Did you know that 30% of funded search funds end up not making an acquisition?

We have bought eight beautiful businesses this year and learned a lot about what works and what doesn’t.

Read below for case studies of the two best (20x) acquisitions I have seen. Happy New Years!

First - you pay for existing profits, but you usually pay nothing for the growth potential. Buying at 4x EBITDA and doubling a business, you now paid 2x. Your loan payments are only based on the price you paid. You keep all the growth as equity.

So there are businesses out there that have both boring, predictable profits today AND potential for substantial growth. Make sure you find one with both.

Business #1: Buyer paid $400k for an ecom business. High margins, bad marketing. Paid about 4x cash flow. Put 100% of his energy on social media growth marketing. Kept going and testing until he had the formula.

Key ingredients there: low purchase price, proven useful product, Hugh margins, poor marketing. The buyer brought the hustle and creativity to scale through social media marketing. It wasn’t a passion product for him, but he liked the market.