Welcome to episode 36 of Invest & Scale! In this episode, we dive into mergers and acquisitions, personal growth, and the lessons learned from buying, building, and flipping businesses — all while living with purpose and adventure.
Our guest, Zach, shares his journey from growing up on a farm to navigating finance, entrepreneurship, and consulting. From the Chicago Board of Trade to buying his first business at 28, Zach’s story is packed with honest insights and practical frameworks.
He explores how real value lies not just in numbers, but in people, vision, and purpose. From consulting distressed companies to global travel and charitable work, Zach highlights the mindsets and emotional intelligence that create freedom in business and life.
If you’ve ever wondered what it truly takes to scale, or how to separate self-worth from net worth, this episode is full of inspiration and actionable advice.
Grab your headphones and enjoy this powerful conversation — only on Invest & Scale.
00:00:11 – 00:02:37: Guest’s Background and Entry into M&A
00:02:37 – 00:06:27: Learning by Doing and Early Deals
00:06:27 – 00:12:58: Building Community, Criteria, and Philosophy
00:12:58 – 00:19:26: Personal Purpose, Giving Back, and Lifestyle Design
00:19:26 – 00:23:07: Managing, Scaling, and Investing Focus
00:23:07 – 00:29:50: Prioritizing Opportunities and Human Factor
00:29:50 – 00:36:32: Frameworks, Scaling, and Emotional Resilience
00:36:32 – 00:45:53: Insights on Detachment, Vision, and Scaling
00:45:53 – 00:52:10: Money, Value, and Mindset Shifts
00:52:10 – 00:55:05: Advice for Aspiring Acquirers & Business Owners
00:55:05 – End: Future Vision and Closing Thoughts
- Grew up on a farm, started learning about money in high school via Peter Lynch’s book.
- Studied finance in college, worked for a real estate investor, then at Chicago Board of Trade as a broker.
- Became a valuation consultant after sending out thousands of resumes, eventually worked at Willamette Management.
- Gained deep expertise in quantitative and qualitative aspects of valuing businesses and intangible assets.
- Bought a pool company in his late 20s with minimal funds—put down payment on a credit card.
- Learned hands-on about sales and marketing, applied forensic accounting to organize finances.
- Flipped the company in a year, implemented systems and processes for remote management.
- Started a real estate investing community in Phoenix with 1,000+ members.
- Began offering accounting services to fill a gap for real estate investors and entrepreneurs.
- Developed the “Fossum” framework: Finance, Operations, Sales, and Marketing.
- Uses this framework to identify and fix problems in distressed businesses, building teams around each area.
- Early goals: travel, help people, make money; found fulfillment by giving back, especially to children’s causes.
- Founded “Learn and Grow Rich” to marry financial education with meaningful impact.
- Embraces location independence: travels while running businesses, currently based in Colombia.
- Finds deeper fulfillment and financial success by slowing down and fostering intentionality.
- Currently invests in AI and systems that clarify financial reporting and planning for clients and portfolio companies.
- Helps CEOs see multiple years ahead instead of focusing only on the next month.
- Believes the value lies increasingly in human relationships and emotional intelligence, not just systems or AI.
- Highlights importance of emotional intelligence in business success and scaling.
- Encourages clients to define their “enough”—using budgeting and envisioning their dream lifestyle to determine true financial freedom.
- Money is fundamentally a medium of exchange—value traded, not just currency.
- Clients who reinvest in themselves and personal growth tend to be most successful.
- Business success stems from understanding and providing real value and solving real problems.
- Use budgets and plans to clarify vision and enable delegation.
Welcome back to another episode of I&S! Today, host Gabriel Murillo sits down with Danny Sanchez, a serial entrepreneur whose journey took him from bussing tables and managing GameStop to building one of the largest floral retail operations in South Florida—and the nation.
Danny shares how he stumbled into his first business acquisition, demystifies SBA loans, and reveals what it takes to scale through buying, selling, and integrating businesses.
He and Gabriel dive into creative deal structures, lessons from acquiring everything from doctor’s offices to flower shops, and the mindset shifts needed to grow from small business owner to major player.
Whether you're an experienced entrepreneur or just curious, you’ll leave this episode with real insights on acquisitions, resilience, and planning your next big move. Let’s dive in!
00:00 Self-Education and Preparing for Success
05:51 Leveraging SBA for Challenging Acquisitions
07:45 SBA Process: Challenges & Changes
13:09 Business Expansion through Acquisitions
15:47 Entrepreneur's Business Acquisition Journey
18:13 Doctors: Business Challenges and New Ventures
20:10 Creative Deal Structures and Financing
25:56 Scaling Business for Investor Trust
27:43 "Pitfalls of High-Interest Asset Loans"
32:05 "Bet on Yourself: Embrace Setbacks"
34:24 Turning Challenges into Opportunities
38:25 Grateful Success in Medellin
41:11 "Navigating Business Growth Challenges"
44:50 Demystifying Venture Capital Deals
47:52 Strategic Growth and Financial Management
49:23 Preparing Business for Sale
1. Introduction and Background
- Danny Sanchez’s early life: Born in New York, moved to Miami at age five
- Initial career path: Attempt at computer animation, realizing limitations
2. Early Entrepreneurial Journey
- Exploration of franchise opportunities: The story of 1-800-Flowers.com franchise- Challenges of buying the first business without capital
3. Entering the Acquisition World
- Introduction to SBA loans and small business acquisitions
- Navigating the SBA 7(a) loan process
4. Risk, Mindset, and Personal Guarantees
- Balancing personal risk in acquisitions over multiple deals
- The importance of discipline, vision, and ongoing evolution in business
5. Criteria and Process for Acquisitions
- Danny’s acquisition criteria: Flexible on deal size, focuses on opportunity
- Examples of recent deals (e.g., buying for $80k then merging/closing stores)
6. Lessons Learned & Shifts in Acquisition Strategy
- Challenges of buying businesses tied too closely to a single owner/doctor
- Importance of building sellable businesses (brand structure, not personal names)
- Acquisition growth: From first retail shop to over 20+ shops
7. Creative Deal Structuring
- SBA loan structure: Down payments, amounts seller can finance
- Evaluating creative models like stock deals, roll-ups, and seller financing
8. Exploring Alternative Financing & Roll-Up Models
- Sale/leaseback and asset-based loans: High-interest pitfalls, relevance to business type
- Experiences from business brokering: Insights from broad industry exposure
9. Mindset, Scaling, and Leadership
- Mindset shifts needed for scaling to $100M+
- Systems building: Importance of procedures, departments, and organizational structure
10. Attachment, Identity, and Business Purpose
- Personal reflections on ego, accomplishment, and gratitude
- Building a company with measurable accomplishments and lasting impact
11. Looking Forward: Expansion and Growth Strategy
-Private equity, venture capital, and family office involvement
- Learning from venture-backed deals, confidence in pitching investors
12. Embracing Technology and SaaS Initiatives
- Development of SaaS tools for the floral industry (Shopify app)
- Integration of tech and AI for operational efficiency
13. Advice for First-Time Buyers and Acquirers
- Trusting instincts: Walking away from deals with red flags
- The value of consulting experts for financial strategy and preparing for potential exits
Welcome to Episode 34 of the "Invest & Scale" podcast, where we dive into the dynamic world of growing businesses with our insightful guest, Brendan Hsu. Brendan, an entrepreneur with a portfolio of seven companies, joins our host, Gabriel, to unravel the strategies behind scaling successful businesses. Throughout this episode, Brendan shares his journey of building Aerial Canvas, a real estate media company, from the ground up to a $7 million powerhouse. He discusses the pivotal roles of sales, team building, systems, and process optimization in driving growth. Brendan further delves into how he has ventured into mentorship, helping over 70 agency owners double their businesses by offering them a blueprint for success.
Listen in as Brendan reveals the art of leveraging multiple businesses, fostering partnerships, and investing mindfully to create a lucrative and sustainable entrepreneurial ecosystem. Together, Gabriel and Brendan explore the nuances of business operations, the importance of equity agreements, and the decision-making process behind investing capital wisely. Don't miss this captivating conversation that promises to equip you with actionable insights for scaling your business to new heights.
00:00 Scaling Aerial Canvas to Success
06:31 Premium Real Estate Media Solutions
13:32 "Maximizing Impact Through Mentorship"
19:00 Leveraging for Outsized Portfolio Growth
25:48 "Negotiate Your Worth: Self-Advocacy"
28:02 Equity Misunderstandings in Business Negotiations
32:45 Streamlining Workflows with Virtual Staffing
38:24 Real Estate Market Crash Survivor
47:58 Understanding Equity and Perspective
51:36 Equity Vesting and Deal Structuring
58:48 Modernizing Small Service Businesses
01:01:56 Investing with Personal Due Diligence
- Discussion on the three pillars of growth: sales, team, systems, and processes.
- Overview of consulting services and other business topics covered.
- Description of Aerial Canvas, a real estate media company, and its growth from $15k a month to scaling it to $7 million a year.
- Discussion on mentorship and consulting company for agency owners.
- Investment in various tangential businesses including virtual staffing, video editing, and software development.
- Explanation of real estate media production as a tech-enabled service rather than a marketplace.
- Insight into employment structures and company benefits.
- Comparison of the company’s high-quality service approach versus other local, less specialized solutions.
- Discussion on scaling, hiring practices, and market adaptation.
- Exploration of personal and business partner dynamics.
- Brendan's passion for startups and business innovation.
- Challenges of working with employees versus entrepreneurs.
- Investment in business partners and the importance of mutual value sharing in partnerships.
- Examples of creative deals and failures.
- Selling and buying businesses as part of Brendan's ventures.
- Overview of equity dynamics, rev share, and phantom stock.
- Discussion on the challenges and best practices in partner negotiations.
- Importance of clear deliverables, vesting, and exit clauses in equity deals.
- Decision-making process regarding deploying capital into various ventures.
- Insights on structuring deals, leveraging experience, and learning from mentorship.
- Advice for newcomers to buying, scaling, or selling businesses.
- Importance of learning from experienced professionals.
- Reflection on personal experiences and future investment considerations.
Resources:
https://www.linkedin.com/in/brendanhsu/
https://www.aerialcanvas.com/
Welcome to a new episode of Invest & Scale! Today, Gabriel and Jacobo delve into an exciting journey of entrepreneurship, investment, and real estate. They discuss Jacobo's transition from starting an E-commerce business in college to acquiring and scaling Airbnbs, and now venturing into the boutique hotel space. This episode highlights the progression from running product-based businesses to focusing on real estate with underlying assets, providing insights into acquiring cash-flowing properties and leveraging funds for expansion. Tune in as they explore the intricacies of real estate investment, the challenge of navigating through different business models, and the significant role of mindset in achieving business success. Whether you're an aspiring entrepreneur or an experienced investor, this episode is packed with valuable lessons and inspiration for your next big move.
00:00 "Leveraging Real Estate for Business Acquisitions"
03:11 Digital Marketing Skills Applied to Airbnb07:25 The Lasting Value of Real Estate Investments
12:34 Hotel Valuation Through Cap Rate and Appreciation
14:58 Shifting Focus: From Airbnb to Business Acquisitions
17:50 Ideal Range for Hotel Acquisitions
20:31 "Role of Real Estate in Business Acquisition"
23:36 Challenges in Analyzing Unsold Properties
28:15 Real Estate Investment Financing Strategy
30:00 Prolonged Business Execution and Exit Strategy
33:16 Strategic Investment and Risk Management
36:40 Strategies for Financing Unreported Sales
42:24 Real Estate Investment Strategy Overview
45:08 Investing in Passion-Driven Business Ventures
47:52 Cultivating Mindset for Business Success
- Journey from starting an E-commerce brand from scratch.
- Risk involved in starting a new business.
- Progressing to acquiring businesses with underlying real estate assets.
- Leveraging funds and raising capital.
- Challenges faced and scale achieved.
- Exit strategy from the E-commerce business.
- Leveraging skills from E-commerce in the Airbnb marketplace.
- Importance of having real estate as an underlying asset.
- Challenges of product-based businesses vs. real - estate.
- Building a portfolio and scaling the business.
- Differences in strategy: starting from scratch vs. leveraging funds.
- Selling the Airbnb portfolio to a private equity fund.
- Regulations affecting Airbnb and advantages of boutique hotels.
- Boutique hotels as commercial Airbnbs with different valuation methods.
- Strategy to force appreciation through operations.
- Perceptions about real estate being slow and for older people.
- Differences between investing in real estate and classic business acquisitions.
- Market and off-market strategies.
- Dealing with brokers and establishing relationships for deal flows.
- Challenges and competition in finding suitable properties.
- Analyzing and structuring deals for boutique hotels.
- Financing strategies: loans, equity, and bridge loans.
- Overcoming risks and ensuring assets cover debts.
- Focus on experiential stays and amenities.
- Creating unique and attractive projects.
- Collaborating with entrepreneurs and using real estate for tax benefits.
- Offering diversification and passive income for investors.
- Importance of mindset in business.
- Visualization and belief in long-term goals.
- Podcasts, books, and continual learning.
- Importance of networking and personal growth.
Resources:
https://www.linkedin.com/in/jacobo-hernandez-747299128/
https://freedomvestcapital.com/
In today's episode, Gabriel sits down with entrepreneur and consultant Jason to delve into the rapidly evolving business landscape. They'll explore the pivotal roles of documenters, automators, advisors, and migrators in modernizing companies, while emphasizing the importance of leaning on service providers during high-leverage activities like acquisitions. Jason shares his journey from software entrepreneur to fractional integration consultant, discussing the formation of his company "Build Your Org" and its mission to augment the Entrepreneur's Operating System (EOS) with automation and AI. Together, they will unpack creative deal structuring, the shifting entrepreneurial mindset towards autonomy, and how to balance vision and integration within businesses. Tune in for an insightful conversation packed with actionable strategies and inspiring stories for every modern business owner and acquisition entrepreneur out there. Let's dive in!
00:00 Serial entrepreneur starts successful enterprise, sells big.
12:41 Learn from mistakes, focus on small acquisitions.
20:18 Started consulting business, gained confidence in acquisitions.
22:30 "Rocket Fuel" by Winters and Wickman describes visionary-integrator relationships.
31:41 Partnering to build software for business automations.
35:53 Best buyers are those already in business.
38:43 Business relationship in Palm Springs leads to success.
43:23 Comparing $3 million business to $500K.
50:05 Shift from growth to services-led profitability in markets.
57:28 Entrepreneurs seeking roles beyond textbook options.
01:05:02 Camera aids pattern matching for business success.
01:06:41 Adapting tech, improving processes, and facilitating deals.
01:12:13 Business owners should rely on experienced practitioners.
- Importance of modernization in business
- Key roles: documenter, automator, advisor, migrator
- Abstracting core processes in 90 days
- Collaboration with automation team
- Lead generation and deal facilitation
- Partnerships with diligence firms and banks
- Post-acquisition integration
- Adapting systems for smooth transitions
- Importance of executing acquisitions
- High-leverage activity requiring support from service providers
- Strategy of overpaying for aligned long-term vision
- Value of mentors and service providers
- Founding "Build Your Works" for post-close migration
- Jason’s emphasis on vision and support
- Jason’s struggles and open invitation for connections
- Discovery of "Build the Process" website
- Collaboration with Adam Schweickart
- Creation of Build Your through a paper swap
- Acquisition for EOS integration and coaching
- Applying principles to various industries
- Business growth experience
- First consulting inspired by "Rocket Fuel"
- Consulting focus on equity and profit shares
- Alternative acquisition models without cash
- Hypothetical business acquisition scenarios
- Importance of deal structuring
- Need for adaptation in EOS
- Introduction of facilitator role
- Supported by books like "Rocket Fuel"
- Move towards non-W2 and K1 income
- Preference for services-led growth
- Different structures for income and autonomy
- Personal transition experiences
- Learning from business acquisition mistakes
- Technical aspects and format discussion
- Jason’s software and entrepreneurship background
Welcome back to another episode of Invest & Scale! I’m your host, Gabriel Murillo, and today we’re diving into an inspiring conversation with Alex Pikovsky. With a career spanning investment banking, venture capital, private equity, and entrepreneurship, Alex brings a wealth of experience and adaptability to the table.
From starting in investment banking focused on natural resources to investing in early-stage tech and scaling businesses in industries like cannabis, psychedelics, and SEO, Alex’s journey is nothing short of remarkable. In this episode, he shares invaluable lessons on navigating challenges in family offices, scaling a scented candle brand, and transitioning to funding small business buyers.
Grab your headphones and get ready for actionable insights and inspiring stories from Alex Pikovsky on Invest & Scale!
00:00 Built CBD marketplace, pivoted to agency and acquisitions.
08:18 Top VC firms outperform due to high demand.10:08 VCs help more if you're already succeeding.
14:57 Family offices are difficult; consider angel investors.
19:56 Focused on wellness, sourced brands via databases.
24:55 Raised $4M, cannabis promise unfulfilled, maintaining investor trust.
29:10 SBA program unique; venture debt risky alternative.
32:21 Inventory mismanagement hindered growth; strategy improvements boosted success.
37:24 Focus on profitability and omnichannel expansion.
42:21 E-commerce acquisitions are challenging, focus essential.
45:30 Embrace lifelong learning, adapt to new industries.
49:03 Embrace industry evolution; avoid rigid identity labels.
- Began in investment banking in 2010 with a focus on natural resources, power, and chemicals.
- Obtained a master's degree in oil, gas, and mining at Imperial College London.
- Transitioned to venture capital, investing in early-stage technology.
- Gained experience across various industries including cannabis, psychedelics, Amazon, and SEO.
- Emphasizes the significance of transitioning between industries.
- Advocates for continuous learning using the 10,000-hour rule as a metaphor.
- Launched the podcast SaaS Minds to explore software-as-a-service (SaaS) businesses.
- Characteristics of businesses suitable for private equity.
- Use of leverage for acquisition to enhance returns.
- Challenges faced in private equity including high valuations and market conditions.
- Experience with acquisition strategies, especially in the wellness sector.
- Sale of a large German fertilizer business.
- Managing pressure due to debt and acquisition strategies.
- Discussion on private equity as an asset class, especially in declining valuation periods.
- Focus on the wellness sector due to CBD marketplace background.
- Methods for sourcing deals, including Amazon scraping, databases, and broker outreach.
- Acquisition of a smaller scented candle brand and post-acquisition challenges.
- Enhancements in marketing efficiency and product development.
- Geographic expansion to the UK, Germany, Canada, and Mexico.
- Future opportunities including agency growth, brand sales, and exploring new markets.
- Differences between VC and private equity.
- Average returns for VC funds and challenges in raising VC.
- Networking importance and value creation in VC.
- Case studies like Rand Fishkin’s Moz for illustrating risks in VC funding.
- Raising $4 million and managing investor relations.
- Dynamics in the cannabis market following legalization expectations.
- Funding mechanisms including venture debt funds and managing high-profit margin acquisitions.
- Importance of expanding omnichannel retail and D2C presence.
- Discussions about selling the agency for further growth or raising more capital.
- Reflections on growing from zero to one million vs. one to ten million in revenue.
- Emphasis on singular focus and strategic planning for growth.
- Insight into industry trends, operational strategies, and scaling businesses.
Welcome to the I&S podcast, where we delve into the world of business acquisitions, entrepreneurship, and personal development. In this episode our host Gabriel Murillo engages in a conversation with Chirag Shah, owner of Sit Means Sit, a dog training franchise in Austin. Chirag shares insights into his business acquisition journey, the emotional and practical challenges of staff management, and his strategies for scaling and improving his business's sales processes.
From the highs of increasing his close rate to the lows of dealing with staffing challenges, Chirag's experiences provide valuable lessons for any business owner or entrepreneur. Tune in as we explore the rollercoaster ride of owning and growing a business, and the personal growth that comes with it.
00:00 Collar used for attention in dog training.
05:52 Affordable and well-functioning business met expectations.
09:04 Reviewed numerous deals, submitted LOIs, contracted 2.
11:13 Discussing emotional and financial factors in business purchasing.
15:46 Tenant turnover leads to lower income risk.
19:22 Focused on sales, growing company's revenue. Limited expansion.
22:15 Progressing in sales, aiming to scale further.
26:43 Glad you're sharing real, conversational thoughts.
27:35 Dealing with post-deal matters in business.
30:46 Doubts about leadership and decision-making still linger.
36:08 Learn the lesson, take care of sales.
39:15 Reading only when necessary; tired of self-help.
43:17 Training dogs to improve life and relationships.
47:01 Benefits of sharing with a business coach.
49:52 Embrace challenges as opportunities for personal growth.
51:15 Focused on hiring more trainers and consultants.
Primary Topic: Chirag's Business Acquisition and Operations
- Acquisition of Sit Means Sit franchise in Austin
- Interaction with brokers and VA
- Costs and seller note
- Personal reasons for the acquisition
- Business performance and challenges
- Sales improvement and focus on scaling
- Staffing issues and team changes
- Emotional and practical challenges of staff turnover
- Impact of team changes on leadership
- Chirag's resolve and determination
- Chirag's management and personal routine
- Morning routine, exercise, and meditation
- Emotional fulfillment and impact on sales
- Resolving to move out of sales
Business Growth and Sales Strategies
- Fulfillment from dog training and business performance
- Increase in reviews and reputation
- Impact of dog training on people's lives
- Analogies of training a business and acquiring leadership
- Seeking business coaching and mentorship
- Different coaching types and strategic planning
- Experiences and benefits of coaching
Personal and Professional Development
- Self-growth and leadership
- Importance of challenging experiences
- Plans to hire and grow the business
- Rapid changes and personal development
- Property management and business revenue
- Active involvement in real estate
- Strategies for business growth and efficiency
- Deal acquisition process and emotional challenges
- Timeframe and motivation for the acquisition
- Emotional challenges and comparison with property investment
In this episode of I&S, our host Gabriel Murillo sits down with guest Shane, the new owner of North Texas Trailers, a multi-location trailer dealership. Shane shares the inspiring story of his journey from corporate America to acquisition entrepreneurship, discussing the challenges, fears, and motivations that led him to take the leap into business ownership. From navigating the complexities of dealership and manufacturer relationships to his ambitious plans for business expansion, Shane's insights into sales processes, employee experience, and potential acquisitions provide a compelling narrative of growth, determination, and the pursuit of success. Join us as we delve into Shane's fascinating entrepreneurial odyssey and gain valuable perspectives on the trials and triumphs of small business ownership.
00:00 High stress and busy job leads to entrepreneurship.
09:51 Challenges of career loyalty and relationship changes.
13:32 Overcoming job loss, seeking entrepreneurial opportunities.
16:24 Father encourages using 401k, take big risk.
20:08 North Texas Trailers: a trailer dealership summary.
24:41 Car dealerships have manufacturer partnerships, trailer dealerships do not.
26:17 Buying and reselling from manufacturers raises challenges.
29:52 Uncertain about future, considering business expansion options.
33:15 Generate leads, convert to sales, improve processes.
37:02 Outsource, focus on business, and sales strategy.
39:44 Sell to anyone, focusing on government entities.
44:29 Explore all deal-making options to benefit both.
46:44 Evaluate risk versus reward for pursuing entrepreneurial path.
- Shane's Journey to Business Ownership
- Influence of Shane's Father's Small Business Ownership
- Transition from Corporate Leadership Roles to Entrepreneurship
- Decision to Pursue Business Ownership After Being Laid Off
- The Trailer Dealership Business
- Operations and Relationships Between Dealerships and Manufacturers
- Vision for Expansion and Growth in the Trailer Dealership Business
- Initiatives to Improve Sales Processes and Employee Experience
- Business Development and Marketing Strategies
- Investing in New CRM and Customer Communication Platforms
- Focus on Online Sales and Digital Marketing
- Exploring Paid Advertising and Metrics Evaluation
- Business Acquisitions and Deal-Making Strategies
- Criteria for Acquiring New Businesses
- Potential Acquisitions and Property Purchases
- The Importance of Creative Deal-Making Strategies and Seller Incentives
- Reflections on Entrepreneurship and Business Ownership
- Emotions, Anxieties, and Fears in Decision-Making
- Realization of the Lack of Security in Long-Term Employment
- Rewards and Stress of Business Ownership
- Future Plans and Acknowledgement of Potential Opportunities
- Anticipation for Future Connections and Growth
- Conclusion of the Conversation with Mutual Appreciation
Welcome to Episode 29 of the Invest & Scale, "Masters of the Deal: Acquisition Strategies and Growth Insights." Today's episode features a gripping dialogue with Diego Cerezo, an entrepreneur who transitioned from running a Guatemalan craft brewery to mastering the art of business acquisitions in Latin America.
Diego tells us about the influences that triggered his shift towards acquiring businesses and shares his personal experiences navigating the unique challenges of Latin America's acquisition landscape. We’ll also explore creative financing arrangements, the significance of partnerships and mentorship, and the critical role of strategy in managing a diverse portfolio of companies.
Get ready to dive into a world where deal-making meets strategic foresight, and introspection becomes a cornerstone of success in business acquisitions. Whether you’re a budding entrepreneur or an experienced professional, this episode is brimming with valuable takeaways.
Now, let's roll the intro music and get ready for an enlightening session on "Investment Scale" with Diego Cerezo. Stay tuned!
00:00 Diego Cerezo shares journey of buying business.
05:43 Dad's guidance made the first acquisition successful.
07:41 Latin American business culture differs from the US.
11:17 Tough negotiations led to creative payment terms.
15:35 Discipline and commitment lead to business rewards.
18:50 Delegate operations, focus on strategy, oversee projects.
20:28 Admitting humility unlocks greatness in building teams.
24:38 Podcast discusses different ways to acquire businesses.
27:20 Guatemala partner sets up meetings, revenue share.
30:51 Innovative approach to niche ecommerce advertising strategy.
34:43 Considering acquisitions beyond Guatemala: b-to-b, low capex.
37:37 Tips for business: introspection, focus on cash flow, collaboration.
41:10 Excitement and possibility lead to big dreams.
- Entrepreneurial shift from craft brewery to acquisitions.
- Influence of personal and educational background on decision to enter acquisitions.
- Comparison to US acquisition culture.
- Challenges of a more relationship-driven market.
- Diego's personalized approach to sourcing deals.
- The intensive 15-month journey to acquire a tech company.
- Creative revenue-share agreements and company acquisition options.
- Learning resources for acquisition skills.
- Essential tips for first major acquisitions.
- Importance of cash management with profit first methodology.
- Focus on long-term growth and the strategic role.
- The significance of mentors and partnerships.
- Benefits of collaboration for business success.
- Diego's commitment to investing in education and tourism.
- Anticipation of future in-person meetings and continued exchanges.
- Diego oversees strategy for multiple companies with varied industries.
- Long-term investment vision for portfolio businesses.
- Acquiring businesses to facilitate regional growth.
- New methods beyond traditional SBA loans for business acquisitions.
- Real-life example of a revenue-sharing deal with an option for investment or income.
Diego Cerezo's Linkedin:
https://www.linkedin.com/in/diegocerezo/?originalSubdomain=gt
Welcome to the I&S podcast, where we delve into the world of entrepreneurship, business acquisition, and personal development. In today's episode titled "Oscar Jaramillo," our host Gabriel Murillo welcomes the inspiring entrepreneur and business owner, Oscar Jaramillo. Oscar shares his journey from a corporate career at Nestle Waters North America to becoming a successful business acquirer. He takes us through the proactive and meticulous process of acquiring a suitable business, emphasizing the impact of personal skills, the importance of human capital, and the need for a balanced approach to entrepreneurship. Join us as we explore Oscar's insights, personal challenges, and the unexpected surprises of business ownership, all while gaining valuable advice and lessons learned from his inspiring entrepreneurial journey.
00:01:34 First acquisition at 22: a restaurant mistake.
00:06:00 Understanding buyer psychology is crucial for success. Empathy is a CEO's biggest tool. Acquisition mistakes can be costly and avoidable.
00:10:32 Cut salespeople, focus on strengths, avoid management.
00:14:58 Switching companies, need familiar people; limit reports. Avoid unnecessary meetings, prioritize scaling. Care for team individually but not in meetings. Working on a 100 million EBITDA opportunity. Acquisition potential in 100-200 million range. It's a game; changing lives; exciting.
00:19:09 Thinking win-win, building wealth for all.
00:23:10 Ecommerce companies struggle with cash flow, unlike agencies.
00:26:30 Avoiding bosses, expanding outdoor brands, supporting struggling founders.
00:28:51 Synergy is crucial, bankruptcies are imminent.
00:35:29 No money down deals, money out of pocket, misconceptions, contracts, trust.
00:38:20 Busy meetings, focused on valuable content.
00:40:42 "Great people and collaboration bring success."
In today's digital age, online businesses are thriving, offering investors a unique opportunity to tap into this growing market. In a recent podcast episode, the founder of Black Book Investments discussed their journey in starting and growing a micro private equity company that buys and operates a portfolio of online businesses. This article will explore the key insights shared in the podcast, from the importance of due diligence to investing with Empire Flippers Capital and the future vision of Black Book Investments.
The Journey to Black Book Investments
The founder of Black Book Investments started working at a startup before experimenting with blogging. While blogging did not bring immediate financial success, it helped develop essential skills in building websites and writing content. This experience eventually led to the first successful venture of buying and selling online businesses. The founder emphasized the importance of learning from scams and focusing on evergreen niches when purchasing businesses.
Investing with Empire Flippers Capital
The podcast also discussed working with Empire Flippers Capital, a fractional investing platform that bridges the gap between investors and experienced operators. The founder shared an example of one deal where a website's income doubled in just six to eight months by implementing on-page SEO, technical SEO, and other improvements. This success story highlights the potential of investing in online businesses through platforms like Empire Flippers Capital.
Blackbook's One-on-One and Group Investment Strategies
Black Book Investments works with investors through one-on-one or group buys, helping them find the right business to invest in. They handle the entire deal process, including negotiation, escrow, and business transfer. Black Book charges a 10% finder's fee and provides monthly management services for a retainer starting at $1,500 per month.
Investing in Online Businesses: Risks and Rewards
The podcast also touched on the historical return on investment (ROI) provided by Black Book Investments, ranging from 20% to 30% annually over the past seven to eight years. First, however, it is essential to understand the risks associated with investing in websites, such as Google updates and Amazon commission cuts. Despite this asset class's high-risk, high-reward nature, the founder envisions Black Book Investments becoming a New Age media company owning multiple high-value brands.
Conclusion
Investing in online businesses offers a unique opportunity for investors to tap into the growing digital market. Black Book Investments provides a platform for investors to invest in a diverse range of online businesses while benefiting from their expertise in managing and growing these ventures. As the digital landscape continues to evolve, investors looking to participate in and capitalize on the growth of online businesses should consider exploring opportunities with companies like Black Book Investments.
Disclaimer: The content presented on the Invest and Scale podcast website is for informational purposes only and should not be considered legal or financial advice. The hosts and guests of the show are not attorneys or financial advisors and do not provide legal or financial advice. The information provided on this website is not intended to create an attorney-client or advisor-client relationship and should not be relied upon as legal or financial advice. Please consult with a licensed attorney or financial advisor in your jurisdiction for legal or financial advice specific to your situation.
In this episode, we have Hunter Durham, who was a Facebook employee who turned into an acquisition entrepreneur. During the interview, he shares his journey from consulting, to join a marketing agency, to buying his first business, to being presented with the opportunity to buy two companies simultaneously. It's a great story, and it's a great mindset about buying a business. In addition, we'll discuss the worst thing that could happen when buying a business.
Podcast Highlights:
Hunter manages over 7 million in revenue per year and has over 3.6 million in business loans.
He talks about how his background led him into eCommerce and digital marketing.
He shares the story behind his first business, theylaugh.com, and explains what they offer.
In the early part of 2020, Hunter was introduced to search funds, the whole search fund movement, and the ETA movement, and spent basically January to February of 2020 putting together the documents, building the network, starting to reach out to people I thought might be investors, and building the broker list.
When e-commerce exploded, they launched an agency and it turned out to be their first successful business into entrepreneurship.
For Hunter, business is about people in general.
He shares that he loves reading books and getting powerful information, and that's how it all started for him. Book : Buy then Build Walkers book. I got the buying a small business HBR guy
He describes how he acquired his first acquisition and where it came from.
As he talks about his first acquisition, he speaks about some challenges and obstacles he encountered.
The importance of emotional connection when talking to the seller in the acquisition process.
Hunter believes that the personal guarantee part is what prevents most people from selling their business.
Hunter realized that in order to provide the best customer service, he needed home delivery furniture for his second acquisition..
He explained how one deal ended up turning into two.
His advice to entrepreneurs and researchers interested in acquisitions.
Tweetable Quote:
“It's just about trusting that person to be able to do it.”
“ I do business to try to impact others and impact people.”
“The only unique thing that you have is you and your story and your vision and your goals for their business. And so I think if that's ultimately what's gonna win, you deal over somebody else, it's you.”
Resources mentioned:
https://mobile.twitter.com/huntercdurham
https://buythenbuild.com/about/
https://www.amazon.com/HBR-Guide-Buying-Small-Business-ebook/dp/B01KP33K4Y
Jim Edmunds worked in business development for a retailer before graduating from business school. He holds an MBA from Stanford Graduate School of Business and an A.B. from Harvard. In 2004, he worked for a search fund with someone he had worked with on Wall Street after business school. Eventually, they bought a portrait studio business in the Midwest. A guy named Rich Kelly, who was the lead investor in his deal during the Lehman Brothers recession, asked him to join search fund partners in 2008. Since then, he has been working at SearchFund Partners.
Search Fund Partners is a small private equity fund that invests exclusively in traditional search fund entrepreneurs. In the past 15 years, Jim has served on the boards of 15 or 20 companies, and has worked with awesome entrepreneurs and built some pretty exciting companies.
Podcast Highlights:
Resources mentioned:
https://searchfunds.net/
jim@searchfunds.net.
Jeffrey Evenson attended West Point, a military academy in New York. And then he joined the army for just a short time after leaving West Point. After grad school, he earned an MBA, gained a lot of knowledge about finance, and ended up trading stocks as a job. Eventually, he moved from the trading business into investment management, working for a boutique investment manager. Then he became a pension fund manager for Anheuser Busch in St. Louis. While he was managing pension funds there he kind of thought he should probably learn how to sell beer and so he did and became involved in the sales operations side of that business. Then he ended up working in a mergers and acquisitions group. Basically, they were buying and selling distributors of beer and wholesalers of beer. For him, that was the first time he really understood what you learn about mergers and acquisitions in grad school.
Podcast Highlights:
Resources Mentioned:
Russell Benaroya is an entrepreneur with a background in corporate finance and private equity. Prior to becoming a Partner at Stride, Russell was the Senior Vice President of Corporate Development for Higi, a population health enablement company that owns the largest national network of health screening stations. He was an investment professional for the private equity firms Kline Hawkes and Blue Point Capital, where he invested in healthcare, technology, and industrial-based enterprises. He is also an author, entrepreneur, coach and speaker focused on helping people achieve their highest and best use by staying in their genius zones.
Podcast Highlights:
Tweetable Quote:
“We have a choice: We can either let fear drive us to retreat, or we can be courageous and take a leap knowing, you've always figured it out.” -Rusell Benaroyoa
“Patience is a form of action and it's a form of discipline.” -Rusell Benaroyoa
Resources Mentioned:
https://stride.services/
https://www.linkedin.com/in/russellbenaroya/
https://www.thebenaroyagroup.com/about
https://twitter.com/rbenaroya
Juan was the CFO for a company called Cabify, like Uber in Spain and Latin America. He had previously worked as an engineer in private equity, investing in banking. He considered himself a tech and finance guy. He started his own company Boopos in May 2020 to provide financing to people who want to acquire businesses. He decided to start his own business. And learned about all these aggregators that were buying companies based on data that they were pulling from the Amazon market.
The big pain he discovered was that many, many buyers lacked the cash or funding to acquire the businesses they were seeking. So there were a lot of talented people that would. Out of the market because they didn't have the right partners for funding. And that's why in late 2020, he started Boopos to help all these people acquire businesses by providing them M&A financing.
Podcast Highlights:
Resources Mentioned:
https://twitter.com/jgbraschi?lang=en
https://www.boopos.com/
On this episode, we talk with Ryan Kulp about his artistic and creative journey, as well as some exciting news about this business portfolio. He is the founder of Fork Equity and MicroAcquisitions.com
Podcast Highlights:
Tweetable Quote:
"It's like playing Russian roulette." Warren Buffett
Resources Mentioned:
https://www.ryanckulp.com/
https://fomo.com/
https://www.forkequity.com/
https://twitter.com/ryanckulp
Lucas McCann is the owner of CoreAffinity.com, he has acquired over 3 businesses in the past 4 years with his partners. In this episode, he talks about the importance of thinking of acquisitions as a team sport vs. as a solo sport. He shares with us the core strategy they use every time they speak with a potential seller, especially when it comes to off market deals, and how they incorporate these principles and utilize the better together framework.
Podcast Highlights:
Tweetable Quote:
“Real-life examples have really helped us better our process and better our approach to the relationship and negotiations.” - Lucas McCann
“Never burn a bridge.” - Lucas McCann
Resources Mentioned:
Ujwal Velagapudi shares in this episode the lessons he learned from every acquisition he has made, how to develop a resilient mindset throughout those acquisitions, and what it takes to move from five-digit to eight-digit deals and beyond. With his real estate investing background, he was able to purchase his first business while also working full-time.
Podcast Highlights:
Resources:
https://www.linkedin.com/in/ujwal-velagapudi-4a457a15/
