Video I recently did on DSCR.

Hi guys, whats a fair Interest rate to offer the seller for seller finance ?

When analysing a business to buy, its key to look for the post acquisition value creation opportunities. Here’s 3 comments from market leaders: KEARNY STUDY "COMPANIES THAT MAKE AT LEAST 1 ACQUISITION PER YEAR HAVE A EQUITY VALUE GROWTH RATE 25% HIGHER THAN THOSE THAT MAKE NO ACQUISITIONS" BCG Study "strategic acquisitions executed by 91% of private equity have become the most common approach to growing the value of portfolio companies" KPMG study "acquisitions will be the main source of growth in the next 3 years" The 3 KEY DRIVERS of creating value through strategic acquisitions are: 1. INCREASE REVENUE 2. LOWER COSTS 3. HIGHER EXIT MULTIPLES Synergy is a buzz word and gets thrown around very flippantly in my opinion. Look at REAL synergies, its good to ask the team a few questions: - Is the acquired product/service bought by the same economic buyer? - Do those buyers have an appetite for the acquired product/service? - I s the acquired product/service easy to plug into current infrastructure for upsell/cross sell or is training needed? Be careful not to overestimate synergies. Acquisitions shouldn't dictate your strategy. your strategy should dictate what you acquire. There are also different types of synergies: 1. Revenue synergies - cross sell/upsell, bundling packages (making the offer more attractive), access to new markets 2. Cost synergies - reduce overheads, greater efficiency, eliminate redundant systems, greater purchasing power 3. Financial synergies - bigger debt capacity, tax benefits, higher exit multiple 4. Knowledge synergies - exchanging best practises, sharing resources etc Growing through acquisition is a scaling hack when done correctly but it is important to take into account all of the above. Have a good one. Dee

Here's how you connect the 3 financial statements. We have a session planned for Jan to walk you through how to read these like a deal maker. Here's What You Need to Learn: How to read financial statements How they differ from each other How they interconnect By mastering these skills, you unlock numerous benefits, including: Running or analysing business more effectively Implementing changes to optimise cash flow Increasing profitability and much more. Let's dive deep into how these statements function... The 3 Essential Financial Statements What Each Statement Represents: Profit & Loss Statement → Your performance Balance Sheet → Your financial position Statement of Cash Flows → Your cash flow The Profit & Loss Statement This statement reveals your income and expenses. Income Summary: Revenue → Income from core business activities Other Income → Income from non-core activities (e.g., credit card points) Expense Summary: Cost of Goods Sold → Costs directly related to producing a product or service Operating Expenses → Costs related to running business operations Other Expenses → Costs unrelated to income generation or business operations The key metric in the Profit & Loss statement is net income, calculated by subtracting total expenses from total income. This statement informs the other two statements but does not consider their activities. The Balance Sheet This statement provides a snapshot of your company’s financial position. Components: Assets → Economic resources owned or controlled by the business Liabilities → Amounts owed to creditors Owner's Equity → Amounts owed to the owners The Balance Sheet is cumulative, the only one of the three statements to present information this way. It incorporates data from the Income Statement via retained earnings, which is the cumulative balance of net income. The Statement of Cash Flows This statement details your cash movements. Sections: Cash from Operating Activities → Cash flow from business operations

Here’s 3 comments from market leaders: KEARNY STUDY "COMPANIES THAT MAKE AT LEAST 1 ACQUISITION PER YEAR HAVE A EQUITY VALUE GROWTH RATE 25% HIGHER THAN THOSE THAT MAKE NO ACQUISITIONS" 2021 BCG Study "strategic acquisitions executed by 91% of private equity have become the most common approach to growing the value of portfolio companies" 2021 KPMG study "acquisitions will be the main source of growth in the next 3 years" The 3 KEY DRIVERS of creating value through strategic acquisitions are: 1. INCREASE REVENUE 2. LOWER COSTS 3. HIGHER EXIT MULTIPLES Synergy is a buzz word and gets thrown around very flippantly in my opinion. Look at REAL synergies, its good to ask the team a few questions: - Is the acquired product/service bought by the same economic buyer? - Do those buyers have an appetite for the acquired product/service? - I s the acquired product/service easy to plug into current infrastructure for upsell/cross sell or is training needed? Be careful not to overestimate synergies. Acquisitions shouldn't dictate your strategy. your strategy should dictate what you acquire. There are also different types of synergies: 1. Revenue synergies - cross sell/upsell, bundling packages (making the offer more attractive), access to new markets 2. Cost synergies - reduce overheads, greater efficiency, eliminate redundant systems, greater purchasing power 3. Financial synergies - bigger debt capacity, tax benefits, higher exit multiple 4. Knowledge synergies - exchanging best practises, sharing resources etc Growing through acquisition is a scaling hack when done correctly but it is important to take into account all of the above. Have a great evening! Dee