How to buy and turn around a
distressed business or 'roll-up' competitors

On this site you’ll read real life stories of how 23 entrepreneurs find, fix and then sell small companies on the edge of failure. Sometimes we buy our weak competitors in a roll-up and get new clients cheaper by acquisition then organic growth. If you like these concepts, come to the next workshop. Learn how we...

✓  Find distressed companies that are worth saving for capital gains
✓  "Roll-up" your competitors for rapid growth with little cash or risk  
✓  Why buying a distressed business is the BEST way to do a start up

From KC Truby Lonesome Cowboy Publishing Inc. 301 Thelma Drive #426, Casper WY 82609 (760) 207-6385

Are other people Buying–Fixing and Selling small companies?

By on May 30, 2014

Are other people Buying–Fixing and Selling small companies?

By: KC Truby

It is our best guess (from scouring the Internet) that less than 5,000 people in the English-speaking world (US, UK, AU, NZ, Canada) even know about the opportunities in small business M&A work. Surprisingly few business brokers even consider this opportunity and they are the first ones to see most good deals.

Our conclusion – almost no one is buying, fixing and reselling small companies. Yet, in America alone, there are two million prospective acquisitions popping up in any given year. The rewards for the aware, to buy low, fix and sell high are astoundingly positive.

Here is why no one does this…

A)     No sales person calls on you. The distressed company looks like a loser to most people and it is fraught with emotional players. I mean, the owners are pissed or mad or crying – you have some emotional problems here. However, they are manageable and if you don’t save the business, a lot of employees are going to lose their job. If no one is selling an opportunity, we never think about it.

B)     It looks like a high-risk deal. Not only are you risking capital, but your time, in a business that has already fallen on hard times. Let us be honest here, it is high risk, but manageable.

C)     We do not know what can be done. That includes getting distressed companies for almost nothing or how do we implement a turnaround in 30 to 90 days that will double the net cash flow.

D)    We are scared to death that the company will suck up all our time and it will, if you do not take steps to make it a self-managed operation before you get in. That is a learnable skill.

I like to consider myself a contrarian when it comes to investing. For example, if everyone and his brother is getting into the stock market (as they are today) I get out. We believe a major correction is coming and we will see a 25% drop at some time in the near future. By the way, the day we have a 25% drop I will jump back in. We made over 100% on our stock portfolio in the months after Sept 11th. We put every dime we could scrape together into stocks after January of 2009. It just keeps happening over and over.

Today the big opportunity is buying other businesses.

The average price of a small business is 2.5 times earnings. That is the lowest multiple in history.   It is the right time to buy. If you double earnings (a two-step process), you will double the value of your acquisition. Roll enough small companies up into a 5 or 10 million dollar business and a larger firm will buy you out at 6 to 10 times earnings. These are serious numbers.

To learn more about this type of investing, to meet the rare person who sees the opportunity, attend our next 2 day seminar. You will learn exactly how we find good deals; calculate what they are worth to us and how we get the deal closed. Just click here to learn more.


About KC Truby

From their ranch in Wyoming, KC and his wife Linnea have bought or started 21 companies as a side line to their accounting business leading them into M&A as a full time business in 2012. These companies are located all over the Western Rocky Mountains, London and India. Since 1969 through their accounting and training companies, KC has taught 18,000 business owners how to improve cash flow and find more customers by installing standardized systems in their small business. Since 1989 KC has presented over 1,000 seminars and training classes to the small business owner.

One Comment

  1. Nick

    June 17, 2014 at 5:07 pm

    Part ‘D’ is my biggest worry. However you say it is learnable, what is the best way to learn?

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