Buying a Business Without Meeting The Owners

Discover how Nicolas acquired a highly profitable promotional merchandising company in just three weeks without ever meeting the sellers face to face.

Dealmakers Case Study: Nicolas M. Industry: Promotional Merchandise & Printing Deal Strategy: Asset Purchase & Supply Chain Integration
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The Danger of Starting from Scratch

Nicolas and his father ran a company managing specialist print jobs, boasting a £2.2 million turnover. They frequently outsourced their promotional merchandise production. Initially, Nicolas considered starting a new merchandising company from scratch to handle this work internally.

However, he knew from brutal firsthand experience exactly how exhausting it is to build a startup. After discovering the Dealmakers frameworks, he realized he could simply acquire an existing company with established cash flow. When the COVID-19 lockdowns hit and his events based revenue completely dried up, Nicolas knew he needed multiple revenue streams immediately. He stopped relying on organic growth and took aggressive action.

"It is awful hard work starting from scratch. When someone mentioned the podcast, I started listening to it repeatedly. I got quite excited about it, and signed up for the Mastermind programme."

Negotiating an Asset Sale on a Strict Deadline

Nicolas sent out 1,500 direct enquiry letters. One letter landed perfectly on the desk of a husband and wife team who had run a reputable balloon printing business for 38 years. They had recently sold their factory and were preparing to shut the business down entirely within three weeks.

Nicolas aggressively pursued the deal entirely via Zoom. He negotiated a £150,000 asset purchase with just £50,000 down and the remainder structured as deferred consideration. When the sellers' solicitor absolutely refused to provide basic warranties, Nicolas calmly threatened to walk away. Realizing he was not desperate, the sellers panicked, immediately conceded to the warranties, and even extended the deferred payment terms from six to nine months.

21

Days to Close Deal

1,500

Direct Letters Sent

38

Years in Business Acquired

£150k

Asset Purchase Price

£50k

Upfront Deposit

Adding £400,000 to the Bottom Line

The acquisition was a masterstroke of synergy. The acquired company possessed a website ranking number one on Google for personalized balloon printing, generating £38,000 a month in pure organic consumer sales during the lockdown. By absorbing this business, Nicolas immediately gained legitimate add backs of over £100,000.

Furthermore, because he had to secure a new factory space to house the acquired machinery, he was finally able to bring his existing large format print work completely in house. This single strategic move added an estimated £400,000 to his group's bottom line. The corporate client list he inherited included massive brands like Next and Holland and Barrett, unlocking incredible cross selling opportunities for his entire group.

#1 Google Ranking

For personalized balloon printing

£38k/month

Organic consumer sales during lockdown

In-House Manufacturing

Large format print work brought in house

Blue Chip Clients

Next, Holland and Barrett & more

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