How to buy and sell businesses in the midst of the pandemic with Ace Chapman

Ace Chapman bought his first business when he was just 19. It was an online stock market simulator called CoolWallStreet. After seeing the benefits of buying a business over starting one, he saw the little-known opportunity that existed buying small businesses. He coined the term Micro Private Equity and began building a small Warren Buffett-like portfolio of these acquisitions. Since then he has pioneered the Micro Private Equity Industry, building and growing innovative funds in the space.

“If a seller isn’t interested in giving me a great deal with an earn out and with seller financing, then it’s a good sign to me that they don’t think that I’m the right person to be able to run that business.” – Ace Chapman

Episode Highlights:

  • The effect of the COVID-19 pandemic on the buying and selling industry
  • Business opportunities that you can find right now
  • Advice to people who want to buy a second business (Choosing between the same industry or a different industry)
  • How to find businesses to purchase and how to pitch businesses for sale
  • Do you need a broker in buying and selling businesses
  • How to find great purchasing and sales deals
  • How long will it take to have stability in the business that you acquired
  • Doing your due diligence when buying a business
  • Ace’s personal bucket list and business bucket list

Websites:

AceChapman.com
FIGIRoyalty.com

Connect with Ace:

Twitter
Instagram
Linkedin
Facebook
Google+
Youtube

Transcript: Download

Video Transcription provided by GMR Transcription Services.

 
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Hi I’m Jaime. Each and every week I bring you the top business advice from the people who know best.

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2 responses

  • Well I worked with Ace on a couple of the online deals involved with the fund and the real reason the fund failed was that several of the acquired businesses failed spectacularly.

    A fundamental conundrum of this field (of acquiring businesses) is you don’t know if someone is a good partner until you have actually started working with them on an usually very expensive deal. This can apply to brokers, lawyers, or consultants in this field, since the average person only deals with them once on a major transaction. You don’t know if someone is just good at pitching themselves or actually good at getting a good outcome until you’re in deep.

    In a side-note its kind of crazy to be looking at brick and mortar businesses to acquire right now because typically you look at 3 years performance to come up with the valuation and multiple. With the big shifts with COVID, last 2 years earnings could paint a wildly inaccurate picture, which could result in overpaying for the business. There has been several “experts” in this field that have been moving to facilitating brick and mortar acquisitions, although I think the main driver is banks are more likely to lend on those businesses to less seasoned buyers.

    Just one person’s perspective and experiences, do with it what you will.

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