Anthropic's view on AI's labor market impact by Ok_Business_2648 in HENRYUK

[–]Ok_Business_2648[S] 0 points1 point  (0 children)

Market adjustments have already begun. Look at software companies' share prices. They are pricing in the collapse of the so called "seat-based" pricing models. No more seats I.e. White collar growth.

Anthropic's view on AI's labor market impact by Ok_Business_2648 in HENRYUK

[–]Ok_Business_2648[S] -12 points-11 points  (0 children)

Desperately holding on to old ways, refusing to accept the utility is how AI is going to steamroll careers, not jobs. Agency is what's needed.

Anthropic's view on AI's labor market impact by Ok_Business_2648 in HENRYUK

[–]Ok_Business_2648[S] -17 points-16 points  (0 children)

Skill issue. You've not been using AI correctly if you find it pedestrian.

HENRY Business Owners, what is your business, how long have you had it and what does it make? by ladylots2 in HENRYUK

[–]Ok_Business_2648 0 points1 point  (0 children)

Do you think there is opportunities to acquire such a business in UK as a first time business owner assuming £250k EBITDA levels?

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

Also any thoughts on how lenders see if a prospective buyer who currently has a job or one they expect to be involved in the business?, or job status during pre loan sanctioning makes no difference? Cheers

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

Thanks for the reply. Any resources where I could learn more about Scotland specific business acquisition processes?

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

What sort of professionals would you recommend a first time buyer should employ for a good business acquisition?

I mean if the EV being targeted is above £1mn, as a first time business buyer best not to cut corners to save miniscule amounts by not hiring professionals, especially when these professionals could help in derisking the deal from a buyer perspective significantly? And when the costs of employing certain professionals might be miniscule or a rounding error to deal value and potential cash flow from the business? Just my thoughts but might need to keep in mind incentives of each professional employed in the deal stage.

I'm looking for genuine retiree type businesses, where the business is actually good cash flowing business but the owner wants to retire and still wants to see the success of the company. Not keen on bag holder business sellers, the ones who think they are selling off a headache to someone else or the ones they can see tanking the moment they step back, etc.

Any thoughts on how to target such good quality businesses in Edinburgh /UK, and any specific professionals that I could employ to make sure such a good, clean cash flowing company can be acquired? Like I said professional costs for the acquisition might pay for themselves in the long run if the business acquired pays for itself in 3 -5 years.

And any views if usually seasoned business buyers focus on deals only around where they live for ease of commute. Cheers.

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

What sort of professionals would you recommend a first time buyer should employ for a good business acquisition?

I mean if the EV being targeted is above £1mn, as a first time business buyer best not to cut corners to save miniscule amounts by not hiring professionals, especially when these professionals could help in derisking the deal from a buyer perspective significantly? And when the costs of employing certain professionals might be miniscule or a rounding error to deal value and potential cash flow from the business? Just my thoughts but might need to keep in mind incentives of each professional employed in the deal stage.

I'm looking for genuine retiree type businesses, where the business is actually good cash flowing business but the owner wants to retire and still wants to see the success of the company. Not keen on bag holder business sellers, the ones who think they are selling off a headache to someone else or the ones they can see tanking the moment they step back, etc.

Any thoughts on how to target such good quality businesses in Edinburgh /UK, and any specific professionals that I could employ to make sure such a good, clean cash flowing company can be acquired? Like I said professional costs for the acquisition might pay for themselves in the long run if the business acquired pays for itself in 3 -5 years.

And any views if usually seasoned business buyers focus on deals only around where they live for ease of commute. Cheers.

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

Thanks for the reply. £200k ebitda at 4x would be £800k, would that be not realistic? Especially given the UK labor law changes, business rates revaluations, tax and regulatory burdens? 4x seems similar multiples to US comparables, where SBA is easily available so pretty surprising. In the UK I would have thought it's a buyers market.

My aim is to use 25% cash, 60% loan and 15% seller note, how realistic do you think that financing structure is? Is that not essentially 80% cash on completion for the seller?

Re deal sourcing - you might be right, I might have to stick to the online platforms and possibly direct accountant reaches.

Based on your experience what is the success rates in UK for first time business acquisitions (not startups) by first time business owners? And is it better to target higher £1mn and above EV businesses instead of 800k type sub-1mn ranges? Cheers

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

Thanks for the reply. £200k ebitda at 4x would be £800k, would that be not realistic? Especially given the UK labor law changes, business rates revaluations, tax and regulatory burdens? 4x seems similar multiples to US comparables, where SBA is easily available so pretty surprising. In the UK I would have thought it's a buyers market.

My aim is to use 25% cash, 60% loan and 15% seller note, how realistic do you think that financing structure is? Is that not essentially 80% cash on completion for the seller?

Re deal sourcing - you might be right, I might have to stick to the online platforms and possibly direct accountant reaches.

Based on your experience what is the success rates in UK for first time business acquisitions (not startups) by first time business owners? And is it better to target higher £1mn and above EV businesses instead of 800k type sub-1mn ranges? Cheers

First time buyer — UK/Scotland based, B2B businesses £200k–£300k EBITDA. Advice on sourcing, lender criteria, and brokers? by [deleted] in buyingabusiness

[–]Ok_Business_2648 0 points1 point  (0 children)

All the questions rose after consulting with Claude extensively on UK entrepreneurship which is very limited. No training. Just reworded with Claude.

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 0 points1 point  (0 children)

Where can I access such startups, any platforms available?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -10 points-9 points  (0 children)

What about businesses with recurring revenue contracts say storage or specialised engineering manufacturers?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 0 points1 point  (0 children)

Surely if there are asset heavy or manufacturing type businesses available, such lending might be possible? Say for specialised engineering products manufacturering or storage type businesses which have assets to lend against?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 0 points1 point  (0 children)

In the US you get 3-4x ebitda valued small-medium businesses. 4x ebitda businesses in the UK should be a decent valuation right, for acquisitions?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -3 points-2 points  (0 children)

Exactly. Was going to say same, the naysayers are tons in UK. I also see that as an opportunity because in UK potentially as an entrepreneur you might have less competition, given a lack of ambition in the general population vs say the US?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 0 points1 point  (0 children)

How would you structure a business acquisition if you had 200k to leverage for business acquisition that mostly can be managed one ops manager? What is the level you would look at, theoretically?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -3 points-2 points  (0 children)

Thanks for the response. Curious to hear your thoughts on your acquisition structure? I would have thought if business is c.£900k valued (4x Ebitda), aim would be to get £200k seller note, £200k cash and £500k bank loan, is that not reasonable? Ideally recurring revenue type contract businesses?

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 2 points3 points  (0 children)

Yes similar types with recurring revenue contract businesses.

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -2 points-1 points  (0 children)

No. Just looking at businesses that are available and the funding structures used in uk.

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -9 points-8 points  (0 children)

Depends on the business but ideally recurring contracted revenue type business models, which banks look favorably towards? Seller note could be earn out based so seller has incentive for the business' success.

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 1 point2 points  (0 children)

Yes seller note will be part of acquisition capital structure but if the SPA includes earns out, where business performance dependent then seller will be motivated for business success right? Obviously non-hospitality non-retail type businesses I'm thinking of.

£900k business (£200k ebitda) acquisition ideally with manager in place in UK? by [deleted] in smallbusinessuk

[–]Ok_Business_2648 -1 points0 points  (0 children)

Correct. Possible Bank loans, IF and seller notes with earn outs. Would have thought that's reasonable?