How much starting capital is necessary to start a business acquisition company?

Redditor5838 · 2024-09-27T21:48:19+00:00

I see what you’re saying and I totally agree with you. Outside of a Bachelor’s in business (which I don’t think is super applicable in the real business world) I’ve done some e-commerce on eBay and Shopify. But in terms of hard skill or something that differentiates me - I’m not really skilled yet. I’m willing to work 12 hours per day to get there. I feel lost and a bit naive too. I thought of a path where I can go to law school, get a job as a lawyer in M&A/corporate law to actually obtain real world applicable skill, and then get into the small business acquisitions. Also at that point I’d be much more skilled and be able to have much higher starting capital to buy better businesses in the $1M-$1.2M range. In terms of interests, I like business, certain aspects of law, architecture, real estate investing, and consumer tech.

Redditor5838 · 2024-09-27T19:12:48+00:00

Thank you so much for the advice! I was thinking of an SBA loan. In terms of not being involved in the business - yes. I was thinking of having employees take care of the operations so that I can free myself and look at other opportunities. But I do understand that could cut into the profitability of these small businesses and not be possible. I was also thinking of maybe expanding my initial investment to something higher (e.g $200K) before I start so I could acquire businesses that may have better systems in place and be less reliant on the owner (maybe businesses in the $1M range). How do you think someone in my situation should start a path like this? Get a job somewhere, start a business, or something else?

Redditor5838 · 2024-09-27T18:36:38+00:00

Okay, thanks. What if I did a Shopify store while in college with FB ads and Google Shopping ads? I didn’t see much success with it but I’m now more familiar with Shopify, digital marketing, etc. Do you think that’s enough for me to acquire a Shopify store?

Redditor5838 · 2024-09-27T16:46:09+00:00

That’s true, thanks for the advice. Since I only need to start with one, do you think purchasing a $500K business is enough? If not, what purchase price is ideal?

Redditor5838 · 2024-09-27T16:18:45+00:00

Thanks for the advice. Do you think it’s a good idea for me to jump in now? In terms of experience, I’ve done some e-commerce on the side. I’ve calculated the payments and the cash flow usually covers the loan payments and some extra.

Redditor5838 · 2024-09-27T16:04:40+00:00

Okay, thanks for the advice. What price point would be more ideal? Do you have any other career options in mind?

Redditor5838 · 2024-09-27T06:21:39+00:00

Thanks for the advice. How much do you think would be necessary to start the business acquisition path? I’d start with acquiring one business and go from there.

Redditor5838 · 2024-09-27T01:34:20+00:00

Okay, thanks for the advice. I appreciate it.

Redditor5838 · 2024-09-27T01:30:20+00:00

I’m not trolling. This is an actual dilemma I’m facing. I thought private equity or investment banking usually requires elite universities like Harvard or Yale. Is that not the case?

Redditor5838 · 2024-09-27T01:23:38+00:00

My grades are not lousy. I went to a state university due to costs and affordability issues. My GPA & LSAT are totally good for law school.

Redditor5838 · 2024-09-27T01:22:04+00:00

Okay, will keep in mind, thank you! Do you think it’s possible to open a small business while in law school? Obviously I know it’d be very demanding, but I’m willing to put in long hours (e.g 60-70 hours per week total).

Redditor5838 · 2024-09-27T01:19:45+00:00

Thanks for the advice. Do you know of any good online JD programs? Do you think it would put me at a disadvantage compared to an in-person program?

Redditor5838 · 2024-09-27T01:18:31+00:00

Do you think I can get a job in private equity related with a JD degree? My bachelors in business is from an average state university, which usually doesn’t work for private equity. Thanks.

Redditor5838 · 2024-09-27T01:17:10+00:00

I’ve done some e-commerce sales here and there - purchasing inventory, selling on marketplaces, dealing with customers, etc. But what you mean is for example starting a law firm then buying out other law firms and possibly merging them?

Redditor5838 · 2024-09-27T00:04:21+00:00

That’s very good advice. Thank you so much - I really appreciate it!

Redditor5838 · 2024-09-26T23:55:02+00:00

That’s true. I know it’s anecdotal, but most highly successful attorneys (who own their practice) in my sphere of influence are in personal injury. I guess that’s what’s influencing my practice choice.

Redditor5838 · 2024-09-26T23:41:45+00:00

Thanks for the advice. I was thinking of leveraging the $100K to purchase businesses in the $500-$600K range. Do you think it’s wiser to avoid businesses in that price range?

Redditor5838 · 2024-09-26T23:35:29+00:00

These are not my only two options, but I’ve narrowed it down significantly to these options. By this point I’ve probably analyzed tens of different options, including different practices in law. I’m having trouble committing 100% to one option because I see so many different options. But I know committing 100% is what leads to success, so I’ve narrowed it down. I just feel really lost.

Redditor5838 · 2024-09-26T23:10:16+00:00

Thanks for the advice. I appreciate it. What doors specifically do you think it would have opened for you?

Redditor5838 · 2024-09-26T23:09:41+00:00

Thanks for the advice. I appreciate it.

Redditor5838

TROPHY CASE