How To Get Started As M&A Investor?
By Sebastian Amieva
Hey Legends!
One of the fastest and smartest ways that financial freedom can be achieved is through mergers and acquisitions.
Unlike other investment vehicles, M&A investing enables you to generate Passive Incomes every year WITHOUT you operating the business and just being a silent partner.
Example Of M&A Investing
Total Investment: $200,000
Passive Income: $34,000 Year
ROI: 17%
Investor Dividend: 10%
Acquisition Criteria Example
Asking Price: 1MM - 10MM
Industries: Asset-Heavy Deals e.g Manufacturing, Healthcare, Telecommunications.
Valuation: 3X to 5X EBITDA (Earnings, Before, Interest, Tax, Depreciation, Appreciation).
Location: United States, Canada, Australia, UK.
4 Key Things to Keep in Mind Before Getting Started As M&A Investor
Who has the main responsibility to manage a company?
Entrusted with a leadership role, a manager or CEO (10+ years of experience) is responsible for overseeing a department or group of employees within a specific company.
Who is responsible for the mergers and acquisitions process?
An M&A Advisor for deal hunting, building the data room and designing strategic acquisition plans.
Who is the acquirer?
You could set up an SPV (Special Purpose Vehicle) - for each deal - to legally isolate the risks of the acquisition.
How do investors receive dividends?
Dividend Payout Ratio: The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company, investors get a percentage of the net income every year. The standard practice for the payment of dividends is a check that is mailed to investors.
Hope this helps!
See ya in the inbox!
Sebastian Amieva
Mergers and Acquisitions Expert
If you need help selling or buying businesses Contact Me
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