Ben Kelly on LinkedIn: 7 years ago I was living the “American Dream.” • 6-figure salary •… | 70 comments (2024)

Ever wonder what it takes to buy a CPA Firm?If so, you're in luck (here's how I acquired mine):CPA Firms make for great acquisitions.They're recession-resistant.They have recurring revenue.They provide essential services.It just doesn't get much better than that.Every business I buy, I look for those 3 conditions.That way, I know I'll never have to worry about anything (no matter the market conditions).If you want to learn how to buy your own "boring" business like this...Follow me → Ben Kelly

116

32 Comments

This should be on everyone’s bucket list:→ Owning a boring business.Why?Because the cash flow can easily set your family up for financial freedom.Sadly, most people die without ever doing it.6 steps to cross it off this year:--Step 1: Market Research.Go to "bizbuysell(dot)com."You'll find 1,000s of listings and start to notice some patterns.They'll mention:Cashflow (profit after expenses).SDE (Seller Discretionary Income).FF&E (Furniture, Fixtures, and Equipment).Revenue (money coming into the business).EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization).A few important terms to know.Mess around with the filters to match your:• Location• Price range• Ideal cashflowGet comfortable looking at the listings to see what you might like.--Step 2: Engage With Lenders.You need to ask yourself:"How will I fund this acquisition?"Will I use:• My own money?• An investor?• A bank?There are many ways to get the deal done.4 things to think about when speaking to lenders:1. Know that they're sizing you up from the first call.2. Come to the call knowing what type of business you want AND why.3. Bring your last 3 years of tax returns and your W2 paystubs.4. Prepare Personal Financial Statements (list assets and liabilities).--Step 3: Start Making Calls.It's important not to get discouraged at this point in the process.You will need to take:• Phone calls• Meetings• ZoomsAnd things still may not work out.Make sure you take a ton of notes and continue until you find a business worth buying.Once you have:• The reason they're selling• 3 years of tax returns• P&L statementsIt's time to consult a professional.Even though it might look perfect, an accounting professional needs to dive deeply into the numbers.--Step 4: Make Your Offer.To make solid offer, do the following:Take the average SDE (owner's total profit) from the last 3 years and multiply it by 2-4x.Round down your answer.--Step 5: Structure The Purchase.What's better than buying a business with none of our own money?(Nothing, I've done it 5 times).For the sake of this example, let's use Bob's money.Here's how it'll break down:Bob wants to invest in a business and he loves your deal.You tell Bob that if he provides the 10% downpayment, he'll get 15% equity in the business.It's a win-win-win-win.Here's how:Win #1: Bob gets an amazing return.Win #2: The business can still grow.Win #3: You delegate daily tasks.Win #4: You can keep the rest.Then you repeat.--Step 6: Due Diligence.This is by far the most critical part of the business buying process.Do this:• Hire an accountant• Talk to the employees• Find a like-minded owner• Check out their social mediaDo everything you can in case you see something that looks fishy.Congrats!You just bought your first business!If you want to learn more...Follow me → Ben Kelly

60

31 Comments

It took me years to build my business portfolio.But if I had to start from scratch? This is what I'd do:Now is the perfect time to start building a business portfolio.The Silver Tsunami is causing what some people call "The World's Largest Wealth Transfer."If you follow the steps I lay out in this post, you'll be more than ready to start combing through the market and finding the right business for you!If you want to learn more about the ins and outs of business acquisition...Follow me → Ben Kelly

77

26 Comments

The market is a bubble (and it’s about to pop).A great way to protect yourself is buying a boring business (here's my top 65):1. Laundromat2. Accounting Firms3. Title Company4. Notary Service5. CFO Services6. Property Management7. Property Maintenance8. Tree Trimming9. Pool Maintenance10. HVAC11. Plumbing12. Electrical Services13. Pest Control14. SaaS15. ATM Routes16. Vending Machines17. Senior Home Care18. Car Washes19. Manufacturing20. Window Cleaning21. Pressure Washing22. Vehicle Dent Removal23. Assisted Living24. Trucking25. Residential Painting26. Landscaping27. Hair Salon28. Nail Salon29. Barber Shop30. Automotive Maintenance31. Med Spas32. FedEx Routes33. Dumpster Rental34. Home Cleaning35. Pet Grooming36. Roofing37. Moving Service38. Towing & Recovery39. Wealth Management40. Insurance41. Junk Removal42. Oil Change Center43. Remediation Service44. Tent Rental45. Parking lots46. Storage Facilities47. Fence Installation48. Surveying49. Carpet Cleaning50. Car Detailing51. Holiday Services52. Epoxy Flooring53. Supercar Rental54. Event Management55. Scaffolding56. Irrigation System Installation57. Sport Equipment Rental58. RV Parks59. Web Design Company60. Catering Service61. Pack & Ship Center62. Commercial Cleaning63. Photography64. Pallet Construction65. Gutter Cleaning

139

55 Comments

I'm 34.I own 6 businesses (last year, they generated $7,057,991).But I’ve only paid $65,000 of my own money to acquire them.Here’s how I get approved for SBA loans so I can buy businesses for little to $0 down:First…An SBA (Small Business Administration) loan allows small businesses to raise capital.They’re backed by the US government.This means it’s a lot less risky for banks, so they can help out more small businesses.--1) Find a LenderSome banks you can speak to:1. Huntington Bank2. Customers Bank3. Live Oak Bank4. Byline Bank5. FundexEach bank will give you different terms and conditions so I would speak to several.--2) Bring These DocumentsYou’ll need personal & business documents.• Personal tax returns• Business tax returns• YTD P&L statement• Debt statement• Personal financial statementYou can use an account to help with this.--3) Set Your ExpectationsThe bank is deciding if you’re a “safe bet.”Most will expect you to personally guarantee the loan, and they may also want you to offer an asset as collateral.You must understand…This isn’t a 0 risk play.--4) Show Off Your ExperienceWhen dealing with the bank, bring your resume and explain why you’re buying.You don’t need to be an expert investor.Just explain your current job and why you think you’re suitable for this acquisition.--5) Create a “Mini” Business PlanYou don’t need to sit in front of a banker with a 57-slide, in-depth PowerPoint.But you will need a short business plan.Just keep it concise, and don’t overthink.--6) Provide ProjectionsI hire a CPA for this to show how the revenue of the business is predicted to grow.Here’s a little trick…If you offer the accountant 5-10% equity, they can help you with all the financials.It pays to be creative.Once you have an SBA loan?You’ll need a 10% deposit.You can either pay this yourself or use a private investor who will do it for equity.This is how I bought my Nail Salon for $0 of my own money that now pays me $5k per month after all expenses.Obtaining an SBA loan is not too difficult once you understand the process.However, it’s not the only way to get funding.You have:• Investor financing• Seller Financing• SBL loansIf you’d like to learn more about business acquisition as a normal, everyday investor…Follow me → Ben Kelly

365

65 Comments

POV: Your “boring” business portfolio pays for you and your family to travel the world.

52

18 Comments

Ever wonder what it's like to scale 6 businesses at once?Well, you're about to find out:I like to pull 5 main levers:1. General Managers2. EOS Implementation3. Software Integrations4. Strategic Partnerships5. Bolt-On AcquisitionsWhenever I'm looking at a business to acquire, I run what I like to call my "Fax Machine Test."If the business is still using a fax machine (or other outdated processes)?I know there's a lot to improve.That's a good thingbecause I can buy it at a "discount," knowing I can instantly increase the value once I buy it.A nice little tip to know if you're ever in the market.Want to learn more about the ins and outs of business acquisition?Follow me → Ben Kelly

82

40 Comments

Want to build generational wealth?Buy one of these 10 lame (but lucrative) businesses:1. Dumpster Rental2. Moving Company3. Paint Striping4. HVAC5. Heavy Equipment Rental6. Driveway Sealing7. Solar Panel Installation8. Pallet Construction9. Deck Construction10. Nail SalonsI actually own a Nail Salon myself.Here are some quick numbers:💰 Revenue: $1,124,889💸 Cash Flow: $30,000⏰ Weekly Effort: NoneIf you want to learn more about business acquisition...Follow me → Ben Kelly

123

51 Comments

This book changed my life.It helped me:• Escape the 9-5• Buy boring businesses• Have more time for my familyHere are my 10 favorite takeaways:--1) Leverage the existing assets.The business you acquire should already have some infrastructure to it.You can leverage the:• Existing customer base• Brand reputation• EmployeesThis is vital for growth and longevity.--2) Think like an entrepreneur.By building a portfolio of businesses, you could be considered an "investor."But you need to think like an entrepreneur.After you buy the business:You need to keep it afloat.You need to see opportunities.You need to make improvements.--3) Focus on the cash flow.Cash flow is a critical indicator of the financial health of a company.The more the merrier.If you can dial in the systems and delegate, you can earn cash flow on autopilot.I am now a big fan of delegation.--4) Always do your due diligence.The less research you do for an acquisition, the more stressful it will be.If you don't uncover hidden:• Bottlenecks• Liabilities• IssuesYou're sabotaging yourself.Trust me, the upfront hassle is worth it.--5) Take advantage of strategic financing.There are many ways to buy a business.• Seller financing• Traditional loans• Using an investorThe more creative you can be (within the limits of the law), the better.Creative financing is a skill (learn it).--6) Maintain a long-term perspective.Although you can build wealth quite quickly, you should still think long-term.This strategy is very powerful.And if you're in it for the long haul, you can build legitimate generational wealth.Take the high ground and go for it.--7) Strengthen the staff.If you don't want to be tied to your acquisition, hire amazing employees.Delegation is vital.If the business is "owner-operated," just know what you're about to walk into.That's part of the due diligence.--8) Develop elite negotiation skills.Closing deals is a skill.The better deal you get from day 1, the more money you'll make overall.You want the best deal possible, right?So study negotiation.--9) Startups are too risky.To go and start your own business, you're looking at a <10% success rate.But buying a business that's up and running?With existing cash flow.With proof of concept.With an existing staff.That seems a lot safer (it is).--10) Develop an exit strategy.While you do want to keep a long-term perspective, you also want an exit plan.You can shut it down totally.You can sell the businesses.You can pass them down.I recommend the latter two options.But everyone's different.--This book truly did change my life.After 2 years in private banking, I just couldn't keep living that lifestyle.And now?My portfolio does ~$5M/year in annual revenue.If you want to learn how to do the same...Follow me → Ben Kelly

275

64 Comments