicated ownership structure and had gone through several changes of management, which meant that their return on investment just wasnt there.

Even though it wasnt making any profit in fact it was making a loss I saw it as a worthwhile investment. To me, it represented what would have taken five or more years to achieve in that particular market.

Most importantly, I knew why it wasnt making any profit, and that I could fix it. So, I bought it and set about making it profitable. That mostly involved cost-cutting and removing overhead, so

• The management teams flashy company cars and big offices went.
  
• The expensive (but non-contributing) management team departed.
  
• The loss-making divisions were closed.
  
• Redundancies were made.
  
• Every penny was monitored.
  
• Some jobs were outsourced, and some were insourced.

Six months later, I had a 2m + EBITDA (earnings before interest, tax, depreciation and amortisation) company and decided to hire a broker to sell it. Nothing happened, so I sacked the broker and marketed it myself. I found a buyer and concluded a deal, just 11 months after buying the company.

Im going to show you how to buy an underperforming, unloved company without using your own money, turn it around and sell it at an enormous profit. Or, you could keep it and build a portfolio of companies, if you want to.

How to create the wealth and get the freedom you want

The question youve probably been asking yourself for months, maybe years, is how can you escape from being an employee or consultant, working for a salary or a set fee? How can you get off the hamster wheel and start enjoying more wealth and more freedom?

If you own a business, growth might be slow or flat lining this book is the answer to your problems.

You could buy a lottery ticket, but realistically, your chances of winning the jackpot are about one in 45 million (for the National Lottery) or one in 116.5 million (for the Euromillions Lottery).

You could set up a business using your own money or a bank loan and spend the next few years working 6080-hour weeks, but still not get anywhere near the lifestyle and wealth you want. Worse, the chances of your start-up surviving its first five years of operation are 50%. Although 80% of businesses survive their first year, 50% fail before their 5th anniversary. The sad truth is, only about 30% are still around to celebrate their 10th anniversary.

So, creating a start-up is not an easy way to create the type of future you want.

What else could you do to improve your financial situation? You could invent a product that changes peoples lives. But there again, even if you get funding for your invention, theres no guarantee youll get any of the financial rewards. After all, many inventors like Sir Tim Berners-Lee, who invented the world wide web, and Rob Klein, who invented the magnetic credit card strip, made very little money from their creations.

So, if setting up a business, buying a lottery ticket, inventing a product or just running your existing business arent the solutions, what is? What can you do that will help you attain your goals of freedom and unlimited wealth?

The answer is you can become what I call a dealmaker someone who buys and sells businesses to make a profit without ever risking his or her own money.

Youre going to discover how to be a dealmaker. Right now, this may seem a big goal, but Im about to provide you with a blueprint that you can follow. Its a step-by-step process that I use and which will help you achieve your dream of financial freedom, regardless of your current situation.

Right now theres probably a little voice in your mind thats saying:

I dont have the funds to buy a business.

I dont have any experience in running a business.

I dont know much about other markets or industries.

Heres what I have learnt from my experience of being a dealmaker you dont need previous experience or millions of pounds in the bank to become a dealmaker. You dont need an encyclopaedic knowledge of every market and industry. You can research and find out enough to do deals.

And you dont need a degree in business administration or accounting to become a dealmaker. You can hire experts to take care of the numbers as well as the all-important tax details and legalities for you. You can hire a management team to take care of the day-to-day operations for you.

Whats important is that you can buy the businesses without using and, therefore, without risking any of your own money. Better yet, youll be able to withdraw a monthly fee and annual dividend as well as enjoy a big payday when you sell the businesses.

This will give you the freedom and lifestyle that very few people get to enjoy.

The advantages of being a dealmaker

Why would anyone want to be a dealmaker rather than a business owner, an employee or the founder of a start-up business?

As a dealmaker, you avoid the stress of setting up a business and taking it through its early development. Someone has already done that for you.

You dont take the financial risk that the original owner took to set up a new business. Quite often, start-up owners use their own money or borrow funds from family members and friends to finance the start-up.

Why arent there more dealmakers?

I think there are two reasons why more people arent doing deals like this. First, they regard it as cheating because its not the endless years of hard work that most business owners endure. Its not cheating. Its a way to get what you want faster. Second, they dont know how to do it. They think its very complex.