Why Do 60% of Westbound Road’s Acquisition Deals Cross International Borders?
#acquisitions #sellabusiness #businessowners
In this video:
So, have you settled on a specific niche that you’re looking at right now, Marty? As you’re looking at where to invest? Has there been an area in industry or a size that has really been a sweet spot for you?
Marty M. Fahncke
Yeah, we kind of have two areas that we focus on personally for our investments in our advisory. So area one is on Transferable Businesses. Generally those mean digitally transferable businesses. So E-Commerce businesses, software, publishing, agencies, service businesses like yours, like you can do your business from anywhere in the world, right? So you know, service businesses, things like that. And one of the reasons for that is because we found ourselves in a really interesting niche, where about 60% of our deals are actually cross-border deals. So we do a lot of business in the UK, Mexico, Canada, all over Europe, Australia. You name it. And so we’re selling a lot of businesses from one country into buyers from another country and because there’s a lot of really solid businesses outside the United States, but the marketplace of buyers for those businesses isn’t that strong in those countries. And so you will have an entrepreneur that’ll start a really great business and operate it and be doing really well. When they’re ready to exit, they look around. There’s not a marketplace in, say, Slovenia to acquire that. But it’s a business that has a great deal of value to somebody in the United States who can leverage that business in a great way. So we do a lot of international business and so it’s gotta be kind of easily portable and transferable. The second area we do a lot of focus on is home services businesses. So interior design, air conditioning, electrical, plumbing, et cetera, again, those aren’t geographically transferable, but those are just in a category that’s just absolutely hot right now.
Scott Goodrich
Yeah.
Marty M. Fahncke
There’s a whole lot happening in that space, and there’s some things you can do with a business like that to three X, four X, or even five X its value without a whole lot of work. And so a lot of people are buying them and doing those things and then flipping them for a pretty substantial amount of Money. So there’s a lot happening in that space, and we’ve got one of our team members that’s kind of an expert in that space, so we do a lot there.
This video is an excerpt from the “Grow Your Damn Business” Podcast with Scott Goodrich. The episode is entitled “Insights on Crafting Marketable and Resilient Businesses with Marty Fahncke”, and you just might learn a thing or two if you check out the full episode at the links below…
Listen: https://player.captivate.fm/episode/587125a1-cdad-4254-8025-cec2326a2643
Watch: https://www.youtube.com/watch?v=Uwg3tdfAIYQ
To learn more about Marty Fahncke, Business Acquisitions, and Westbound Road visit our website: https://www.westboundroad.com
