Join SevenX
& Master All About Funding, Acquisitions, Mergers and Exits

Join 2000 6 &7 Figure Entrepreneurs That Get Inspired Daily How To Build Their Business & Wealth Faster Through Funding & Acquisitions

Join Today For Free & Receive:

  • 17 Secrets To Get Investors To "Yes" Masterclass

  • Forever Free Access To SevenX Community

  • 2 Inspiration Letters per week

  • 🎁 Get Funded Giftbox Valued at $497,-

Read about:

How I Leverage 6 Strategies to Acquire a US$1M Venture for US$150.000

How I Leverage 6 Strategies to Acquire a US$1M Venture for US$150.000

October 17, 20232 min read

How I Leverage 6 Strategies to Acquire a US$1M Venture for US$150.000 & Target 16X Return under 24 Months

Reading Time: Approximately 4 Minutes

How To Acquire A $1M Business For $150K

Hi, how is your week going?

Today I want to talk about the mystery of buying a business for a 85% discount.

My goal is to inspire you to do one day the same.

If you ever need help, you know where to find me :)

Anyway lets jump in.

A bit of back story, I'm in the process to buy a 4 year old business doing $200.000 in profits annually .

This acquisition will be the 1st of 6 others of a roll-up under a holding company that i plan to leverage as a cash flowing asset or maybe even list

But how do you buy a business worth US$1.000.000 for US$150.000?

𝗧𝗵𝗲 𝗧𝗲𝗿𝗺𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗱𝗲𝗮𝗹 𝗱𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝘆𝗼𝘂𝗿 𝗥𝗢𝗜:

Now, how do we buy it for $150.000 while its worth $1.000.000

We are getting creative with financing, assets, negotiations.

• 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗯𝗮𝘀𝗲𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴

The business has recurring revenue. Voila.

We can finance 60% of the $400.000 recurring revenue. That is $240.000.

I agreed on a $150.000 financing with a debt provider.

• 𝗦𝗲𝗹𝗹𝗲𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴:

The immediate cash need for the seller was $300.000

I agreed to finance $250.000 of the acquisition.

• 𝗦𝗮𝗹𝗲𝘀 𝗼𝗳 𝗔𝘀𝘀𝗲𝘁𝘀:

The company own 4 cars worth $130.000.

We sell the “old cars” and take out a lease for just 2 new cars.

Good deal right. $130.000 in the pocket.

• 𝗥𝗼𝗹𝗹𝗲𝗱 𝗢𝘃𝗲𝗿 𝗘𝗾𝘂𝗶𝘁𝘆:

The (old) owner loves our future business plans.

so we roll over 17% equity for future owner benefits.

Rolling over equity can be a great method to get paid twice as seller. One is the immediate cash. Two, the buyer will grow the business, so another cash out is on the horizon.

• 𝗢𝗻𝗯𝗼𝗮𝗿𝗱 𝗡𝗲𝘄 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿

We created a 24 month business plan. Went out to Pitch our growth trajectory

and will sell 10% of equity for $150.000 to a new investor.

Not only the value went up, but also we earn along the way

𝗧𝗵𝗲𝗿𝗲 𝘆𝗼𝘂 𝗴𝗼, 𝘆𝗼𝘂 𝗮𝗰𝗾𝘂𝗶𝗿𝗲𝗱 𝗨𝗦$𝟭𝗠 𝗳𝗼𝗿 𝗨𝗦$𝟭𝟱𝟬.𝟬𝟬𝟬,-

If you have any questions about this post, please click here to visit my linkedin post and ask your question.

Talk to you on Thursday -!-

PS: If you are ready, I’ve some great product to life your business game

blog author image

Sven Milder

I'm in love with developing ideas into thriving ventures. As the founder of SevenX Group, I work daily to simplify founders lives by hosting a FAME Community & steering DeeDee.ai an Ai driven matching making platform for founders and investors. I have supported over 300+ Founders with over $240M+ in Funding and acquisitions and I'm thrilled to help you succeed.

Back to Blog

We Fund. We Acquire. We Exit. We Grow Profitable Internet businesses

SevenX Inspiration Letters

Copyright 2024. All Right Reserved.

SevenX Group Pte Ltd