12 Concepts We Can Learn About Buying VS. Building a Business on How2Exit's Interview W/ Walker Deibel - Watch Here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Learn From Stock Market Mistakes
The stock market can be a tricky place to navigate, filled with risks and rewards. For many, it can be a daunting experience, filled with the possibility of making costly mistakes. Walker Diebold, bestselling author of “Buy Then Build: How to Acquisitions Entrepreneurs Outsmart the Startup Game,” experienced the stock market firsthand as a stockbroker and learned valuable lessons from his experiences.
Walker began his career as a stockbroker, advising clients on asset allocation and executing trades. During the tech boom, his job was exciting, but during the tech bust he was assigned to the inbound margin call; people who had received a margin call and were in distress. Through these experiences Walker learned the importance of making smart decisions when it comes to investing in the stock market.
Walker’s experiences have taught him that it is important to have a sound understanding of the stock market before investing. He advises that investors should have an understanding of the different types of stocks available and how they work, as well as the different investment strategies that can be used. Additionally, it is important to understand the different types of risks associated with investing in the stock market, such as market volatility and the potential for losses.
Walker also believes that it is important to do research and understand the company you are investing in. He recommends that investors look into the company’s financials, track record, and management team before investing. Additionally, it is important to understand the company’s competitive landscape and how the company is positioned in the market.
Finally, Walker emphasizes the importance of diversifying investments. He believes that investors should have an understanding of the different types of investments available and how they can be used to diversify their portfolio. This includes understanding the different types of stocks, bonds, mutual funds, and other investments available.
Walker’s experiences have taught him the importance of making smart decisions when it comes to investing in the stock market. By understanding the different types of stocks, understanding the company you are investing in, and diversifying your investments, you can avoid costly mistakes and increase your chances of success.
Concept 2: Fastest Route To Corner Office
Walker realized that starting a business from scratch is a risky endeavor. The odds of a startup completely failing are immense and even if you are successful, 96% of them will never exceed a million dollars in annual revenue. He decided that he wanted to reverse this equation and buy a business instead. He knew that if he could buy a company, even if it was just doing a million, two, three million in revenue, it would be miles away from a startup.
By doing this, Walker would have access to revenue, infrastructure, cash flow, customers, and he would own all of the equity of the company. In 2018, Walker released his book “By Then Build” which was inspired by this idea. He realized that this was a much more sustainable business model than startup entrepreneurship and it was the fastest route to the corner office.
Walker’s story is an inspiring one. It shows that it is possible to achieve success without taking on unnecessary risks. By understanding the market and making smart decisions, you can find the fastest route to the corner office.
Concept 3: Innovative Time In Publishing
Walker’s journey began with a desire to build wealth. He had a traditional MBA and was looking for a way to make the most of it. After some research, he realized that owning a business was the most direct way to build wealth. He started reaching out to his network and interviewing people who had done it before. He even reached out to his MBA professors, who told him it was a bad idea.
Walker eventually decided to take a job in corporate America, but he was still looking for a business to buy. He started looking for an online business, but he couldn’t get any financing. He then realized that he could get financing if he bought a company with assets. He found a book printing company that was doing eight million in revenue.
At the time, everyone in his age group was running away from the printing business. It was seen as outdated and not worth investing in. Walker, however, saw potential in the industry. He saw that the rise of online book purchasing was driving two huge trends: digital book printing and an exponential increase in the number of people writing and publishing books. He realized that this was the most innovative time in the publishing industry since Gutenberg.
Walker’s story shows that it is possible to find success by understanding the market and making smart decisions. He was able to find a business that was not only profitable but also had the potential to be innovative. By taking the time to research the industry, Walker was able to create a successful business.
Concept 4: Acquire Businesses To Grow Faster
Walker’s success was not just luck. After his first exit, he decided to try another startup. He recruited an executive from Microsoft and was able to get beta programs running in seven companies. Despite his best efforts, the company ran out of money within 18 months. Walker was not deterred and went on to acquire six more companies over the next three years.
During this time, Walker took the time to learn everything he could about the private capital market. He wrote a book, By Then Build, and released it in 2018. The book was a success, and Walker was able to gain attention from Forbes. He then created Acquisitions Lab, an educational platform to teach others how to acquire businesses to grow faster.
Walker coined the term “acquisition entrepreneur” to describe someone who buys businesses instead of building them. He believes that organic growth and acquisitions are both great ways to grow a company. He believes that acquisition entrepreneurs are able to build value from the start, rather than starting from scratch and giving away 49% of their company.
Walker’s story is a testament to the power of understanding the market and making smart decisions. By taking the time to research and understand the private capital market, Walker was able to create a successful business. He was also able to create a platform to teach others how to acquire businesses to grow faster. Walker’s story shows that it is possible to find success through smart decision-making and understanding the market.
Concept 5: Access Money For Acquisitions
Accessing money for acquisitions can be a daunting task for entrepreneurs. Traditional methods of raising capital, such as venture capital and angel investments, require a great deal of time and effort. Additionally, these methods can be difficult to access for those who are new to the business world. Fortunately, there are other ways to access money for acquisitions.
One of the most popular ways to access money for acquisitions is through private capital. Private capital is money that is invested in a business by private investors, such as family members, friends, and wealthy individuals. Private capital can be used to acquire businesses, start new ones, and expand existing ones. Private capital is often easier to access than traditional methods, as it does not require a lengthy application process or a large amount of money.
Another way to access money for acquisitions is through crowdfunding. Crowdfunding is a relatively new concept that allows people to invest in a business or project. The money is usually raised from a large group of people, often through an online platform. This method of raising money is often used for start-ups and new businesses.
Finally, debt financing is another way to access money for acquisitions. Debt financing involves borrowing money from a lender, such as a bank, to purchase a business. This method of financing is often used by larger companies and can be a great way to access money for acquisitions.
In conclusion, there are a variety of ways to access money for acquisitions. Private capital, crowdfunding, and debt financing are all viable options for entrepreneurs who are looking to acquire businesses. Understanding the different options available and researching the market can help entrepreneurs make the best decision for their business.
Concept 6: Buy Businesses, Not Build Them
Acquiring a business has recently become a popular option for entrepreneurs looking to start a business or expand their existing business. Acquiring a business is often seen as a more efficient and cost-effective way to enter the market or expand an existing business. While the traditional route of starting a business from scratch can be a long and arduous process, buying an existing business can provide entrepreneurs with a number of advantages.
The first advantage of buying a business is that it provides an entrepreneur with an existing customer base and a proven business model. This means that entrepreneurs are able to hit the ground running, as they already have a customer base and a proven business model in place. This also allows entrepreneurs to focus on expanding and growing the business, rather than having to start from scratch.
The second advantage of buying a business is that it provides entrepreneurs with a margin of safety. This is because businesses that have been operating for decades have already proven their ability to generate cash flow and have a proven track record. This means that there is less risk associated with the acquisition, as the business already has a proven track record of success.
The third advantage of buying a business is that it provides entrepreneurs with a higher return on investment than any other asset class. This is because the private capital markets have had the highest returns of any other asset class for decades. This is due to the fact that businesses tend to appreciate in value over time, as opposed to real estate which tends to appreciate at a slower rate. Furthermore, businesses can provide entrepreneurs with multiple expansion opportunities, as they are able to increase the appreciation value of the business.
Finally, buying a business provides entrepreneurs with more control over the asset. This is because businesses require active investment to increase their appreciation value, whereas real estate is considered a passive investment. This means that entrepreneurs are able to actively increase the appreciation value of the asset, as opposed to having to rely on external factors to appreciate the asset.
Concept 7: Acquire Businesses With Passion
Acquiring businesses can be a great way to start or expand a business. It is a process that has become increasingly popular over the last few years. However, it is not a decision to be taken lightly. It requires a great deal of research, planning, and passion.
Walker Deibel, an entrepreneur and founder of the Acquisition Lab, knows this all too well. He has seen firsthand the incredible potential of acquiring businesses. After attending an entrepreneurship through acquisition conference and being asked to help find and buy a business, he realized that it was not enough to just have the money to buy a business. He also needed to have the passion and dedication to make it work.
Walker Deibel's experience has taught him that it is important to listen to the employees and the market, use marketing skills, and have a deep understanding of the business. It is also important to have the right team in place to make the acquisition successful. He advises that entrepreneurs take the time to research the business they are considering buying and make sure they have the right people in place to help them succeed.
The Acquisition Lab has been incredibly successful since its inception in 2019. Walker Deibel and his team have helped over 150 members acquire businesses, with over 30 acquisitions in 2021. This success is a testament to the dedication and passion that Walker and his team have for helping entrepreneurs succeed.
Acquiring a business is a great way for entrepreneurs to get started or expand their business. It requires a great deal of passion and dedication. It is important to take the time to research the business and make sure the right people are in place to make the acquisition successful. Walker Deibel and the Acquisition Lab are a great example of how entrepreneurs can acquire businesses with passion and make them successful.
Concept 8: Acquire, Build, Exit, Succeed
Walker Deibel and the Acquisition Lab have had remarkable success in acquiring businesses. They have closed 70 million in acquisitions in the last year alone. This is an impressive feat, especially considering the average acquisition is around 2 million. Walker Deibel and the Acquisition Lab have also been able to create a market out of nothing by creating demand on both sides of the transaction. This is a great example of how entrepreneurs can create success from nothing.
Acquiring a business is just the first step in the process. Once the business is acquired, it is important to build upon it and add value. This can be done by improving the product or service, expanding the customer base, and increasing the efficiency of the business. Once the business is built up and running smoothly, it is time to exit. Exiting a business can be a life-changing event, as it is often the point at which entrepreneurs make the most money.
Acquiring, building, and exiting a business is a great way to create success. Walker Deibel and the Acquisition Lab are a great example of how entrepreneurs can acquire a business, build it up, and exit to make a life-changing amount of money. By taking the time to research and select the right people, entrepreneurs can acquire, build, exit, and succeed.
Concept 9: Know Your Strengths
However, it is important to know your strengths and weaknesses. Walker Deibel realized that he was more passionate about transactions than he was about operating his own businesses. He had put in the time, money, and effort to become an expert in the acquisition process and was able to help entrepreneurs exit their businesses. He was also able to use his knowledge of the private capital market to find deals that worked for both the buyer and the seller.
At the same time, Walker Deibel was also able to recognize the areas where he was not an expert. He knew that he was not interested in restaurants because of their low profit margin and difficulty to manage. He also knew that the software and service industries were overpriced and that he was better off looking for non-sexy businesses that provided cash flow and jobs to local communities.
Knowing your strengths and weaknesses is key to success in any endeavor. Walker Deibel was able to use his expertise in the acquisition process to create success. He was also able to recognize that he was not an expert in certain areas and focus his efforts on those that he was more knowledgeable about. By taking the time to understand his strengths and weaknesses, Walker Deibel was able to craft a successful business plan and create a life-changing exit.
Concept 10: Power Lies In Amazon Reselling
When it comes to Amazon reselling, power lies in understanding the nuances of the business. Walker Deibel realized that Amazon has the power to make or break a business. He knew that if he was to be successful in Amazon reselling, he would need to be aware of the potential risks and rewards. He also recognized that Amazon has the power to disrupt the market and change the rules of the game.
Walker Deibel also realized that the key to success in Amazon reselling was understanding the five forces of Porter’s Model. He knew that the power lies in understanding who has the power in the equation and where the power lies. He was able to use his knowledge of the five forces to craft a successful business plan and create a life-changing exit.
By understanding the power dynamics of Amazon reselling, Walker Deibel was able to create a successful business. He was able to recognize the potential risks and rewards and craft a business plan that enabled him to maximize his profits. He also was able to recognize that Amazon has the power to disrupt the market and change the rules of the game. By understanding the power dynamics of the Amazon reselling industry, Walker Deibel was able to create a successful business and a life-changing exit.
Concept 11: Take Control Of Your Business
Walker Deibel's experience provides a great example of what it takes to take control of your business. His story illustrates the importance of understanding the power dynamics of your industry and the importance of being able to recognize potential risks and rewards. Walker was able to craft a business plan that enabled him to maximize his profits and minimize his risks. He also was able to recognize that Amazon has the power to disrupt the market and change the rules of the game.
Walker's story is a great example of how taking control of your business can lead to a successful and life-changing exit. He was able to recognize the potential risks and rewards and craft a business plan that enabled him to maximize his profits. He was also able to recognize the power dynamics of the Amazon reselling industry and use it to his advantage.
Walker's story illustrates the importance of understanding the power dynamics of your industry and the importance of being able to recognize potential risks and rewards. It is also important to be aware of the potential for disruption and to be prepared to adjust your business plan accordingly. Taking control of your business is essential for success and it is important to be aware of the power dynamics of your industry and to be prepared to adjust your business plan accordingly.
Walker's experience is an inspiring example of what it takes to take control of your business. By understanding the power dynamics of the Amazon reselling industry, Walker was able to create a successful business and a life-changing exit. His story is a great reminder of the importance of understanding the power dynamics of your industry and the importance of being able to recognize potential risks and rewards. Taking control of your business is essential for success and it is important to be aware of the power dynamics of your industry and to be prepared to adjust your business plan accordingly.
Concept 12: Achieve Success Faster
Walker also stresses the importance of having a support system in order to achieve success faster. He talks about the power of peer-to-peer masterminds and accountability partners, which can help keep you on track and ensure that you are taking the necessary steps to reach your goals. Having a strong support system is essential for any successful entrepreneur and it can be the difference between success and failure.
Finally, Walker emphasizes the importance of setting goals and taking action. Without goals, it is difficult to measure success and without taking action, it is impossible to make progress. Setting realistic goals and taking actionable steps are key to achieving success faster.
In conclusion, Walker's story is a great reminder of the importance of understanding the power dynamics of your industry, having a strong support system, and taking action to reach your goals. By taking control of your business, having a support system, and taking action, you can achieve success faster.
---- MORE COOL STUFF ---
Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our newsletter HERE
Want to stay in touch with what's happening in the Main Street M&A Space? Subscribe to The Hub - Acquisitions Hub