Buy Your Competitor

A Message from
Merger and Acquisition Advisor, John Woods CPA:

“I believe the information on this growth strategy will help you in your goal to build a more robust, faster growing and more profitable company. More importantly, I believe you will discover a growth system that will propel you through your entire business life.”

You can grow fast, profitably and with a minimum or risk.
Are you ready for that adventure?

The secrets used by the “Big Boys” are not complicated and they are not complex. Since 1980, I have been working closely with very successful and profitable emerging companies. There are many methods to grow a business very quickly.

However, there is one method that is far and away more successful than most…

My experience with these solid, fast-growing, leading-edge companies has led me to conclude that the best, fastest, most reliable way to build a rock-solid, fast growing, entrepreneurial company is this:

  • Acquire your competitor’s business on a no-cash, or low-cash, out-of-pocket purchase.
  • After the purchase, install a profit improvement system to maximize the business profit potential (a system like the WoodsFormula Profit Optimization System).

My strategy has succeeded with progressive entrepreneurs who followed this basic format:

  • Locate a competitor who is a likely motivated seller
  • Negotiate a deal that allows a monthly positive cash flow sufficient to pay off the monthly debt service on the purchase of the business.
  • Purchase the competitor company and then you make one, small, low-risk profit improvement change each week. This can increase the cash flow by 50% to 300%+ very quickly.

What are the benefits of acquiring your competitor(s)?

The potential benefits of making good, well-timed, strategic purchases of your competitors are:

  • Purchase for little, or no, cash up-front
  • Payments are made only out of new, add-on profits and cash flow
  • Realize immediate cash flow (often you can make more net profit than the current owner did)
  • Purchase at little or no risk to you
  • Immediate improvement in cash inflow
  • Immediate improvement in new earnings and profits
  • Possible Income tax benefits
  • Better and stronger bank relationships
  • Improved relationships with customers and vendors
  • Build an expanded, rock-solid base while your competitor(s) are having tough times.
  • A customer list that is active and may be open to new and bigger profit services
  • Compile a list of ex-customers that you may be able to reactivate with a new management team
  • Acquire inventory and other capital assets at a potentially deep discount
  • In some situations, you may want to sustain additional locations to expand market reach

  What are the “Big Picture” steps that make this process work?

  • Buy a target business that has a positive operating cash flow after you consider your operational changes. The goal is that you will make more than adequate cash to cover all debt payments on the purchase of the target.
  • If the owner of the target company is essential to continue to work for the buyer, their duties should primarily include making sure the former clients of the target company are satisfied customers. Their compensation should be tied to customer retention.
  • Prepare a detailed integration plan of how the combined companies will be operated together.
  • Eliminate duplication of costs and personnel and also any unnecessary costs.
  • Prepare a detailed profitability analysis and develop a plan to increase the critical ratio, decrease non-strategic costs and identify other business and strategic opportunities. A typical and reasonable goal is to double the profit achieved after elimination of duplicate costs. These concepts are detailed in the WoodsFormula Profit Optimization System.
  • Once the combined operations are stabilized and running smoothly, begin looking for the next target to acquire.

Where do you get the money to buy out your competitor?

The resources to finance an acquisition can be acquired from many traditional sources, as well as creative non-traditional sources.  Anyone related to the business who has a financial interest in seeing the business continue is a prospective source of funding for the purchase.

Landlords, suppliers and vendors, business advisors, business brokers and even employees and customers, all have a potential ongoing benefit if the business continues and prospers.

We have identified 27 specific sources to finance a business acquisition.  See  the sections below.

Want answers to these questions?

  • How can I reduce the risk of a significant loss from buying my competitor?
  • How do I know what is the “right price” to pay for a target company?
  • Can you give me several step-by-step, specific examples of how this works and specifically how I can do utilize this?
  • What if I am, or appear to be, the financially weaker player in the acquisition … can I still buy out my competitor?
  • What if I like this idea and I am completely new to this concept and have no idea what the next steps should be?
  • What if I like the idea and really don’t think I can afford to buy my competitors?
  • How do I figure out who might be for sale, especially if they are not listed with a broker?
  • How do I buy the target business without putting up a lot of money?
  • How big an acquisition can I afford to acquire without getting in over my head?
  • Will the acquisition have a lot of hidden problems that might compromise my current business?
  • What is the method for determining the value of the acquisition? 
  • What if the target is losing money – how do I account for this situation in four to twelve weeks?
  • Where do I find someone to manage the acquired business and how do I pay them?
  • What if I want to go really big and do a complete industry roll-up?

Answers are here in our SPECIAL REPORT:

How to Buy Your Competitor Using Its
Cash Flow to Improve Your Business

This will provide you will the best reasoned, more authoritative, factual information available for all of the questions above and also give you detailed information about these topics:

  • Discover proven, time-tested, specific, real life methods that business owners like you are using to dramatically grow sales and profits and to build a rock-solid business.
  • Learn new, cutting-edge growth ideas that can double your sales and triple/quadruple your profits almost OVERNIGHT. This is a very fast growth technology (the “Big Boys” know this method very well).
  • Master multiple ways to buy a competitor with little or no cash up front.
  • Buy out your competitor even if you appear to be financially weaker. See a specific example – you can “expand” your way out of financial distress. This is not a difficult prospect.
  • Discover the 14 benefits of buying your competitor which provide more cash flow, usually starting immediately, if you do know the proper process.
  • Learn 27 ways to finance the buy out of your competitor.
  • Discover 8 ways to reduce the risk of a buy out transaction.
  • Learn the insider secrets of paying the “right price” and not overpaying, which is critical.

This SPECIAL REPORT is available for a limited time.  This is a confidential report and may not be distributed without permission.

To receive your copy of this Confidential Special Report
[CLICK HERE]

 

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