First Acquisition

searcher profile

August 20, 2022

by a searcher in Tampa, FL, USA

I own 20 long term rental units and will be purchasing my first business in###-###-#### What would be the best industry to start looking for a businesses to acquire? I was initially thinking about something home service related such as a contracting company or residential cleaning company to be more vertically integrated. Is there anything I'm missing?

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commentor profile
Reply by a professional
in Lucknow, Uttar Pradesh, India
Here is how we do it:

List down all the monthly costs your business has. Sort it by highest to lowest.

Answer these three question: 1. Can you get to owner of this company? 2. Is this meaningful/interesting enough to potentially acquire? 3. Do you have the knowledge about this business or can you hire an operator to run this business for you? 4. What’s your unfair advantage?

I will give you an example from the eCom space. (That's the business I was in when I got into acquisition)

We were using a lot of tools that we were paying monthly for.

Shopify, Product Research Tool, Order Tracking apps, Photo/Video editing tool, Landing page designer app and many others.

1. Now I can't get to Tobi Lutke (Shopify Founder) and don't have the resources to acquire it either so I went after the order tracking app.

2. I had already got a few changes done in the app based on my requirement so this was a big yes for me.

3. Yes.

4. I owned an audience of dropshippers that I could easily market this app too.

Hope this helps and let me know if something isn't clear.
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
"best industry to start looking for a businesses to acquire?" is not the best question. Knowing what to do about it is. Learn this, first:


https://cutt.ly/vvV5PHs



And then, let's Zoom to further focus you.
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