getting filthy (rich)

boringbusiness

⚖️ legal mistakes
🧑‍🏫 advisors
🤑 how I think I can get to £10M and beyond
🏦 millions in finance
➡️ next steps

Lots to catch you up on.

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⚖️ legal mistakes

The first big learning curve of this journey. I needed to find someone to create a heads of terms document. This outlines in principle what everyone is happy with. It's the handshake 🤝 document that says okay if everything you've said turns out to be true I'd like to buy this business as agreed.

Now when we initially got the heads of terms over the broker had missed off two of the company shareholders. This raised some red flags for my legal team. Who then took a lot more time looking into the shareholders. If we had signed heads of terms without these other owners being listed it could have wreaked havoc later on. On top of that it meant those other shareholders would not have been bound by the heads of terms.

Could have been a big issue but luckily my legal team caught it. That's why we pay them.

🧑‍🏫 advisors

Having great advisors has been invaluable. I paid a gentleman with 15 years of investment banking experience to review heads of terms and other documents as well. He pointed out some due diligence questions to ask that hadn't crossed my mind.

Being that I am new to this I am leaning on the help of experts heavily.

On top of that my close friend Giles and all-around badass MD (took his current biz from £250k to £6M per year 📈) has also been on hand to provide great advice.

🤑 how I think I can get to £10M and beyond

The more I have explored this niche the more I have found a range of businesses at a similar turnover level. I think the play long-term here is to roll up a number of businesses in this industry.

Create a much bigger company in this space overall.

🏦 millions in finance

What I thought would be the biggest hurdle has in fact been relatively straightforward. As this business is unencumbered, with assets and a healthy balance sheet funders have been happy to provide the debt needed for the purchase.

There will be an element of seller financing but I always think this is sensible. It ensures that they are invested in the business transition being smooth.

Due diligence is progressing on this currently but all is looking promising on this front.

➡️ next steps

- final due diligence on the finance
- legal due diligence is now well underway
- further due diligence on the business and a few other items

More to come on how we negotiate the SPA, what we find in due diligence and will the funding all be secured on time?

Only time will tell...