Explore the constellation of advantages that make Partnering for Equity the smartest path to a life-changing exit.
Risk Reduction
De-risk every stage of the acquisition journey.
80% of businesses are not fit to buy. Most businesses are not in a fit state to buy, excluding most buyers from the market. Our Partnering for Equity strategy enables you to acquire equity in these 'high-risk' businesses by reducing the risks by helping them prepare their business for sale or for their management team to operate the business.
Over 80% of businesses cannot sell because their business is not worth enough for them to fund their retirement. Most acquisition deals fail within the final weeks of negotiations when using more traditional methods, because if they sell for 3x of profit, once these funds are invested, they typically pay less than 20% of the profit they made owning the business. On the other hand, our Partnering for Equity strategy is designed to enhance the value of their business by derisking it before selling it.
Avoid the post-sale failures. With traditional strategies, many businesses that are acquired will fail soon after or will cause considerable strains on your time and energy. Fixing issues after you have acquired a business is an extremely high-risk strategy that can be avoided by using Partnering for Equity. However, with our Partnering for Equity model, you and our team will aim to fix many of the problems before you acquire the equity and this method is designed to reduce your risks dramatically.
Growth & Speed
Acquire faster and scale beyond organic limits.
Opens up the market. Partnering for Equity should enable you to engage with the vast majority of your target audience before they consider selling, making you their primary choice to acquire their business. If there are 5,000 businesses in your target audience, probably less than 100 will be actively selling today, and with our help, you can target the other 4,900 as well as the 100 selling.
Acquire more businesses. With traditional methods, you would be lucky to acquire 1 in every 20 business owners you talk to after spending £10,000+ in marketing to create the meetings. The ROAS on traditional methods can be very low. Those being funded to follow the Stanford model often require $300,000 before they can secure their first acquisition. By being helpful and practising the Partnering for Equity model, you should increase the number of leads that you can talk to and convert to acquisitions.
Avoid the crowds. With our Partnering for Equity strategy, we should be able to engage with and then acquire equity in businesses that have yet to decide that they are selling. This constitutes over 95% of your target audience who will be ignoring your competitors' letters, Facebook adverts and LinkedIn approaches. As mentioned earlier, if there are 5,000 businesses in your target audience, probably only 100 will be 'up for sale', and our strategy targets these 100 and the other 4,900.
Faster growth. Acquiring equity in successful businesses with our Partnering for Equity strategy should speed up the acquisition of businesses considerably. That is because by following our principles, you are supporting sellers to prepare their business for sale, rather than simply wanting to buy them. Rather than acquiring 1 in 20 businesses you meet, you could acquire 10 of 20.
Trust & Positioning
Become the authority sellers choose to work with.
To acquire companies, you first need to achieve total buy-in by 100% of the team, and we have developed a process to achieve this. We assess and map the team's structure, their strengths, and weaknesses, and we will close critical skill gaps in the team. We then lead by defining and communicating a clear mission, vision and set of values everyone believes in. This leads to the whole team being inspired, and this creates the trust, clarity and sense of direction that turns the team into advocates. This allows them to grow by investing in training, smart recruitment and the next generation of leaders. We Nurture the team by Building an environment that earns loyalty, drives retention and makes people stay. A critical set of steps prior to improving processes and systems.
We become the 'go-to' people in your sector when someone wishes to sell. Our Partnering for Equity strategy is more helpful and supportive when compared to traditional methods. With traditional methods, we liken the process to being a vulture waiting for an animal to be vulnerable, but our model is helpful and enhances the lives of founders wishing to exit. Traditional business buying methods often alienate sellers, and our strategy is designed to attract them because you are helping them. Being the author of a book should make you a go-to person almost overnight! This should lead to 100x times more engagement and trust from the get-go.
Stand out from the crowd. Our ideal acquisitions will be targeted by 50+ other seekers/ buyers and brokers, with all other buyers using pretty much the same message: 'Are you selling your business?'. Whereas, our Partnering for Equity strategy should enable you to stand out from this crowd by offering a far more helpful, ethical and collaborative approach, and you should be the only one who is an author of a book that's helping them maximise the value of their business. Stand out or lose out.
Overcome the emotional issues of selling a business. Using the Partnering for Equity strategy should enable you to overcome many of the emotional issues that scupper many business sales. That's because you spend time with the owners before you take equity. Ensuring they read your book will lay the foundations for this.
Build 'Know, Like, Trust' with sellers. Most traditional buyers will fail to buy a target business because they have failed to build up the emotional link between themselves and the seller. Our Partnering for Equity strategy is designed to overcome these issues because you are helping the seller prepare their business before you acquire equity.
Financial Advantages
Structure deals that protect and multiply capital.
We gain an initial equity stake without using loans. Our Partnering for Equity model should result in you gaining circa 20%+ equity for improving the business, and not because you have used reserves or finance. Using your own funds or borrowing money to buy a business should be avoided before the business is in a fit state to acquire, and you have spent time with the business. To do otherwise is a fool's errand
Increases the likelihood of 'seller financing'. Partnering for Equity is designed to increase the levels of 'know, like and trust' with sellers and increase the likelihood of them accepting a 'seller financing' deal. We call this our Secured Annuity Bond, and it is designed to enable you to avoid the banks, investors and the dreaded Personal Guarantees.
Turn your Acquisitions into MBOs. Banks and investors should have a greater appetite to fund business acquisitions that we have 'managed' under our Partnering for Equity service. This should lead to smoother growth through a fully funded acquisition. Many banks should consider your acquisition as an MBO rather than an MBI, and this should reduce your funding costs as well as make the acquisition easier to fund.
In Conclusion. Our Partnering for Equity strategy is optimised to acquire equity in a series of profitable businesses with the aim of giving you financial security without leveraging as much debt, considerably more quickly, with far less risk and much more easily than traditional methods. Partnering for Equity should result in a much cleaner and quicker exit to PE
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