Feels Illegal Thing to Know About Acquiring Businesses
HTML-код
- Опубликовано: 28 июл 2024
- A couple of years ago, I was interviewing Gary Vaynerchuk and asked him, “What do you know now that you wish you had known when you first got started?”
And Gary gave one of the best answers I've ever gotten. He said he could have saved himself tens of millions of dollars if he had known about SPVs when he was younger.
The SPV is key to not putting your personal assets at risk, do not start acquiring businesses until you set one up.
To learn more about Roland Frasier 👉 msha.ke/rolandfrasier/
Connect with me on social:
🎵 TikTok: / rolandfrasier
📸 Instagram: / rolandfrasier
📱 Facebook: / rolandfrasierpage
💼 LinkedIn: / rolandfrasier
Subscribe to Roland Frasier 👉 / @rolandfrasierepic
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 Scalable.co, 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.
You can also find other content by Roland on:
The Business Lunch Podcast RUclips Channel 👉 / @businesslunchwithrola...
The War Room Mastermind 👉 / @warroom9086
Subscribe to Roland Frasier 👉 / @rolandfrasierepic
To learn more about Roland Frasier 👉 msha.ke/rolandfrasier/
Connect with me on social:
🎵 TikTok: / rolandfrasier
📸 Instagram: / rolandfrasier
📱 Facebook: / rolandfrasierpage
💼 LinkedIn: / rolandfrasier
Subscribe to Roland Frasier 👉 / @rolandfrasierepic
#shorts #buyabusiness #epicchallenge 
Хобби
Thank you sit
Welcome!
Not unless there is a clause within the contract for personal guarantor…
Most profitable business are not run by stupid people…
Most profitable businesses (80%) also don’t sell. Most small business sales
@@mitchellrusten3726 Well said!
I don’t think any seller will do 100 percent financing unless they r really sick of the buisness…. They will need some skin in the game from u
Hi I have an HVAC company that has been an operation for 43 years. One-man operation no retirement any recommendations
Send me a DM on Instagram with more details. instagram.com/rolandfrasier/
@@RolandFrasierEPIC keep these going hoss. Can u go into other examples with Llc, Spv and Seller financing examples, other than brick and mortar small businesses acquiring? Great vid Sir 👌 💯
Thanks for so many replies to so many people. I plan to retire in 10 yrs. Glorified paper pusher. Just today was thinking about buying a biz but only have $10-$$20k. We spent our savings on a DP for a home last year. What can you recommend I read or videos, to learn how to evaluate a biz and the finances of the biz before buying the biz. Do you have other videos that teach biz evaluation? Realistically, How much of a SDE can I look for with only $0 -$$20k down.? Ty very much
Does only work ij the US
More info plz
Wouldn't the seller know you're utilizing an spv and then put it in the contract it would need to be personally guaranteed?
It’s always something that can be negotiated, but there are lots of other reasons to use an SPV in addition to potential shielding from personal liability on a seller note, including protection from the liabilities the company may have but that you may not be aware of, prior dealings of the company, etc. Better to start with the SPV as the entity making the offer vs you and then see if the seller or their attorney push back and ask for a PG.
Everytime I call these formation companies they have no idea what a spv or special purpose vehicle is
Brian try Prime Corporate Services. They should be able to help you. The thing is though, they don’t need to know what an SPV is. Any limited liability entity like a corporation or LLC will work for this purpose. It becomes an SPV when you use it for one purpose, like acquiring a company or its assets.
So you set up an llc, then get 100% seller financing. Then when the business fails and you cant buy back what happens next?
If the business fails and the LLC does not have the funds or assets to pay the seller, the seller would be able to take the business back from the LLC. That’s why we like using SPVs for these so that you can protect your personal and business assets and credits. The deal makes it on its own or does not. If not, then seller just takes it back.
is a Special Purpose vehicle the same as a special purpose acquisition company ?
They are very different creatures. SPACs are generally blind pool companies that are publicly traded and raise money to then invest in deals via merger or reverse merger. SPVs are just any company that provides liability limiting benefits for its owners, like a corporation, LLC, etc. The SPV is a great way to protect your personal assets and credit from liability for another deal you want to get into.
🔥🔥🔥
how much is it to create a spv?
Brian, I own part of a company that does it for you for the costs of formation. It’s prime corporate services if you’d like to check them out. You can also do it yourself at your local Secretary of State or similar agency.
Hey Roland, do you have a calendly?
Brian, hit me up on the socials and I’m happy to reply.
💯
Save your money guys, this 100% seller financing thing is not going to happen. Don't try to cut corners. Go hook up with a Private equity firm or family office and actually close a deal. lol If this was soooo good, TRUST ME, there wouldn't be courses on it hahaha
Ron, there are courses on SBA financing, M&A, even private equity. PE is typically going to take the lion’s share of the profit after a preferred return. It’s fine if you prefer the PE route, but you might benefit from having an open mind that there are other ways to do deals, and I know this because I do them regularly. Cheers.
Are you saying that there are only courses on things that are not good? That is confusing.
@@user-zh7ik1lq6f Giovanni, I’m not saying other courses are good or not good. There are both good and bad that are out there. I was replying to Ron’s comment saying 100% seller financing is not going to happen. First of all, it ignores the fact that I talk about using many types of no money out of pocket financing strategies to finance businesses, and second as you can see from the other replies, many deals are done with seller financing, and sometimes you can even get 100% of the deal financed that way.
With respect to private equity firms and family offices like Ron mentions. I said in my reply that there are courses on SBA financing, M&A and private equity. I didn’t say whether those courses were good are bad, because again, some are good and some not so much. What I said was that private equity will generally take the lion’s share of the deal if you deal with them. That may or may not be a fit for you and if you can use a strategy that gets you a higher percentage of the return or equity, then that would be a better course of action. Also, PE and family offices generally will only do larger deals, and most people will not be doing deals that are large enough to capture the attention or meet the acquisition criteria of PE and family offices. Hope that helps.
Whats the catch though? Feels to good to be true? How can acquire that? are there any reqirements? Can any idiot or average joe just acquire that?
Barring industries that have license requirements like securities, medical, etc., any average joe can do it. The only requirement is knowing how and then taking action on that knowledge.
So all you have to do is find a person who has made lots of money in a lifetime, but so stupid as to let their baby be sold with zero safety. It seems it's a lot easier to scam people on youtube than make money in business for this poster.
Not zero safety Justin. Start with the approximately 600k businesses that simply close each year. They were going to close anyway and someone coming in to take over can generally do that at $0 out of pocket because the business was going to close anyway had they not shown up. With other businesses that are not closing but are profitable, there are frequently good reasons sellers want to sell and are motivated to do so. Divorce, retirement, health issues, death, partner disputes, relocation, etc. create reasons that a seller would want to sell. Couple that with the fact that according to BizBuySell about 80% of listed business never end up selling. So, think about someone who is motivated to sell, has tried to do it, but was not able to. Those people are generally very flexible in financing a sale. And they are not doing it with zero safety. Generally these sales involve seller financing where a seller receives a promissory note from the buyer secured by the assets of business. It is actually a smart way to sell a business that was not able to be sold previously any other way.
@rolandfrasierepic I am currently in talks of acquiring a 7 figure business as my first deal this can happen I am just not familiar with the closing process and have no council
What seller is doing 100% financing??? No one
anyone
Banks don't want spws so if you get this, kudos
Well no shit.. you don’t say!!
Pretty much no seller will finance 100% unless they’re selling a shit business just to transfer their liabilities.
You’re just speaking your own limiting beliefs lol. You definitely never even tried to acquire a business. If you know about sales it’s not hard to convince an owner to do it. Let’s say they’re asking $1M with $250k down, you can ask them do you absolutely need all the money today? If they say no, you can offer them 0$ down and pay $1.25M.
@@Adrianthegreat1 wtf are you talking about? “Let’s just say” you’re talking out of your ass
@@Adrianthegreat1 perfectly said my friend. And even if they will not finance 100%, they may finance 90% or 80% or 70%, etc. That’s the whole concept of the “deal stack” in exploring all the different ways that you can work with the seller, the assets of the business, the key people in the business, and suppliers and contractors to find ways to creatively finance the deal. :)
@@RolandFrasierEPIC It’s fantastic that you reply . Wow! What is deal stacking ?
In 2022 I sold a very profitable business with 100% financing. The buyer is simply giving me 50% of all revenues for 5 years. Btw- there’s no expense in this business, so the buyer is netting 50%, minus time servicing the clients.
TANSTAAFL