Danny reveals how he acquired nearly £900k worth of manufacturing businesses without spending a penny of his own money.

GUEST

Danny — Manufacturing business acquirer with three no-money-down deals completed.

EPISODE SUMMARY

Danny has bought multiple manufacturing businesses using creative deal structures that required no personal capital. His first acquisition involved separating the property from the business, selling the real estate to a property investor on day one, then paying for the business itself out of its own profits over four years. His second deal mirrored this structure, with the property acquired via commercial mortgage and cash from business one. A third deal came through an unexpected referral when a previous deal collapsed.

KEY TAKEAWAYS

▸ Splitting property from the business in a deal and selling the property to an investor on day one can fund the cash element sellers need — with no money down.

▸ The balance of consideration (the business value) can be deferred over four to five years, paid from the profits the business itself generates.

▸ Buying alongside a broker is possible, but insist on dealing directly with the sellers — the best deals are done over a cup of tea.

▸ Build a commercial property portfolio alongside your business acquisition portfolio: one gives you cash flow, the other gives you capital growth.

▸ A collapsed deal can itself become a deal-sourcing opportunity — Danny's third acquisition came directly from a candidate he'd interviewed to run a different business.

▸ Recovery loans and leverage against debtor books are legitimate funding mechanisms for day-one consideration.

DEAL HIGHLIGHT

Deal one: total consideration ~£900k, 0% from Danny's personal funds. The property (the majority of the price) was sold to an investor on day one; the business element was deferred over four years, funded by the business's own profits.

"Of course you can. It is just those people don't know how to do it — so they tell you that it can't be done because they don't know any different."

Learn more: www.dealmakers.co.uk