Acquiring Minds Getting Unstuck by Buying a Business
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Apr 11, 2024 Christian Bateson, entrepreneur who turned a construction services business into a $7.5m venture, discusses the 2008 financial crisis, qualities of top salespeople, choosing business acquisition, difficulties in hiring for construction, post-Covid growth, ignoring red flags in acquisitions, and the benefits of a finance background.
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Stock Purchase vs. Asset Purchase
- Christian initially pursued an asset purchase but switched to a stock purchase to retain existing contracts.
- He closed the deal six months after signing the LOI.
Compounding Effects Over Time
- Overestimate the change you can achieve in one year and underestimate what's possible in five.
- The compounding effects of consistent effort over time are powerful.
Shopping for SBA Loans
- Shop around for SBA loans and don't accept unfavorable terms; there are many lenders available.
- Christian secured a 10-year SBA loan at prime plus 2.5% with a significant equity injection.