Buy A Business Without Cash / Buying a Business / Jonathan Jay / 2023

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Your free training on how to buy a business without cash is here: bit.ly/4ajGRQH
Are you looking for ways of buying a business without using your own capital?
In this video, Jonathan Jay shares six different methods to buy a business without spending any of your own money. Business mergers and acquisitions typically require capital, whether it's borrowed from a bank or borrowed from friends and family.
But what if you could buy an existing business that is already up and running without using your own capital?
Jonathan Jay discusses five different business acquisition strategies for buying a business without using any of your own money.
The first method is to find a distressed business, which is under financial pressure and may have debts. By doing a one-pound deal to buy the business, you can take on the liabilities of the company.
You can solve the problems that the previous owner had with fresh eyes and enthusiasm.
The second method is to use someone else's money. There are plenty of people who want to be part of a business acquisition but don't want to take responsibility for the business. You can give them a chance to be a shareholder in the company and buy twenty or twenty-five per cent of the shares for a lump sum. You can use that lump sum to help finance the deal.
The third method is to agree on a deal structure with the seller of the business. You can defer 100% of the acquisition payment for the company and spread it over the next five years, for example. This means you pay the seller of the business a certain amount each year until you've paid off the agreed amount.
The fourth method is to use vendor financing. You can ask the owner of the business to finance part of the deal, which means they lend you the money to buy the business, and you pay them back over time. This is a great way to buy a business without using your own money.
The fifth method is to use a lease purchase agreement. You can lease the business for a period of time and have the option to purchase it at the end of the lease. This is a great way to test the business before you commit to buying it.
The sixth method for purchasing a business is to use a combination of these methods. You can use vendor financing, deferred payments, and other methods to finance the purchase of the business.
If you're interested in buying a business without using your own capital, then this video is for you. Jonathan Jay shares six different methods that you can use to buy a business without spending any of your own money. Check out the video now to learn more!

Пікірлер: 112

  • @theDealmakers
    @theDealmakers Жыл бұрын

    If you enjoyed this video and would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at bit.ly/4ajGRQH Thank you!

  • @glife8478
    @glife84782 жыл бұрын

    I made lots of money buying companies with problems I knew how to solve the problems then resold them as good companies with no problems .

  • @tonyencalade4502
    @tonyencalade45027 ай бұрын

    Number five and six just might help me buy that motorcycle shop. I’ve been dreaming of thank you for this video.

  • @syedahmed6620
    @syedahmed6620 Жыл бұрын

    Very good informative vedio sir thanks again 👍 Sir

  • @justindavidkaria6597
    @justindavidkaria65972 жыл бұрын

    Hey @Jonathan need some advice on a business (gym) which is on sale but I don't have enough funds to acquire it. Which would be the most advisable choice to take?

  • @absocial6649
    @absocial66492 жыл бұрын

    Good evening Jonathan Could you do a video explaining how to source a good deal making team

  • @dickieblench5001
    @dickieblench50012 жыл бұрын

    This is gold thanks 💝

  • @theDealmakers

    @theDealmakers

    2 жыл бұрын

    Glad you like it!

  • @karannanda1192
    @karannanda11922 жыл бұрын

    Hey . Really informative video . Please guide me with this situation . I own a steel manufacturingbusiness . And want to buy a steel plant in order to expand my business . I wish to buy the plant through lease cum buy option for which I am willing to pay 1.5 times the price of the business but with no money down . How do I find business owners who would want to sell their business at the said premium ? Thanks a lot .

  • @LichtUp
    @LichtUp3 жыл бұрын

    Hello Jonathan, very interesting topic! Any way to exchange with you about an opportunity I am working on? I need someone like for to pull of a complicated deal.

  • @danielvovk
    @danielvovk Жыл бұрын

    Some aspects can be used

  • @hillaryschandorf3944
    @hillaryschandorf39442 жыл бұрын

    Cool content

  • @CHILLxMUSICUS
    @CHILLxMUSICUS2 жыл бұрын

    Please make a video on how to find best business to buy and how to find that that business in good or not good to buy

  • @rabilahaiwas5901
    @rabilahaiwas5901 Жыл бұрын

    Excellent!

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    Glad you liked it!

  • @emmyjunior03
    @emmyjunior032 жыл бұрын

    Hey @Jonathan let's start a company already 😁

  • @KC-xm6ri
    @KC-xm6ri4 жыл бұрын

    How do you establish trust with an owner when structuring an earn out? In other words, how do you ensure them that they will receive their performance-based payments as agreed without them having any visibility into the business's P&L's, etc.?

  • @theDealmakers

    @theDealmakers

    4 жыл бұрын

    You're right - it's very important - partly down to your personal credibility and partly the legal protections you provide

  • @KC-xm6ri

    @KC-xm6ri

    4 жыл бұрын

    @@theDealmakers Thank you! Enjoying your content.

  • @fidel2xl

    @fidel2xl

    2 жыл бұрын

    @K C --- Typically, as long as the 'Seller' has guarantees stipulated in the Purchase & Sale Agreement that they (the Seller along with the Seller's attorneys or accountants etc) are entitled to review the financials statements by a certain date each year during the earn-out period, the Sellers are usually satisfied with that arrangement. These fears are usually appeased via various clauses that can easily be included in the contracts between the buyer and the seller.

  • @cathyperry6729

    @cathyperry6729

    2 ай бұрын

    It's a contract/liability for the business just like any other long term note. It's just a private note that is held by the seller instead of a bank.

  • @robsweatherchannel
    @robsweatherchannel Жыл бұрын

    Do you purchase or refinance for assets based finance? Ss I do not own the business or property but aiming to purchase both to the sell lands of which then pays off the loan essentially.

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    It's a refinance

  • @Sam-bs6nm
    @Sam-bs6nm4 жыл бұрын

    That is was I looking for, could it be also combined between an LBO and a seller financing? And what if the buyer has some personal debt not related to any business? There's any kind of way structure where the bank doesn`t need any of the histories of the buyer?

  • @SuccessTrackUK

    @SuccessTrackUK

    4 жыл бұрын

    Sam is here : yes, absolutely. Personal debt is largely irrelevant unless the company has a charge over it as a result. Unsure what you mean in the final sentence

  • @Sam-bs6nm

    @Sam-bs6nm

    4 жыл бұрын

    @@SuccessTrackUK Thanks for the advice!

  • @iwanwilliams7864
    @iwanwilliams78643 жыл бұрын

    I like the 5th and 6th method, especially the 6th one. Can you go into more depth please?

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    I might well do that on another video

  • @billionaireacquisitionmast459

    @billionaireacquisitionmast459

    3 жыл бұрын

    Like I tell people we are not evaluating businesses we are making offers, with that said; your offer is based on the formula of ( cashflow / risk ) while maintaining a base of 1.75x DSCR for debt repayment and retention of cash-flow. So in the case you Illustrated, the seller instead of taking a lump sum upfront they would take the payment over a series of years ( seller finance ) with interested on that money, when purchasing the company you will ask the seller for working capital ( the formula is what's the break even for the month x amount of months, usually 3-6 ) and / or if there is money left in the business you can use that to get a working capital loan on it. But your debt repayment is not based on the money in their bank account but the yearly cash-flows. And minimum you want $300k in earnings, the lower the riskier and the less likely to get external funding. Investors want minimum $1M in earnings as there is more "meat on the bones" and rightly so.

  • @Loreleiiii
    @Loreleiiii Жыл бұрын

    What about getting a business loan as a down payment to finance an owner seller contract?

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    You could, but that's probably going to be hard to achieve - there are easier ways to finance a deal

  • @yonialayev
    @yonialayev3 жыл бұрын

    According to the sixth method: 1. business Purchase $ 1 million, 2. The business account has $ 100,000 3. The owner leaves the money in the company, 4. The company will be worth $ 1.1 million. 5. The owner does not have to pay 40% tax on if he would take a dividend, but only 10% because he left the money in the company, does this mean that the remaining 30% can be used as personal capital to get a loan from the bank and with it pay the owner? 6. What percentage of UK tax is paid on the profit from the sale of the business?

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    Please watch more videos on this channel as your logic went wrong from point 3

  • @yonialayev

    @yonialayev

    3 жыл бұрын

    @@theDealmakers I saw all the videos and there was no more extensive information in the videos on this point. I'd be happy if you direct me

  • @billionaireacquisitionmast459

    @billionaireacquisitionmast459

    3 жыл бұрын

    @@yonialayev Like I tell people we are not evaluating businesses we are making offers, with that said; your offer is based on the formula of ( cashflow / risk ) while maintaining a base of 1.75x DSCR for debt repayment and retention of cash-flow. So in the case you Illustrated, the seller instead of taking a lump sum upfront they would take the payment over a series of years ( seller finance ) with interested on that money, when purchasing the company you will ask the seller for working capital ( the formula is what's the break even for the month x amount of months, usually 3-6 ) and / or if there is money left in the business you can use that to get a working capital loan on it. But your debt repayment is not based on the money in their bank account but the yearly cash-flows. And minimum you want $300k in earnings, the lower the riskier and the less likely to get external funding. Investors want minimum $1M in earnings as there is more "meat on the bones" and rightly so.

  • @chidiemeke8331

    @chidiemeke8331

    2 жыл бұрын

    @@billionaireacquisitionmast459 I just visited your channel & subscribed. Your doing a great job❤️ Hopefully you get more visitors too

  • @snowglider400
    @snowglider4003 жыл бұрын

    Can I buy Jonathan Jay?

  • @bonniejuanita
    @bonniejuanita3 жыл бұрын

    Is it possible to approach a business which is part of a franchise in this way, or do you think it would weaken a person's chances, because franchises are more financially stable.

  • @SuccessTrackUK

    @SuccessTrackUK

    3 жыл бұрын

    I never advise anyone buys a franchise

  • @megamistful

    @megamistful

    3 жыл бұрын

    @@SuccessTrackUK What is wrong with buying an existing franchise? I am very curious about this statement

  • @SuccessTrackUK

    @SuccessTrackUK

    3 жыл бұрын

    @@megamistful why Would you buy a business where you can’t change the name, can’t change the products, can’t change the pricing, can’t change the marketing and have to pay a percentage of turnover to someone else?

  • @elijahisaiahx920

    @elijahisaiahx920

    2 жыл бұрын

    @@megamistful I own a healthcare franchise and I will NEVER buy another franchise in my life.

  • @saggzophon3

    @saggzophon3

    2 жыл бұрын

    @@megamistful Basically Franchise is buying yourself a Job. The franchise business model is designed to make the FranchiSOR rich, not the FranchiSEE. Jon is 100% right. No franchisee ever becomes rich.

  • @maximo5737
    @maximo5737 Жыл бұрын

    Love your content. Does this apply to USA also .

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    yes, it does - any country

  • @maximo5737

    @maximo5737

    Жыл бұрын

    @@theDealmakers thank you so much for this clip right here. Took lot of note. However, a question that keep coming up for me was.

  • @maximo5737

    @maximo5737

    Жыл бұрын

    @@theDealmakers Got your book. And I can confidently say, I don't know how to put it down. Got it last night. 80% done. I do have a question that I could not find in the book.

  • @maximo5737

    @maximo5737

    Жыл бұрын

    What is the business structure best set up for a Merger and acquisition business like this (LLC, C Corp, S corp, B crop) etc?

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    @@maximo5737 My advice in this area only cover the UK - you would need specific accounting/legal advice for your country

  • @gd6576
    @gd65763 жыл бұрын

    Mind blown. 6th method. Tell me more.

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    what do you want to know?

  • @gd6576

    @gd6576

    3 жыл бұрын

    @@theDealmakers Thanks for responding. I would like to continue this conversation via email, if possible. I find your thought process very intriguing. What would be the best method of contacting you? Much appreciated.

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    @@gd6576 if you want to learn how to buy a business this way, then this is the best course to attend: www.thedealmakersacademy.com/FAST

  • @billionaireacquisitionmast459

    @billionaireacquisitionmast459

    3 жыл бұрын

    @@gd6576 Like I tell people we are not evaluating businesses we are making offers, with that said; your offer is based on the formula of ( cashflow / risk ) while maintaining a base of 1.75x DSCR for debt repayment and retention of cash-flow. So in the case you Illustrated, the seller instead of taking a lump sum upfront they would take the payment over a series of years ( seller finance ) with interested on that money, when purchasing the company you will ask the seller for working capital ( the formula is what's the break even for the month x amount of months, usually 3-6 ) and / or if there is money left in the business you can use that to get a working capital loan on it. But your debt repayment is not based on the money in their bank account but the yearly cash-flows. And minimum you want $300k in earnings, the lower the riskier and the less likely to get external funding. Investors want minimum $1M in earnings as there is more "meat on the bones" and rightly so.

  • @chidiemeke8331

    @chidiemeke8331

    2 жыл бұрын

    @@billionaireacquisitionmast459 my mind is blown by all this knowledge in the comment section 🤯.

  • @darrylculbertson2749
    @darrylculbertson27494 жыл бұрын

    Can this be applied in the U.S.?

  • @theDealmakers

    @theDealmakers

    4 жыл бұрын

    yes, it's the same world-wide

  • @zapk3560
    @zapk35609 ай бұрын

    Rarely practical

  • @theDealmakers

    @theDealmakers

    9 ай бұрын

    this is how all businesses are bought - unless you have a lot of money - and most people don't

  • @deepparekh8720
    @deepparekh8720 Жыл бұрын

    Do these techniques work in Europe and all over the world ?

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    yes- every country has it's own legal and accounting rules but the principles are the same

  • @veev327
    @veev3274 жыл бұрын

    Can I aquire a business without PG?

  • @theDealmakers

    @theDealmakers

    4 жыл бұрын

    yes, you can

  • @hishamelkot6886
    @hishamelkot68863 жыл бұрын

    hi jo , now one sells business unless it was losing, otherwise they won't , if retiring they give it to there son , or any relative ofr friend

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    are you saying that no one ever sells a profitable business? Interesting opinion

  • @ps6772

    @ps6772

    3 жыл бұрын

    Not everyone wants to take over a business, I know many people who owns business and a son or daugther, but their offspring have no interest in becoming a business owner

  • @waysofaquarius649

    @waysofaquarius649

    2 жыл бұрын

    My dad sold his business instead of giving it to me because he’s a stubborn man and wouldn’t listen to my business development ideas. It was always his way which is why it wasn’t working out for him

  • @amratpathak6418
    @amratpathak64183 жыл бұрын

    Jay, ??? I got very bad credit How do I go through

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    go through what?

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    @@udbdkuhsvd5000 your credit score isn't relevant when buying a business

  • @billionaireacquisitionmast459

    @billionaireacquisitionmast459

    3 жыл бұрын

    In regards to credit, anybody who owns over 20% equity in the company has to sign off, but you can get someone else to sign off for you as the guarantor. There are also options like Personal Guarantee Insurance.

  • @hishamelkot6886
    @hishamelkot68863 жыл бұрын

    they way you present it as the seller is an idiot and as a buyer , i am the genius hypnotise the seller

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    nope, not at all

  • @santoz66
    @santoz663 жыл бұрын

    Nearly for 2 minutes you are repeating the same statement lol

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    some things are worth repeating

  • @caribbeanvibes4070

    @caribbeanvibes4070

    3 жыл бұрын

    I felt the same way

  • @juddbrady1825

    @juddbrady1825

    3 жыл бұрын

    Don’t listen then go away

  • @moumenmikhaeil4386

    @moumenmikhaeil4386

    2 жыл бұрын

    What a silly comment...the man put to much effort to make that video you have to participate it at least...

  • @toltec247

    @toltec247

    Жыл бұрын

    Proof that small minds are everywhere

  • @rajb688
    @rajb6884 жыл бұрын

    Jonathan... I am a former lawyer. I went through tough financial issues due to marriage breakdown. My credit rating is knackered but I am determined to get back on my feet. Can I work this model with a poor credit rating? I have some good ideas for acquisitions from my prior area of expertise..

  • @SuccessTrackUK

    @SuccessTrackUK

    4 жыл бұрын

    Raj B your credit rating isn’t really relevant

  • @rajb688

    @rajb688

    4 жыл бұрын

    Jonathan Jay thanks but won’t my ability to obtain credit impact my power to fund or invest into the acquisitions ... even if i don’t physically need to dip into credit (I understand buyer finance etc) ... do I need to show financial strengths on a private level?

  • @SuccessTrackUK

    @SuccessTrackUK

    3 жыл бұрын

    @@rajb688 no, you don’t

  • @Igor.I.Molchan
    @Igor.I.Molchan2 жыл бұрын

    This explanation is not clear for me. It will be more understandable if you write some scheme or make some illustration

  • @happyandhealthy888
    @happyandhealthy8883 жыл бұрын

    I agree, but what if the bank money platform is missing?

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    what's a money bank platform?

  • @anirudhhattangadi3534
    @anirudhhattangadi3534 Жыл бұрын

    My plan is to buy a hotel business which is doing well

  • @Loreleiiii

    @Loreleiiii

    Жыл бұрын

    Same let’s partner up and be learning buddies lol

  • @anirudhhattangadi3534

    @anirudhhattangadi3534

    Жыл бұрын

    @@Loreleiiii before that for my personal satisfaction like to develop professional qualifications and knowledge in the field of finance and statistics, so that can be cfo of my own business

  • @hishamelkot6886
    @hishamelkot68863 жыл бұрын

    my mate wants to sell his business for 183k , the yearly revenue is 300 pound /year

  • @dallyuk
    @dallyuk2 жыл бұрын

    literally showing my mum this for meme value

  • @danlawson6652
    @danlawson6652 Жыл бұрын

    If I could show you how to buy a business without actually showing you how to buy a business without any money and if I could show you how to buy a business and say the same thing over and over and over

  • @theDealmakers

    @theDealmakers

    Жыл бұрын

    Well, there are actually six methods in this video

  • @IanMcFerran
    @IanMcFerran3 ай бұрын

    A minute and a half in and all that's been said is the 'title' of the video in a number of different way. In business, you cut to the chase. So... I'm out!

  • @delta1200
    @delta12003 жыл бұрын

    You should remove this from youtube

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    why is that?

  • @delta1200

    @delta1200

    3 жыл бұрын

    @@theDealmakersThis is really a good information and can be crucial in creating the red sea of competitors... I mean, I am literally going to the banks this week to see if we could do something with it (Croatian banks). I messaged you on LinkedIn and hopefully we speak soon. Stay safe.

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    @@delta1200 you're only competitors are those who take action - and that's always less than half

  • @delta1200

    @delta1200

    3 жыл бұрын

    @@theDealmakers I agree. I like to work in a way that if I receive an information from someone that I benefit from, to show gratitude. I also noticed that not everyone works in that way, hence exposing myself may not be a good idea. But this is only me. From your videos I noticed that you have the confidence to trigger the minds of the people, I highly respect that.

  • @deliweharry1737

    @deliweharry1737

    Жыл бұрын

    Jonathan i need help plz on how to buy a business i need some advice plz

  • @stevevanmeter4820
    @stevevanmeter4820 Жыл бұрын

    Wrong mindset

  • @hsahil
    @hsahil2 ай бұрын

    more than 2 mins to say just one line?????

  • @cg1g325
    @cg1g3253 жыл бұрын

    Repeat repeat and talk like you are deaf!

  • @theDealmakers

    @theDealmakers

    3 жыл бұрын

    thank you!

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