Choosing between acquisitions and start-ups depends on a person’s risk appetite, business goals, and experience. Profitable acquisitions involve buying established businesses that have a track record of generating revenue and cash flow, which can provide a faster and more stable return on investment.
On the other hand, start-ups require developing new products, services, or markets, which may require significant capital investment, a longer time to generate revenue, and a higher risk of failure.
Both options can be profitable, but profitable acquisitions tend to be less risky and offer more predictability.
Michael Byars, the founder of Acquisition CEO, started his first business in the tech industry when he was 19 years old and eventually moved to real estate, building a portfolio of over 170 rental homes and commercial buildings. However, he soon realized that the actual money was not in real estate but in business acquisitions.
Instead of the traditional route of starting a business from scratch, Michael turned to business acquisitions as a less risky way to enter the business world. He began purchasing bolt-on companies around his rental properties, including plumbing, HVAC, property management, and general contracting/construction companies. This allowed him to employ synergies between the companies and generate more revenue.
In 2020, at the beginning of the Covid-19 pandemic, Michael seized the opportunity to purchase an e-commerce company. He implemented automation software that was critical to the massive and rapid growth of the business, taking it from $1.3 million in revenue 18 months prior to purchase to $10 million in revenue within the first six months of ownership.
Today, Michael Byars has amassed $140 million per year in revenue across the 20 companies in his portfolio. He is also the co-founder of a business acquisition specialist firm, where he has used his 20 years of acquisition experience to train and educate over 350 entrepreneurs on better strategies to understand the market and provide them with a comprehensive investment thesis strategy to execute.
For those just starting out in entrepreneurship, the business world can be challenging to navigate with so many risks. Acquisition CEO has launched a mastermind program and course catered to business owners and entrepreneurs. This course is designed to provide a deep understanding of how to grow a business through mergers and acquisitions by leveraging Michael’s 20 years of experience in buying, scaling, and existing companies for the highest value possible.
The Mastermind program is specifically aimed at educating entrepreneurs on the strategic advantages of acquiring an existing business rather than starting from scratch. It also offers valuable guidance on identifying target companies, negotiating deals, and maximizing value for their business.
Michael’s journey as a serial entrepreneur and his success in business acquisitions serve as an inspiration to aspiring entrepreneurs looking for a less risky and more efficient way to enter the business world. His passion for helping others achieve success is admirable, and his willingness to share his knowledge and experience is a valuable resource for those seeking to enter the world of entrepreneurship.
