There are hard ways of starting companies and there are easier ways.
If you are only after the money in startups, then come up with a brand and a brand promise. Then form a company structure, open an international bank account, find yourself an accountant and a business lawyer. Then you find yourself a corporate financier.
When you have this in place, then you go out and find the biggest and most well run company you can find. Then you show this piece to your team (accountant, lawyer and especially your corporate financier, your "money man"). You tell the corporate financier that you want to purchase this company through a 100% financed LBO deal (none of your money involved that is). You tell your corporate financier to sell a company bond with as low a fixed interest rate you can get. Then you use the funds to purchase the well run company.
Your next step is to get that debt down to a healthy state (below 50% against assets in my world).
When you have maximized profit levels and when you have secured the balance sheet, you then go back to your corporate financier and tell him/her: "I want you to find me a buyer for all of my shares.
You cash out (probably with a couple of tens of millions of dollars).
Your investment? What it cost to form the company structure. The rest was free of charge.
Believe me, this works. I just reiterate what other mavericks is already doing. LBO deals is nothing new. But it sure is worth a second thought and it sure gets me excited and I am about to test it with my finance company
. I am looking for something to buy in fact so if any of you have a financial company with revenues of at least $10 Million, then send me a PM. It need to be profitable. And there need to be a CEO following with it.
Just wanted you to consider the interesting opportunities out there.
What about the brand and the brand promise? Yes, almost forgot. When you have bought the company you immediately go into branding mode so that your company stands for something you believe in. If you then have a product you want to bring to market, then great. Now, when you have purchased a well-run company, you can use the already existing plattform to market it. Making it so much easier to succeed. And faster as well.
Sometimes it is best to go BIG from the start. Why not do it with a big, fat loan and a cash cow? Why make it hard?
Can't manage it? Well, find a manager then. They are plenty. If you buy a company of a great size they usually follow with the price anyway. No worry.
If you are only after the money in startups, then come up with a brand and a brand promise. Then form a company structure, open an international bank account, find yourself an accountant and a business lawyer. Then you find yourself a corporate financier.
When you have this in place, then you go out and find the biggest and most well run company you can find. Then you show this piece to your team (accountant, lawyer and especially your corporate financier, your "money man"). You tell the corporate financier that you want to purchase this company through a 100% financed LBO deal (none of your money involved that is). You tell your corporate financier to sell a company bond with as low a fixed interest rate you can get. Then you use the funds to purchase the well run company.
Your next step is to get that debt down to a healthy state (below 50% against assets in my world).
When you have maximized profit levels and when you have secured the balance sheet, you then go back to your corporate financier and tell him/her: "I want you to find me a buyer for all of my shares.
You cash out (probably with a couple of tens of millions of dollars).
Your investment? What it cost to form the company structure. The rest was free of charge.
Believe me, this works. I just reiterate what other mavericks is already doing. LBO deals is nothing new. But it sure is worth a second thought and it sure gets me excited and I am about to test it with my finance company
. I am looking for something to buy in fact so if any of you have a financial company with revenues of at least $10 Million, then send me a PM. It need to be profitable. And there need to be a CEO following with it.Just wanted you to consider the interesting opportunities out there.
What about the brand and the brand promise? Yes, almost forgot. When you have bought the company you immediately go into branding mode so that your company stands for something you believe in. If you then have a product you want to bring to market, then great. Now, when you have purchased a well-run company, you can use the already existing plattform to market it. Making it so much easier to succeed. And faster as well.
Sometimes it is best to go BIG from the start. Why not do it with a big, fat loan and a cash cow? Why make it hard?
Can't manage it? Well, find a manager then. They are plenty. If you buy a company of a great size they usually follow with the price anyway. No worry.
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