13 Concepts You and I Can Learn About Buying and Selling Businesses From How2Exit's Interview With Dr. Chris Daigle E16: 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: Start Small For Big Returns
Starting a business can be a daunting task, but it doesn't have to be. Chris Daigle, an expert in small to medium-business acquisitions and mergers, has made a career out of helping businesses scale quickly and make growth easy. His advice is to start small and build up to bigger returns.
Daigle's story began when he was in fifth grade and learned about leverage and arbitrage by buying candy bars in bulk and selling them at a markup from his locker. This was a real aha moment for him, showing him the power of non-traditional ways of making money. Fast forward to today, Daigle is the CEO of a financial publishing company on track to do nine figures this year. A big part of this success is due to the acquisitions, partnerships, and other synergistic deals he has done.
Daigle emphasizes the importance of learning from mentors and compressing their learning curves into a short period of time. He believes that zero to one in business is the hard part, and that starting small is the way to go. This way, entrepreneurs can build up their resources and make sure they have the financial security they need before jumping into bigger deals.
Daigle's advice is invaluable for anyone looking to start a business. By starting small and building up to bigger returns, entrepreneurs can get the experience they need to succeed in the long run. With the right resources and mentors, they can make sure to get the most out of their business and reach their goals.
Concept 2: Find A Mentor, Not A Degree
Finding a mentor, not a degree, is the key to success for entrepreneurs. Degrees can be a great way to get a foundation in business, but they often don’t provide the hands-on experience that entrepreneurs need. A mentor can provide the guidance, advice, and support that entrepreneurs need to succeed.
Mentors can provide invaluable advice and support that can help entrepreneurs reach their goals. They can provide insight into the industry, help entrepreneurs make connections, and provide feedback on business plans. With a mentor’s help, entrepreneurs can get the most out of their businesses and ensure that they are on the right track.
In addition to providing advice, mentors can also provide support. They can provide a listening ear when entrepreneurs are feeling overwhelmed or frustrated. They can also provide encouragement and help entrepreneurs stay motivated. Having a mentor to turn to can help entrepreneurs stay focused and on track.
Finding the right mentor is key. It’s important to find someone who has experience in the industry and can provide valuable insight. It’s also important to find someone who is willing to take the time to get to know the entrepreneur and provide the necessary support.
In the end, finding a mentor, not a degree, is the best way for entrepreneurs to get the most out of their businesses. With the right mentor, entrepreneurs can get the advice and support they need to reach their goals. Mentors can provide invaluable insight and help entrepreneurs stay focused and motivated. With the right mentor, entrepreneurs can make sure that their businesses are successful and reach their goals.
Concept 3: Make Money Quickly with M&A
M&A is a great way for entrepreneurs to make money quickly. It involves buying and selling businesses and can be a great way to make money quickly (Years in stead of decades). It is important to understand the basics of M&A before getting started. It is important to understand the legal aspects, the financial aspects, and the tax implications. It is also important to understand the different types of M&A, such as buyouts, mergers, and acquisitions.
One of the best ways to learn M&A is to find a mentor. A mentor can provide invaluable advice and support and can help entrepreneurs stay focused and motivated. A mentor can also provide guidance on the legal, financial, and tax aspects of M&A. Mentors can also provide advice on the different types of M&A, such as buyouts, mergers, and acquisitions.
In addition to finding a mentor, it is important to do research and understand the basics of M&A. It is important to understand the different types of M&A, such as buyouts, mergers, and acquisitions. It is also important to understand the legal, financial, and tax aspects of M&A. It is also important to understand the different types of deals and how to structure them.
Finally, it is important to have a plan and understand the risks associated with M&A. It is important to understand the different types of risks and how to mitigate them. It is also important to understand the different types of financing available and how to structure them.
Overall, M&A is a great way for entrepreneurs to make money quickly. It is important to understand the basics of M&A and find a mentor to provide guidance and support. It is also important to do research, understand the different types of M&A, and have a plan. With the right mentor and knowledge, entrepreneurs can make money quickly with M&A.
Concept 4: Understand Market Conditions
With the current market conditions, it is essential to understand the different variables that are affecting the market. With the rise of cheap money, it is important to make sure that the deals being made are good ones. Additionally, the rise of SPACs (Special Purpose Acquisition Companies) is another factor to consider. SPACs are a great way to invest in a company without having to put in a lot of money. However, it is important to understand the risks associated with SPACs and make sure that the company is a good fit.
The COVID-19 pandemic has also changed market conditions. With more people shopping online, it is important to understand the different e-commerce options available. Additionally, it is important to understand the unit economics of the business and be prepared for the market to pivot. It is also important to build relationships with owners and have market intelligence on the different opportunities available.
Overall, understanding the market conditions is essential for entrepreneurs looking to make money quickly with M&A. It is important to do research, understand the different types of M&A, and have a plan. Additionally, it is important to understand the different variables that are affecting the market, such as the rise of cheap money and SPACs, as well as the changing landscape of e-commerce due to the pandemic. With the right mentor and knowledge, entrepreneurs can make money quickly with M&A.
Concept 5: Research Before Investing
When it comes to researching M&A, it is important to understand the different types of M&A and how they work. Mergers and acquisitions involve two companies merging together, and the resulting company is usually larger and more profitable. Acquisitions involve one company buying another, and the resulting company is usually smaller and more focused. Additionally, it is important to understand the different variables that are affecting the market, such as the rise of cheap money and SPACs, as well as the changing landscape of e-commerce due to the pandemic.
It is also important to have a mentor or advisor to help guide you through the process. Having someone who is experienced in the field can provide valuable insight and advice. Additionally, attending seminars, webinars, and courses can help entrepreneurs learn more about M&A. By attending these events. Entrepreneurs can gain a better understanding of the industry and the different strategies used to make money quickly with M&A.
Finally, having a plan is essential for success. Entrepreneurs should create a plan that outlines their goals, strategies, and timeline for success. This plan should include research into the different types of M&A, understanding the different variables that are affecting the market, and having a mentor or advisor to guide them through the process. With the right mentor and knowledge, entrepreneurs can make money quickly with M&A.
Concept 6: Start And Keep Learning
However, M&A can be a complex and risky process. To be successful, entrepreneurs must be willing to start and keep learning. This means taking the time to understand the different aspects of the process, such as researching potential deals, understanding the legalities, and building relationships with potential buyers and sellers. It also means being willing to make mistakes and learn from them.
One way to start and keep learning is to connect with other M&A professionals. Joining a local M&A organization or attending industry events can provide valuable insight into the industry and help entrepreneurs build their network. Additionally, working with a mentor or advisor can be beneficial in learning the ropes of the industry.
Another way to start and keep learning is to read industry publications and blogs. This can help entrepreneurs stay up-to-date on the latest trends and best practices. Additionally, attending webinars and seminars can provide entrepreneurs with the opportunity to network with other professionals and gain valuable knowledge.
Finally, entrepreneurs should always be open to learning from their mistakes. It is important to remember that mistakes are part of the learning process and should not be seen as failures. Instead, entrepreneurs should use their mistakes as an opportunity to learn and grow.
The key to success in M&A is to start and keep learning. By taking the time to understand the process, build relationships, and learn from mistakes, entrepreneurs can increase their chances of success. With the right knowledge and guidance, entrepreneurs can make money quickly with M&A.
Concept 7: Create The Right Team
One of the most important elements of M&A is to create the right team. A team of people who have the right skills, experience, and knowledge can help entrepreneurs achieve their goals faster. To do this, entrepreneurs need to understand their own strengths and weaknesses and hire people who can complement them. They also need to ensure that everyone on the team is on the same page and understands their roles and responsibilities.
When building a team, entrepreneurs should look for people who have the right skills and experience for the job. They should also look for people who are motivated and have a positive attitude. It’s important to find people who will work together as a team and be open to feedback and criticism.
In addition to hiring the right people, entrepreneurs should also create a system to ensure that their team is working together effectively. For example, they should create a system of communication, such as regular meetings or emails, to ensure that everyone is on the same page. They should also create a system of accountability to ensure that everyone is working towards the same goals.
Finally, entrepreneurs should create an environment that encourages collaboration and creativity. They should provide their team with the resources they need to do their jobs and should be open to feedback and creative solutions.
By taking the time to create the right team and the right environment, entrepreneurs can increase their chances of success with M&A. With the right team in place, entrepreneurs can focus on building relationships, learning from mistakes, and making money quickly.
Concept 8: Evaluate Deals Objectively
The key to success in M&A is to evaluate deals objectively. It is important to not get caught up in the emotion of the deal and to focus on the numbers. As Keith Cunningham, the inspiration for Robert Kiyosaki's Rich Dad and the Rich Dad Poor Dad series, said, “business is an intellectual game. The more emotion involved, the less intellect, the more intellect, the less emotion, they can’t sit in the same places.”
It is important to remember that the best deals are sometimes the ones you don’t do. If the numbers don’t make sense, it is better to walk away from the deal rather than making an emotional decision. It is also important to remember that businesses should be evaluated based on what they have done, not on what they could do.
In order to make sure that deals are evaluated objectively, entrepreneurs need to have the right team in place. This team should include people with experience in M&A, operations, and marketing. This team can help entrepreneurs stay focused on the numbers and make sure that the deals are evaluated objectively.
Having the right team in place can also help entrepreneurs stay sane during the process. It can be difficult to stay focused when emotions are running high, but having the right team in place can help entrepreneurs stay sane and make sure that the deals are evaluated objectively.
In conclusion, evaluating deals objectively is key to success in M&A. It is important to have the right team in place to help stay focused on the numbers and make sure that the deals are evaluated objectively. By taking the time to create the right team and the right environment, entrepreneurs can increase their chances of success with M&A.
Concept 9: Source Multiple Deals
When it comes to M&A, it is important to source multiple deals in order to maximize the chances of success. Evaluating multiple deals allows for a more objective evaluation of each one, and it can help identify the best deal for the business. It also allows for more flexibility in terms of price and terms, as well as the ability to compare different deals side-by-side.
When sourcing multiple deals, it is important to have the right team in place to help evaluate each one objectively. This team should include people who have experience in the industry as well as those who can look at the numbers objectively. It is also important to have a process in place to evaluate each deal and make sure that the right questions are asked in order to make sure that each deal is evaluated properly.
In addition to having the right team in place, it is important to create an environment that encourages objectivity. This means that the team should have access to all the information they need to make an informed decision, and that they should be able to ask questions and challenge assumptions without fear of repercussions. This type of environment will help ensure that the team is able to evaluate each deal objectively and make the best decision for the business.
Finally, it is important to remember that evaluating multiple deals can be a long and tedious process. It is important to stay focused and to take the time to make sure that each deal is evaluated properly. Taking the time to source multiple deals and evaluate them objectively can help increase the chances of success with M&A.
Concept 10: Team up with experts
One way to increase the chances of success is to team up with experts. By teaming up with experts, it is possible to leverage their knowledge and experience to make better decisions and increase the chances of a successful M&A. This can be done by networking and connecting with people who have expertise in the M&A space. It is important to reach out to people who have experience and can offer valuable advice. Additionally, it is important to ask questions and seek out mentors who can provide guidance and insight.
By working with experts, it is possible to learn the process and find out where deals are sourced. Additionally, it is important to keep a service mindset when working with experts. By providing service to others, it is possible to gain access to deals and opportunities that may not have been available otherwise.
Finally, it is important to remember that procrastination can be a sign that the task at hand is not the right fit for the individual. If there is a task that needs to be completed and the individual is procrastinating, it may be a sign that they need to team up with an expert who is better suited to do the job. By doing this, it is possible to increase the chances of success with M&A.
Concept 11: Leverage Time for Equity
Leveraging time for equity can be a great way to maximize the return on investments and increase the chances of success in M&A. Leveraging time for equity means that instead of investing money, an individual can invest their time and energy in order to gain a stake in a company. This can be done by providing services, such as introductions, advice, and consulting, in exchange for equity.
Dr. Daigle, in the podcast, provides a great example of how to leverage time for equity. He started off by providing services for free, such as introductions and advice, in order to build his network and peer group. As his reputation grew, people began to recognize the value of his services and started to pay him for his time and energy. He was then able to use these introductions as leverage to gain equity in companies.
Leveraging time for equity is a great way to maximize the return on investments and increase the chances of success in M&A. By investing time and energy instead of money, an individual can gain a stake in a company. This can be done by providing services, such as introductions, advice, and consulting, in exchange for equity. Furthermore, it is important to remember that procrastination can be a sign that the task at hand is not the right fit for the individual. If this is the case, it may be necessary to team up with an expert who is better suited to do the job. By doing this, it is possible to increase the chances of success with M&A.
Concept 12: Leverage other's skillsets
One of the most important skills to have when it comes to M&A is the ability to leverage other people’s skillsets. By leveraging the skills of others, an individual can focus on the tasks that they are best suited for and leave the rest to an expert. For example, if an individual is looking to acquire a business, they may need help with the legal aspects of the transaction. By leveraging the skills of an experienced attorney, the individual can increase their chances of success. Furthermore, it is important to remember that the individual should not be afraid to ask for help. By reaching out to experts in the field, it is possible to gain valuable insights and advice.
Another important skill to have when it comes to M&A is the ability to think outside the box. By thinking creatively and coming up with innovative solutions, it is possible to increase the chances of success with M&A. For example, if an individual is looking to acquire a business, they may be able to negotiate a bigger piece of the pie by utilizing their problem-solving skills. Additionally, it is important to remember that the individual should not be afraid to take risks. By taking calculated risks, it is possible to increase the chances of success with M&A.
In conclusion, leveraging other people’s skillsets and thinking outside the box are two important skills to have when it comes to M&A. By utilizing these skills, it is possible to increase the chances of success with M&A. Furthermore, it is important to remember that procrastination can be a sign that the task at hand is not the right fit for the individual. By reaching out to experts in the field and taking calculated risks, it is possible to increase the chances of success with M&A.
Concept 13: Achieve Success Faster
Achieving success faster is something that many entrepreneurs and investors strive for. However, it can be difficult to know how to go about it. One way to achieve success faster is to take advantage of the Investors and Entrepreneurial Professional Mastermind. This mastermind combines the traditional peer-to-peer mastermind introduced by Napoleon Hill in his famous book, Think and Grow Rich, with accountability partnering. This means that peers help each other set goals, take actions, and get results.
The Investors and Entrepreneurial Professional Mastermind provides a platform for entrepreneurs and investors to collaborate and share their knowledge and experiences. This helps to create a community of like-minded individuals who can offer advice and help each other achieve success faster. Additionally, the platform provides a forum for members to discuss their ideas and strategies, as well as provide feedback and support.
In addition to the Investors and Entrepreneurial Professional Mastermind, there are other strategies that can help entrepreneurs and investors achieve success faster. One of these strategies is to leverage other people’s skillsets. This involves taking advantage of the expertise of others in order to gain a better understanding of the market and identify opportunities. Additionally, it is important to think outside the box when it comes to achieving success faster. This involves taking calculated risks and exploring new ideas and strategies that may not have been tried before.
Finally, it is important to remember that procrastination can be a sign that the task at hand is not the right fit for the individual. In these cases, it is important to reach out to experts in the field and get their advice and input. This can help to increase the chances of success with M&A.
Overall, achieving success faster is possible with the right strategies and tools. The Investors and Entrepreneurial Professional Mastermind is a great resource for entrepreneurs and investors to collaborate and share their knowledge and experiences. Additionally, leveraging other people’s skillsets and thinking outside the box are two important skills to have when it comes to M&A. By utilizing these skills, it is possible to increase the chances of success with M&A.
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