Rolandas B. Bought A Coffee Business No Money Down!
Mergers And Acquisitions Newsletter™
Hey Legends!
Please listen to this great story in his own words!
¨From the very start.
Quit my job and quit my part-time business.
A couple of days later I got a few phone calls from other companies asking me to join them and offering me a job. I refused job offers.
If people call me, it means I do something right.
It was one small company that I knew little about and I decided to call them back and to offer to meet.
I did a little research and I saw that I can improve a few things straight away by walking in.
Meeting Number 1
My target was to get a partnership instead of a job.
I went and met them. I asked them for 1/3 of the company. (You had to see their faces) it was quiet for a while but I kept talking about myself and what I can bring in.
The meeting is over.
I gave them 3-4 days and then contacted them again to ask how they feel about my offer and asked for another meeting to discuss this in detail. As if there are any questions I can answer.
Meeting Number 2
They agreed to give me 1/3 of a company but I had to pay 65k for it. Well, first I thought that this number was way too high but instead I said nothing. I said that they did a great job on creating such a great brand and it's worth the money they ask as I can see this company growing in a short time.
(Because I have no money to offer. I kept talking about what I could bring in and what great job they did).
The outcome of this meeting was.
The business they have could be split into three parts. They have a coffee business(beans, equipment and customer base) they have a food truck business (covering construction sites) and they had event business (coffee trucks for rental/events)
I told them that you can keep the food truck and event business separate, but I want 1/3 of the coffee business. (Food trucks and events have great income as well, especially in construction sites). I just wanted to get them comfortable with 1/3 of the company idea and that they won't get 65k for it.
(That they will get no money was another surprise they weren't expecting).
The meeting is over.
Gave them more than a week to think about it. Then we had a couple of phone calls to clear a few points.
Meeting Number 3
After two meetings and a few phone calls, they agreed to give me 1/3 of a company (coffee company) for no money down. We met and agreed on terms.
Later I requested to put in terms that if I find new customers/contracts for a food truck and even businesses that they will have to add me into that business as well and give me 1/3 of it. (Well that was another surprise, but if I won't ask I won't get it). They said that they will think about it and will come back to me later.
The meeting is over.
Making it legal.
Because everything was so complicated and legal costs would be so high. Instead of splitting the company into three parts and every part into other parts, we went in a different direction.
We opened a new partnership, we transferred all coffee clients to a new partnership. Leaving the old company with a food truck and events business. (Later I find out that in terms they put if they bring new contracts to even a food truck business they will simply transfer all into the new company).
So this is how I got 1/3 of the company with 0 money in.
(Well the company is small and does around $500,000 a year, but I see a lot of potential and I got it for nothing.) It means approximately $150,000 net per year for myself.
I plan to get as many new customers as I can so I could replace myself with someone else like me and get more deals done¨.
Rolandas B.
I think this a great story and I will be posting more in the next months! Hope you enjoyed!
Sebastian Amieva
Mergers And Acquisitions Newsletter™
P.S. My mission in 2022 is to help 50 individuals build wealth by buying established businesses without using their own 💰! Read More HERE