After spending a decade grinding to build his automotive parts business from scratch, Brendan discovered the ultimate shortcut. Learn how he approached an existing customer, bought their competing business, and doubled his growth overnight without even visiting the premises.
Having experienced exactly how exhausting it is to grow a business from scratch, automotive parts owner Brendan began searching for a better way. Over ten long years, he had utilized pay-per-click advertising to grow his staff from two to fifteen, pushing turnover from £100,000 up to £1 million.
But he was stuck in the day-to-day grind. He realized that acquiring an established business would instantly provide a built-in customer base and existing management structure. He targeted one of his own customers who also acted as a competitor. This customer had built a business over four years but was now buying parts from Brendan to mark up and resell. Brendan knew this owner was frustrated and ready to exit.
"It is very easy to get caught up in the day-to-day. One day turns to two, and before you know it, you are 10 years into it. I thought there had to be an easier way of doing this. This was just a joke. So, we looked into acquisitions."
Brendan's negotiation style was entirely straightforward. He did not believe in wasting time convincing reluctant sellers. He simply asked the owner if they wanted to sell, how much they wanted, and explained how he would structure the payments.
Because the two had an established relationship, there was immediate credibility. The owner quoted a price, and because Brendan knew exactly how much value he could extract by absorbing the company into his existing structure, he agreed immediately without playing hardball. He offered an initial payment on completion, with the remainder structured as deferred consideration over 18 months.
Crucially, Brendan treated the seller fairly so he could retain his services for future referrals and integrate him into the wider group structure.
Once they agreed on Heads of Terms, the process moved rapidly until the solicitors got involved. The seller's solicitor aggressively nitpicked minor details, causing massive frustration for both parties and doubling the legal fees. Eventually, Brendan and the seller bypassed the lawyers to finalise the details themselves.
Incredibly, when Brendan finally received the keys five months later, it was the very first time he had visited the site. He purposely avoided visiting during negotiations. He reasoned that if he could not buy the business remotely, he could not manage it remotely. He did not want to buy himself another exhausting job.
Today, the acquisition is safely ring-fenced within a holding company until the deferred payments are cleared. By successfully removing himself from the daily operations, Brendan has made himself redundant in the best way possible, freeing up his time to hunt for the next major acquisition.
Never visited until the deal was done
How to buy a profitable business without risking your own cash in less than 180 days!
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