Action Academy | Millionaire Mentorship For Your Life & Business He Bought A $750k Business From A TWEET (Here's What Happened Next....) w/ Chandler Reed
Apr 22, 2025
Chandler Reed, a savvy entrepreneur who bought a $750k commercial contracting business from a tweet, shares his inspiring journey. He dives into the intricacies of acquiring a struggling business and the resilience needed to navigate the challenges. Chandler discusses innovative financing solutions and the critical role of team engagement post-acquisition. He highlights the importance of strategic marketing and leveraging past job experiences to build success. Join him as he reveals valuable lessons for aspiring small business owners!
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Bought a Downscaled Lighting Business
- The acquired lighting business shrank from nearly $10M in revenue to $750K and was nearly a lifestyle business.
- Chandler bought an underperforming "stinker" business as a real-life MBA experience, expecting to hustle hard and learn.
Structure Deals to Limit Risk
- Structure deals with minimal personal guarantee and earn-outs to protect downside risk.
- Use seller financing earn-outs where payments depend on business success to avoid large upfront cash risks.
Avoid Personal Guarantees
- Avoid personal guarantees (PG) on SBA loans by proper asset protection strategies like trusts and homestead exemption.
- You can also strategically reduce equity stakes under 20% and use phantom equity structures to avoid PG and cap table inclusion.