Feb. 22, 2023

The 11 Lessons I learned from interviewing Yury Byalik - Head of Strategy and Acquisitions at Onfolio.com

The 11 Lessons I learned from interviewing Yury Byalik - Head of Strategy and Acquisitions at Onfolio.com

The 11 Lessons I learned from interviewing Yury Byalik - Head of Strategy and Acquisitions at Onfolio.com

Watch E65 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 crude, you're reading our notes, so. yeah. -Ron

Concept 1: Due diligence is key.

Due diligence is an important part of any business acquisition or merger. It is the process of researching and analyzing a potential business transaction to ensure that all the facts are known and that the transaction is in the best interests of the parties involved. Without proper due diligence, a business transaction can be fraught with risk and potential losses.

 

Yuri Bailik, head of strategy and acquisitions for Onfolio, is a perfect example of why due diligence is key. After graduating from law school and being unable to find a job due to the housing market crash, he put his digital marketing background to use and began building websites. He eventually sold one of his websites to LexisNexis, giving him the experience and knowledge to work in the SEO space. This experience gave him the ability to vet potential acquisitions, which led him to his current role at Onfolio.

At Onfolio, Yuri is responsible for researching and analyzing potential acquisitions. He looks for digital products, productized services, and SaaS agencies in order to add to the company's portfolio. With his legal background and experience in the SEO space, Yuri is able to assess the risks and potential rewards of any potential acquisition. This due diligence process is key to making sure that Onfolio is making the best decisions for their business.

Due diligence is a critical step in any business transaction. It is important to have the right person in place to make sure that all the facts are known and that the transaction is in the best interests of the parties involved. Yuri Bailik is a perfect example of why due diligence is key. With his legal background and experience in the SEO space, he is able to assess the risks and potential rewards of any potential acquisition, ensuring that Onfolio is making the best decisions for their business.

 

Concept 2: Acquire digital marketing companies.

Yuri's experience has also led him to a unique approach to identifying acquisition targets. He is on the mailing list of every broker marketplace and spends time going through each one every single day. In addition to that, he also looks for private deal flow and does his own outreach to identify the type of business he wants. This is a great way to ensure that Onfolio is getting the best deals possible.

When looking for digital marketing companies, Yuri looks for ones that are between one to five million in acquisition size. He looks for digital marketing companies, SEO agencies, social media agencies, PPC agencies, and design services with productized services that used to be traditionally done by agencies. He also looks for companies that have a false ceiling in terms of size, as this can help them pitch larger clients and have a bigger exit than they could have on their own.

Onfolio is also looking to benefit from their upcoming NASDAQ listing. This will increase their visibility and deal flow, making it easier for them to find the best digital marketing companies. Yuri's experience and approach to due diligence ensures that Onfolio is making the best decisions for their business. His approach to identifying acquisition targets is a great way to ensure that Onfolio is getting the best deals possible.

Concept 3: Invest in recurring revenue.

Recurring revenue is a great way to invest in businesses, as it provides a steady stream of income with minimal risk. Recurring revenue can come from subscription services, software as a service, WordPress plugins, Shopify apps, and even physical products with subscription-based recurring revenue. By investing in recurring revenue, investors can benefit from steady income and the potential for growth.

Yuri's approach to due diligence is an important factor in Onfolio's success. He looks at the market, the prospectus, the team, the operations, and the finances of the company. He then compiles a list of questions to ensure that the company is a good fit for Onfolio. After that, he negotiates the numbers and goes into the more detailed due diligence.

Recurring revenue is a great way to make money, but it can be expensive. Yuri notes that SAS companies often have higher valuations and require longer payments, so investors need to be sure that they can afford the investment. He also notes that there are opportunities to find subscription or recurring revenue at lower valuations, such as WordPress plugins, Shopify apps, and physical products with subscription-based recurring revenue.

In conclusion, investing in recurring revenue is a great way to make money with minimal risk. Yuri's approach to due diligence ensures that Onfolio is making the best decisions for their business. However, investors need to be aware of the potential costs and be sure that they can afford the investment. By investing in recurring revenue, investors can benefit from steady income and the potential for growth.

 

Concept 4: More competition in online businesses.

With the recent IPO of Onfolio, the concept of buying online businesses and niche content websites has gone mainstream. This has opened up a new world of opportunity for investors who are looking to make a return on their investments. However, with more people entering the market, there is also more competition.

Investors need to be aware of the competition when entering the market and be prepared to adjust their strategies accordingly. They should also consider the additional costs associated with going public and maintaining that status. By understanding the costs and competition, investors can make more informed decisions about their investments.

In addition, investors should be aware of the potential for regulations to change due to the influx of new entrants. This could have an impact on the returns they are able to achieve. It is important to be aware of the potential for regulations to change and to be able to adjust their strategies accordingly.

Overall, the influx of new investors into the online business market has increased competition and the potential for returns. However, investors need to be aware of the additional costs and potential for regulations to change. By understanding these factors, investors can make more informed decisions and maximize their returns.

 

Concept 5: Be aware of regulations.

When investing in online businesses, it is essential to be aware of the potential for new laws and regulations. As we heard in the podcast, some states have already implemented restrictions on certain strategies, such as the need to have a broker's license to wholesale a property. Additionally, the Income Store scandal, where the investor was facing criminal charges, put a damper on the community. This demonstrates the potential for regulations to change quickly, making it important to stay informed.

Furthermore, investors need to be aware of the costs associated with online businesses. As the podcast mentioned, online businesses are not passive investments. Without a full team managing the business, websites can crash and there is nothing to fall back on. In comparison, with real estate, the property can be used to live in if necessary. Additionally, many older technologies, such as Drupal and Joomla, are no longer used, making them potential acquisition targets for investors.

In conclusion, investors need to be aware of the potential for regulations to change and the costs associated with online businesses. By understanding these factors, investors can make more informed decisions and maximize their returns.

 

Concept 6: Hire great employees.

Hiring great employees is essential for any business to succeed. Unfortunately, many smaller businesses, such as marketing agencies, struggle to find the right people for the job. This is because they often rely on traditional methods of recruitment, such as trade shows and in-person referrals. With the onset of the COVID-19 pandemic, these methods are no longer viable.

In order to hire great employees, businesses need to adopt new strategies for recruitment. They should look to leverage online tools such as job boards, social media, and networking sites. They should also consider investing in recruitment software that can help automate the process. Additionally, businesses should look to create a comprehensive onboarding process that will ensure new hires are up to speed on company policies and procedures.

Creating a positive work environment is also essential for attracting and retaining great employees. Businesses should strive to create a culture of collaboration, respect, and inclusivity. They should also provide competitive salaries and benefits, as well as opportunities for professional development.

Hiring great employees is essential for any business to succeed. By leveraging online tools, creating a positive work environment, and investing in recruitment software, businesses can ensure they are able to find and retain the best talent.

Concept 7: Invest in digital courses.

Investing in digital courses is another great way to invest in your business. Digital courses provide a great way to educate and train employees and can help them develop new skills. In addition to providing employees with the knowledge they need to succeed, digital courses can also help businesses save money on training and development costs.

Digital courses are becoming increasingly popular as they provide a way to learn at your own pace and can be accessed from anywhere with an internet connection. By investing in digital courses, businesses can ensure their employees are up to date with the latest industry trends and knowledge. Digital courses can also help businesses save money in the long run as they are typically less expensive than traditional training methods.

Digital courses can be used to teach a variety of topics such as marketing, sales, customer service, and more. Investing in digital courses can provide employees with the skills they need to succeed in their roles and can provide businesses with a competitive edge. Digital courses can also be used to help employees stay up to date with new technology, industry trends, and other important topics.

Investing in digital courses is a great way to ensure your business is able to stay competitive and provide employees with the knowledge they need to succeed. Digital courses can help businesses save money on training and development costs, while also providing employees with the skills they need to succeed in their roles. With the right digital courses, businesses can ensure their employees are up to date with the latest industry trends and knowledge.

Concept 8: Focus on health, wealth, and relationships.

However, when it comes to digital courses, there are three main areas businesses should focus on: health, wealth, and relationships. Health courses can provide employees with the knowledge they need to stay healthy and safe in their workplaces. They can also help employees develop the skills they need to stay physically and mentally healthy. Wealth courses can help employees learn the skills they need to become financially independent and maximize their income potential. Finally, relationship courses can help employees develop the skills needed to build strong relationships with their colleagues, customers, and other stakeholders.

When it comes to health courses, businesses should focus on providing employees with the knowledge they need to stay healthy and safe in their workplaces. This includes providing them with information on nutrition, physical activity, and mental health. Businesses should also ensure that employees are aware of any health and safety regulations and protocols that are in place in the workplace.

Wealth courses can help employees learn the skills they need to become financially independent and maximize their income potential. This includes providing employees with the knowledge they need to make informed financial decisions, such as budgeting, investing, and saving. Businesses should also ensure that employees are aware of any tax regulations and laws that are in place in their country or state.

Finally, relationship courses can help employees develop the skills needed to build strong relationships with their colleagues, customers, and other stakeholders. This includes providing employees with the knowledge they need to effectively communicate with others, resolve conflicts, and build trust. Businesses should also ensure that employees are aware of any cultural and social norms that are in place in the workplace.

In conclusion, businesses should focus on providing employees with the knowledge they need to stay healthy, financially independent, and build strong relationships. By focusing on health, wealth, and relationships, businesses can ensure their employees are up to date with the latest industry trends and knowledge. In turn, this can help businesses stay competitive and provide employees with the skills they need to succeed in their roles.

 

Concept 9: Diversify traffic and revenue.

One way businesses can ensure their employees have the knowledge they need to thrive is by diversifying their traffic and revenue sources. By diversifying their traffic and revenue sources, businesses can reduce their dependence on one source and increase their overall profits. This can help businesses remain competitive in the long run and provide employees with the resources they need to succeed.

For example, businesses should diversify their traffic sources by utilizing multiple marketing channels such as SEO, paid advertising, and social media. By doing this, businesses can ensure their message is reaching the right audiences and that their marketing efforts are generating the desired results. Furthermore, businesses should also diversify their revenue sources by offering digital and physical products. This can help businesses generate more revenue and ensure their profits are not dependent on one source.

Ultimately, businesses should strive to diversify their traffic and revenue sources in order to remain competitive and provide their employees with the resources they need to stay healthy, financially independent, and build strong relationships. By doing this, businesses can ensure their message is reaching the right audiences, their marketing efforts are generating the desired results, and their profits are not dependent on one source.

Concept 10: Set realistic expectations.

However, when it comes to selling a business, it is important to set realistic expectations. This means understanding the value of the business, the market it operates in, and the potential buyers. Many business owners come in with unrealistic expectations, often based on multiples of revenue or EBITDA, that are not applicable to their business. For example, a dropshipping business with 10% margins is not worth as much as a SaaS business with higher margins.

Business owners should also be aware that the market will ultimately set their expectations. If they list their business for sale with an unrealistic price, they may not get any interest. Additionally, some brokers may set unrealistic expectations in order to get a contract, so it is important to be aware of this.

Finally, it is important to understand that if a business owner sets an unrealistic expectation, they may not be the one to sell it. They may be the one to correct the expectation, but they may not be the one to sell it. The market will eventually set the expectation, and the business will be sold for a price close to what it is worth.

In conclusion, it is important for business owners to set realistic expectations when selling a business. This means understanding the value of the business, the market it operates in, and the potential buyers. Additionally, business owners should be aware that the market will ultimately set their expectations, and brokers may set unrealistic expectations in order to get a contract. Finally, if a business owner sets an unrealistic expectation, they may not be the one to sell it. By setting realistic expectations, business owners can ensure they get the best value for their business.

Concept 11: Be transparent and honest.

Transparency and honesty are essential for success in business. This is especially true when it comes to selling a business. Being transparent and honest with potential buyers and brokers can help ensure that a business is valued accurately and that the sale process goes smoothly. Additionally, it is important to be transparent with all financial information in order to ensure that buyers are making an informed decision. Lastly, being transparent and honest can help create trust between buyers and sellers, which is essential for a successful sale.

Transparency and honesty are key when it comes to selling a business. Business owners should be open and honest about their business’s financials, market, and value. They should also be willing to provide potential buyers with all the necessary information in order to make an informed decision. Additionally, business owners should be realistic about the value of their business and the market they operate in. By being open and honest with potential buyers, business owners can ensure they get the best value for their business.

Finally, it is important to create trust between buyers and sellers. Transparency and honesty can help create this trust and make the sale process smoother. Additionally, by being transparent, buyers and sellers can ensure that the sale is fair and that both parties are getting the best value for their investment.

In conclusion, transparency and honesty are essential for success in business. Business owners should be open and honest with potential buyers and brokers in order to ensure that their business is valued accurately and that the sale process goes smoothly. Additionally, it is important to create trust between buyers and sellers, which can be done through transparency and honesty. By being open and honest, business owners can ensure that they get the best value for their business.

 

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