How I doubled the value of my business via one acquisition

– If you want to grow
your business faster, growing by acquisition is
the smartest way of doing it. You see, growing organically
could be hard work, you’re hiring more sales
people, running more adverts, you take two steps forward,
you take one step back, it can be hard going. When you grow by acquisition, you can go from 500,000 revenue to a million, from a million to two, two to five, in kangaroo leaps, rather
than just little bunny hops. So, let me give an example
of how I have done this. One very good example is a business that I’d owned for several
years, that had plateaued around about the 2.2, 2.3
million of annual revenue, and whatever I did, I couldn’t
get it beyond that point, so I hired more sales
people, I ran more adverts, I worked harder, and
it just didn’t happen. And that’s very, very frustrating. So, I decided I wanted to get out because I just didn’t
enjoy the business anymore because I didn’t feel as though
it could ever get any bigger than it currently was. So, my accountant and I looked
through it very carefully, we valued the business,
we were very sensible, we were conservative, we were prudent, we weren’t too excitable about it, and the number that he came
back with was 2.5 million. Now then, life got in the way, just carried on doing
whatever I was doing, going into the office
everyday as an operator, and then an opportunity came along. I was called by the owner of a competitor, and he said, would you
come up and meet me? And I went up to meet him the next day, that was a Monday, I think,
so he phoned me on the Sunday, I went to see him on the Monday, and, essentially, he
wanted to sell the business because he was tired and frustrated, too. So, that was the Monday afternoon, I owned that business Friday afternoon. So, for those people who
say, I haven’t got time to buy a business, well, you know, you can make it a long
process if you really want to, or you can do it quickly, like I did in this particular case. So, in five days, I owned
that business, and as a result of removing that competitor
from the marketplace, and as a result of
utilizing their database, and optimizing their customer-base, we grew faster and faster and faster because the brakes had been taken off. And six months later, I sold that business for seven million pounds. So, we started the year
with 2.5 million in value, and we ended the year
in November of that year with a seven million pound deal. So, here’s my question to you. Could you buy a competitor,
part of your supply chain? Could you buy a complimentary business? Could you buy the same
business that you have, but in a different location? And as a result, double,
triple, quadruple your turnover in the next 12 months, and then, exit the business for a whole lot more than you could if you were selling
the business right now. Now, if that isn’t food for
thought, I don’t know what is. Now, how to do this is in my book. You can get a free copy at I’ve recorded over 100
videos on buying a business, so go to The Dealmaker’s
Academy YouTube channel. Listen to the podcast Business Buying Strategies,
find it on iTunes as well, or come along to one of my seminars. 99 pounds, I’ll teach you six
basic acquisitions strategies, and if you like what you see, then we can work together going forward. I hope that has been a
stimulating video for you. Tell me what you think
in the comments below. And if we’re not connected on LinkedIn, send me a connection
request, I’ll accept it, and then, you’ll be able
to see all these videos every day they come out. See you soon.

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