LONDON, ENGLAND / ACCESSWIRE / November 14, 2021 / Entrepreneur and investor Ken Mack is a well known face in the M&A world. He is famous for buying businesses using none of his own money and now he is showing others how to do the same. Mack says ‘'buying a business without using your own money is easy, you just need to make sure you are dealing with a motivated seller, and you do things in a certain way''.

Pictured: Ken Mack

‘'People don't understand it yet, but we are in a great depression. There is $80 trillion in wealth that will transition in the coming years and this is the opportunity that the average person can take advantage of. For comparison cryptocurrency is worth $2T, this opportunity is worth $80T and that is the opportunity - learning how to buy a business with zero cash and using that free cash flow to invest in various other asset classes''.

Ken specialises in leveraged buyouts. He regularly over finances deals which ensures he makes money on day one. He looks for businesses that have low debt and high equity. Ken also states that ‘'90% of leveraged buyouts have an element of seller finance involved'', which is a promising statistic for anyone looking to get involved without using their own money.

What Is Seller Finance?

Seller finance is simply a loan provided by the seller of the business. So let's say you have a business being sold for $1 million and the seller agrees to a 100% seller finance deal over 7 years. This means you would pay back the seller in installments over the 7 years until you have paid them the full price and any interest agreed. The magic piece of the puzzle is this - if the free cash flow of the business covers the debt service, then it is usually a winning deal. This is what Ken Mack teaches his students in his 5 Day Business Buying Challenge and also his Business Buyers Bootcamp.

Buy Low, Sell High

The value of a typical private business is based on a multiple of the EBITDA. EBITDA is the Earnings Before Interest, Taxes, Depreciation, and Amortization. Ken teaches you a method of buying at a low multiple of 2x EBITDA for example, and selling for a higher multiple such as 6x EBITDA a few years later. All the while you will be collecting profits while you own the businesses.

On Market Vs Off Market Deals

Ken says that the real opportunity is in off market deals. He started out many years ago by writing a letter to sellers asking them if they are interested in selling their business. When they contact him back, he knows they are motivated. Ken's process for getting deal flow involves getting a marketing company to generate industry specific data and then hiring a letter writing service to write and send a private and confidential letter on his behalf, to business owners asking if they are interested in selling their business. He says 1 out of 30 is the typical response rate from business owners. Ken Mack says his system works anywhere in the world and he has done this all over the world.

Student Success

To prove his system works, Ken took one of his own students with zero business experience and together they purchased one of the largest LED manufacturing companies in Brazil, as well as a football club in Spain.

What does the average person need to do to become successful?

Ken explains ‘'They need to raise their vibrational frequency to allow them to absorb more information. Open themselves up to understand what's happening in the world today and why. And ultimately, they need to learn how to buy revenue. Starting a business is a scam as it has a 90% failure rate, however with buying an existing business, it allows us to immediately tap into revenue and our chances of success are far greater''.

For more on Ken Mack, you can visit his website here.

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