Selective Acquisition and Navigating Through Opportunities
Podcast:Business Lunch Published On: Tue Apr 02 2024 Description: Welcome to a new episode of Business Lunch. In this episode, we explore strategic business acquisitions and dive deep into the process of identifying, analyzing, and seizing the right opportunities. In a world teeming with potential ventures, understanding how to sift through a variety of options to find those that align with your goals is crucial. This episode unveils the importance of setting clear acquisition criteria to avoid the overwhelming of possibilities and highlights the significance of focusing on sectors and business sizes that promise the best return on investment. Whether you're a seasoned investor or stepping into the arena of acquisitions for the first time, this guide lights the path to making informed decisions that pave the way for success.Highlights:“Steve Jobs said, one of the worst things that you can do is to drown in opportunity. Opportunity is good, but if there's too much opportunity, it creates paralysis, overwhelm, and you end up not doing anything.""The very first step to finding deals is to know what you're looking for. If you don't have acquisition criteria, then you'll look at everything and you might find yourself with a wide array of businesses that don't go together.""The business value in both of these charts that I've shown you is significantly higher when the business gets bigger. That's the big takeaway there."Timestamps:00:00 - Overwhelmed by Opportunities02:29 - Establishing Acquisition Criteria04:50 - Analyzing the Best Industries for ROI07:35 - Avoiding Heavily Regulated Industries10:15 - The Drawbacks of Manufacturing and Wholesale13:00 - EBITDA and SDE Explained15:40 - Impact of Company Size on Multiples18:25 - Professional vs. Owner-Operated Businesses21:10 - Seller Discretionary Earnings (SDE) Insights23:55 - The Value of Business GrowthCONNECT • Ask Roland a question HERE.RESOURCES:• 7 Steps to Scalable workbook • Get my book, Zero Down, FREETo learn more about Roland Frasier 👉 https://msha.ke/rolandfrasier/Connect with me on social:🎵 TikTok: / rolandfrasier 📸 Instagram: <a...