How to Raise Capital to Buy an Online Business with Mohit Tater
56m
·
Top M&A Entrepreneurs
·
This episode was brought to you by The Magnolia Firm. Specialty M&A Business Brokerage firm helping business owners sell their company. https://exit.themagnoliafirm.co/top
Mohit Tater shares his acquisitions and investment journey, including growth strategies, revenue verification, and a focus on content sites and affiliates. He discusses raising capital, cap table structuring, and launching Blackbook investments. Mohit explores deal sourcing, negotiation tactics, and lessons learned from failed deals. He addresses investor characteristics, the Multi Member LLC Investment Vehicle setup, and managing investments. He touches on mentors, Webstreet platform, and plans for diversification.
SHOW NOTES:
00:00 Episode brought to you by The Magnolia Firm
00:34 Intro to Mohit Tater - how it all started
03:09 What did you do to grow your first acquisition?
05:21 Do you still use Flippa?
05:36 2nd Acquisition - getting scammed
06:55 What did you learn from getting scammed
07:38 How do you verify revenue
09:29 His focus: Content sites and affiliates
09:55 When he started buying larger revenue site and his first investor
12:01 Formal Pitch or Friends and Family
13:02 Investors ROI over 3 years
14:11 Where he found the deal and revenue numbers
14:50 Conversation with investor to sell
15:19 Deciding to reduce risks
16:20 A deal that did not work out - why it did not work out.
17:34 How he first structured the cap table with investors
18:40 Launching Blackbook investments
20:40 Minimum investment date of deployment
22:11 How many investors he has on his email list
22:47 Types, Size of Deals and On or Off Market & where he sells them
24:22 What he likes to do
25:22 How he negotiates overpriced deals
26:58 Rolling equity
28:05 Proof
28:23 Partners?
28:45 Sell your business Magnolia Firm
29:09 How long did it take to build a list of investors
30:27 What do these investors look like?
31:36 How he sets up the Multi Member LLC Investment Vehicle
33:56 Do investors get dividends?
34:47 How many investments do you current manage?
36:00 Where do you want this to go - what he needs in resources?
38:06 Who is your mentor?
39:38 Why not raise fund - and Webstreet
42:01 Webstreet Fees & value
44:58 How the Webstreet rolling fund decides on deals
46:46 What Webstreet investors expect to see
48:22 Do investors push back on forecasts
48:57 How do you qualify to be on Webstreet
49:57 What about working capital investment?
51:00 How many acquisitions have you made from Webstreet money?
52:43 Plans to buy bigger websites?
53:57 What he needs & diversifying
LINKS to Mohit Tater
www.linkedin.com/in/mohittater/
https://bbi.xyz/
DealFlowSystem: https://dealflowsystem.net/
LinkedIn: https://www.linkedin.com/in/jonstoddard/
The episode How to Raise Capital to Buy an Online Business with Mohit Tater from the podcast Top M&A Entrepreneurs has a duration of
56:56. It was first published
More episodes from Top M&A Entrepreneurs
It took 6 years but...I just wanted to be rich
Imagine knowing it would take six years to buy a business. Six years of negotiations, setbacks, learning, and persistence. Would you have the guts to start?
❤️ Enjoy this interview? SUBSCRIBE for more: https://www.youtube.com/c/JonStoddard
It’s a test of endurance that asks more of you at every turn. Can you stay committed when the process drags on? Can you keep your investors engaged and maintain the confidence of your stakeholders? This is not just about having the capital; it's about having the perseverance and vision.
Chapters
00:00 The Journey of Acquiring Companies
06:55 Building Relationships with Investors
23:40 Understanding Fees and Compensation
25:49 The Importance of Building a Network
29:40 The Role of an Independent Sponsor
31:58 The Need for Patience in the Deal-Making Process
39:18 Goal of Running a Company as CEO
44:41 Starting Early and Engaging with Investment Bankers and Business Owners
Successful M&A Advisor Secrets with Denis Mezheritskiy
Ever thought about being an M&A Advisor? Watch this video about Denis Mezheritkiy's journey to learn if the gig is right for you.
When Denis Mezheritskiy inherited his parents' trucking company, he saw an opportunity to merge it with his wholesale distribution business, creating a more robust operation. Facing challenges like low margins and perishable goods, Denis refined his strategy to enhance efficiency and reduce waste.
His entrepreneurial journey didn't stop there. Denis ventured into the mergers and acquisitions (M&A) sector, learning to differentiate the roles of business brokers and M&A advisors. He emphasized the importance of clean financials and organized operations for successful transactions, drawing from his experience with deals ranging from $100,000 to $23 million.
In a revealing conversation with Jon Stoddard, Denis shared key insights about the M&A industry, including valuation techniques, due diligence, and the intricacies of negotiating deals. His advice is invaluable for those interested in M&A, highlighting the blend of financial acumen and relationship-building necessary to thrive.
For more in-depth insights, watch the full interview where Denis dives deeper into the challenges and complexities of buying and selling businesses.
Buy a Million-Dollar Business in 2024
How 2 Acquisitions Saved My Failing VC Funded Startup to SPAC IPO
Running a startup during a global pandemic can feel like navigating through a storm. This is the story of Joe Davey, the entrepreneur behind the tech startup Banzai.
Starting with venture capital backing, Joe’s venture began to gain momentum, but the arrival of COVID-19 put everything at risk. Faced with the potential collapse of his company, Joe needed to make a critical decision quickly.
He proposed a strategic pivot to his investors: acquiring two companies that could provide the necessary stability and growth. This move not only saved Banzai but also set it on a new path forward. Following this, the company ventured into the public markets through a SPAC to support its expansion.
However, the challenges were far from over. Despite a promising start, the SPAC's value fell dramatically from $10 to just 30 cents a share. Despite these setbacks, Joe Davey's journey with Banzai is a lesson in persistence, adaptation, and the realities of navigating a startup through unpredictable times.
Watch the video to see how Joe's decisions shaped the future of Banzai and what it takes to keep a dream alive in the face of adversity
00:00 Introduction and Background
07:07 Adapting to the Impact of COVID-19
12:35 Acquisitions: High Attendance and Demio
26:01 Going Public and Seeking Acquisitions
35:19 Lessons Learned and the Importance of Resilience
$1 Million to $14 Million in Revenue from 2 Acquisitions & Bankruptcy to Boot
www.dealflowsystem.net
The Accidental M&A Roll-Up Entrepreneur
Jordan Evans, an accidental M&A Roll-Up entrepreneur, shares his journey of acquiring his family's language service business and turning it into a successful roll-up strategy. He discusses the importance of earning and learning while working for someone else, the value of self-teaching and optimizing for roles that provide real-world experience. Jordan emphasizes the need to be willing to do every role in a small business and the importance of understanding cash flow and financials. He also shares his experience with buying multiple businesses, the challenges and successes of the roll-up strategy, and the importance of building relationships with brokers and sellers. In this conversation, Jon Stoddard discusses his experience with acquiring and integrating multiple businesses. He shares insights on the challenges and strategies involved in the acquisition process, including finding the right deals, managing integration and personnel changes, and dealing with difficult sellers. He also emphasizes the importance of focusing on people and building trust with the acquired companies. Jon highlights the benefits of outsourcing and hiring overseas, particularly in Latin America, to reduce labor costs and improve cash flow. He also discusses the role of off-the-shelf software in streamlining operations and maximizing efficiency. Jon concludes by sharing his plans for future acquisitions and the potential for growth in the fragmented service industry.
Keywords
roll-up strategy, language service business, acquiring a business, earning and learning, self-teaching, real-world experience, cash flow, financials, buying businesses, challenges, successes, relationships with brokers and sellers, acquisitions, integration, personnel, outsourcing, cash flow, software, growth
Chapters
00:00 Introduction and Background
02:38 Transitioning from Employee to Entrepreneur
08:26 The Benefits of Buying a Business
14:44 Lessons Learned and Challenges Faced
29:45 Creating Generational Wealth
36:18 The Importance of Sales and Representation
37:14 Navigating the Acquisition Process
39:06 Building Trust and Maintaining Goodwill
40:05 Maximizing Cash Flow through Outsourcing
44:16 Expanding the Scope of Acquisitions
48:03 Challenges with Working Capital
52:46 The Benefits of Off-the-Shelf Software
56:06 Overcoming Blind Spots and Evolving as a Leader
01:02:43 The Journey of Finding the Right Deals
01:04:40 Walking Away from a Deal
01:06:01 Reassessing Capital Allocation