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WS149: Mastering the ART of Deal Analysis and Business Acquisition with Ace Chapman

mastering the art of deal analysis and business acquisition

Summary:

Ace Chapman, Freedom Internet Group reveals some excellent insights which will help syndicators evaluate deals, raise capital and mitigate risk.

This show starts off with Ace recalling how he acquired his first business, nearly 17 years back. Were Ace’s family and friends supportive of his entrepreneurial venture? Ace also shares his framework for evaluating and investing in a deal. What are some common mistakes that entrepreneurs make while raising money from investors? And, how do you find a deal that an investor is willing to invest in?

Next, we discuss the nuances of a business acquisition. You will learn the ART of structuring a seller-financed deal. Ace reveals how introducing earn-outs provisions will reduce risk and greatly increase your chance of success. Tune in for some excellent insights!

Our Gracious Sponsor:

See The Real Estate CPA’s Special Virtual Workshop for the listeners of The Real Estate Syndication Show on How to Answer Tax Related Questions from Your Investors! http://bit.ly/TheRealEstateCPA-Syndication

Time Stamped Show Notes:

  • 00:29 – Whitney introduces Ace to listeners
  • 01:40 – How did Ace end up acquiring his first business 17 years back?
  • 04:13 – Real estate investing vs. Acquisition – what is the difference?
  • 05:50 – Did Ace’s family and friends support his decision to leave school?
  • 09:52 – How did Ace raise money from investors?
  • 12:26 – Common mistakes that entrepreneurs make while raising money
  • 12:58 – How to find a deal that matches an investor’s criteria
  • 14:45 – Ace shares his criteria for evaluating and investing in a deal
  • 16:00 – How does Ace mitigate risk while investing in a new deal?
  • 17:34 – Ace explains how he structures a win-win relationship by ensuring that the seller has a vested interest even after selling the business
  • 20:00 – Get your tax queries answered by the Real Estate CPA
  • 21:50 – Finding motivated sellers is key to getting sellers to agree to an earn-out provision
  • 23:20 – How a solid track record can convince the seller of your ability to run a business
  • 24:32 – What does Ace do when a seller does not agree to a seller financing even after seeing his track record?
  • 25:57 – How to build a professional buyer persona and assuage seller concerns
  • 27:20 – How does Ace vet a seller and ensure that they are a good fit?
  • 29:27 – Should a seller be upfront about potential business downsides?
  • 32:35 – What are some ways through which Ace is improving his business?
  • 33:40 – What is the ONE thing that has contributed to success Ace’s success?
  • 34:23 – Ace reveals some details about this forthcoming IPO
  • 34:58 – Ace shares that he is always looking out for great deals
  • 35:24 – How is Ace giving back to society?
  • 36:44 – Ace shares his contact information
  • 37:21 – Schedule a call with Whitney now!
  • 37:23 – Join our Facebook Group to connect with like-minded individuals and real estate experts
  • [spp-timestamp time=”37:33″] – A Special Thanks to our sponsor, LifeBridge Capital

In this episode, you will learn

  1. How to find a deal that matches an investor’s criteria
  2. How to find motivated sellers who are agreeable to earn-out provisions and seller financing
  3. The ART of structuring a seller-financed deal

Resources

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