How to Apply Arbitrage Opportunities When Buying a Company
8.7 هزار بار بازدید -
4 سال پیش
-
"Arbitrage opportunity number one is
"Arbitrage opportunity number one is just, they're going to close the business. Let's buy it before it closes, give them something instead of nothing but not the 3.7 that we know we can get once we professionalize and sell it the right way. Okay. And tomorrow is all about selling it the right way." - Roland Frasier
To learn more about Roland Frasier 👉
https://bit.ly/golegsintensive
Subscribe to Roland Frasier 👉
@rolandfrasierepic
Learn more from Roland Frasier on Instagram 👉
Facebook: rolandfrasier
If you found this video valuable, give it a like.
If you know someone who needs to see it, share it.
Leave a comment below with your thoughts.
Add it to a playlist if you want to watch it later.
Roland Frasier is co-founder and principal of three current Inc. Magazine fastest-growing companies and he has founded, scaled or sold 24 different 7 to 9 figure businesses ranging from consumer products to industrial machine manufacturing companies with adjusted sales ranging from $3 million to $337 million.
Currently growing DigitalMarketer.com, RivalBrands.com and Plattr.com while advising over 150 other companies on digitally centric customer acquisition, activation, referral, retention, and revenue strategies and plan implementation.
PULLED QUOTES from this video🎙️:
"595,000 businesses close every year. Most of those should close. They just don't deserve it because they haven't proven to add value to the market to be in business. But many of them close because they can't find a buyer, remember 80% plus of businesses don't ever sell. So those are people that are trying to sell. Those are listings, not surprising. Why usually it's money. They're going to retire. They're going to a different place. They're tired. They've got shiny object syndrome, something wrong with their health. They're fighting with their partner. Somebody died or they think it's an upcycle and they should sell those people are usually going to get more for their business if they are actually in an upcycle."
"If you can buy it at a better price, if you could buy it at a multiple of 1.5, now you're at 540 for the purchase price. You're only 54 K down, but the valuation, once you do the things that you are going to do to the business to professionalize, it will be 1.3. That's a 760 K difference in valuation. If you can buy it at a one X and we buy businesses at like 0.6 to one all the time, okay. 360 K. Now you're only out 36. You got 1.3 valuation once you professionalize. "
"If we buy a 2.5 SDE business. So we're buying it at 2.5, it's got an EBITDA of a million and it's got an SDE of two. Why is the SDE higher? I'm assuming a homeowner salary of 150 K and 50 K of personal expenses that shouldn't probably be in there. So that's a $3 million valuation, 2.5 times 1.2 million. We would be out cash of 3 million, whether we had to come out of pocket for it or not. I talk about out of pocket instead of no money, because it's not that you're buying businesses for no money. It's that you, you don't have to come out of pocket. You're letting the businesses and the other strategies that you have pay for it."
Subscribe to Roland Frasier 👉
@rolandfrasierepic
If you know anyone who could use this information, share this video with them. We're here to help. Thanks for watching. We really hope this information was helpful to you and if it was, please give us a like, comment or subscribe.
Feel free to share this video 👉
How a Special Purpose Vehicle Can Sav...
Subscribe to our channel 👉 @rolandfrasierepic
You can also find other content by Roland on:
The Business Lunch Podcast Youtube Channel 👉 @businesslunchwithrolandfrasier
The War Room Mastermind 👉
@warroom9086
Connect with me on social:
📱Facebook: Instagram: rolandfrasier
📸Instagram: Facebook: rolandfrasier
To learn more about Roland Frasier 👉
https://bit.ly/golegsintensive
Subscribe to Roland Frasier 👉 @rolandfrasierepic
#businessinvestment #beaninvestor #entrepreneur #rolandfrasier #businessethics #businessideas #growthanddevelopment #growthstrategy #businessmindset #businessessentials #businesshow #exitstrategy #sellablebusiness #smartbusinessideas #businessgoals
To learn more about Roland Frasier 👉
https://bit.ly/golegsintensive
Subscribe to Roland Frasier 👉
@rolandfrasierepic
Learn more from Roland Frasier on Instagram 👉
Facebook: rolandfrasier
If you found this video valuable, give it a like.
If you know someone who needs to see it, share it.
Leave a comment below with your thoughts.
Add it to a playlist if you want to watch it later.
Roland Frasier is co-founder and principal of three current Inc. Magazine fastest-growing companies and he has founded, scaled or sold 24 different 7 to 9 figure businesses ranging from consumer products to industrial machine manufacturing companies with adjusted sales ranging from $3 million to $337 million.
Currently growing DigitalMarketer.com, RivalBrands.com and Plattr.com while advising over 150 other companies on digitally centric customer acquisition, activation, referral, retention, and revenue strategies and plan implementation.
PULLED QUOTES from this video🎙️:
"595,000 businesses close every year. Most of those should close. They just don't deserve it because they haven't proven to add value to the market to be in business. But many of them close because they can't find a buyer, remember 80% plus of businesses don't ever sell. So those are people that are trying to sell. Those are listings, not surprising. Why usually it's money. They're going to retire. They're going to a different place. They're tired. They've got shiny object syndrome, something wrong with their health. They're fighting with their partner. Somebody died or they think it's an upcycle and they should sell those people are usually going to get more for their business if they are actually in an upcycle."
"If you can buy it at a better price, if you could buy it at a multiple of 1.5, now you're at 540 for the purchase price. You're only 54 K down, but the valuation, once you do the things that you are going to do to the business to professionalize, it will be 1.3. That's a 760 K difference in valuation. If you can buy it at a one X and we buy businesses at like 0.6 to one all the time, okay. 360 K. Now you're only out 36. You got 1.3 valuation once you professionalize. "
"If we buy a 2.5 SDE business. So we're buying it at 2.5, it's got an EBITDA of a million and it's got an SDE of two. Why is the SDE higher? I'm assuming a homeowner salary of 150 K and 50 K of personal expenses that shouldn't probably be in there. So that's a $3 million valuation, 2.5 times 1.2 million. We would be out cash of 3 million, whether we had to come out of pocket for it or not. I talk about out of pocket instead of no money, because it's not that you're buying businesses for no money. It's that you, you don't have to come out of pocket. You're letting the businesses and the other strategies that you have pay for it."
Subscribe to Roland Frasier 👉
@rolandfrasierepic
If you know anyone who could use this information, share this video with them. We're here to help. Thanks for watching. We really hope this information was helpful to you and if it was, please give us a like, comment or subscribe.
Feel free to share this video 👉
How a Special Purpose Vehicle Can Sav...
Subscribe to our channel 👉 @rolandfrasierepic
You can also find other content by Roland on:
The Business Lunch Podcast Youtube Channel 👉 @businesslunchwithrolandfrasier
The War Room Mastermind 👉
@warroom9086
Connect with me on social:
📱Facebook: Instagram: rolandfrasier
📸Instagram: Facebook: rolandfrasier
To learn more about Roland Frasier 👉
https://bit.ly/golegsintensive
Subscribe to Roland Frasier 👉 @rolandfrasierepic
#businessinvestment #beaninvestor #entrepreneur #rolandfrasier #businessethics #businessideas #growthanddevelopment #growthstrategy #businessmindset #businessessentials #businesshow #exitstrategy #sellablebusiness #smartbusinessideas #businessgoals
4 سال پیش
در تاریخ 1399/04/01 منتشر شده
است.
8,726
بـار بازدید شده