Why Real Estate Investors are Shifting to Profitable Acquisitions with Founder of Acquisition CEO, Michael Byars’ Proven Model of Scaling Existing Businesses
Profitable acquisitions refers to the strategy of acquiring businesses that are already successful and have a proven track record of profitability. This approach provides a lower-risk option for investors and entrepreneurs who want to invest in businesses with a proven track record of success.
The benefits of profitable acquisitions include the potential for increased revenue and profits through scaling and integration of complementary businesses. Additionally, this approach allows for access to established networks, information, and opportunities that may not be available to startups.
It comes as no surprise that real estate investors are shifting towards the profitable acquisitions model.
Michael Byars is the founder of Acquisition CEO, and has gained a reputation for his ability to maximize market potential. He started his journey in the tech industry at the age of 19 and was able to grow his company from just two locations to over 10,000 endpoints generating $40 million per year in revenue. Subsequently, he kept his momentum going and at 21 years old, obtained his first acquisition deal by purchasing a restaurant.
Michael utilized innovative approaches to grow the company from $200,000 per year in gross revenue and $50,000 in net profit to over $3 million per year gross and $1 million per year net profit within the first 2 years. He operated this company for 9 years, developing a framework for maximizing market potential, and then went on to sell it at its highest valuation.
Michael then bought a similar restaurant that, at the time of purchase, was failing and netting a loss, grossing only $200,000 per year.
Through the operational acumen that Michael gained from the first restaurant, he was able to quickly grow the second restaurant to over $3 million in sales and over $1 million in profit in the first 12 months. He exited this business in 13 short months.
In 2014 and 2015, he coupled the profit from the sale of those businesses and the annual profit of the tech support company and began buying single-family homes within a 1-hour radius of his office.
Michael started with 1 property and actualized obtaining over 170 rental homes and commercial buildings. Observing the cyclical needs of his properties, he began purchasing bolt-on companies around the rental homes. He obtained plumbing, HVAC, property management, and general contracting/construction companies to employ the synergies between the companies. In 2020, at the beginning of the Coronavirus pandemic, he capitalized on the opportunity to purchase an e-commerce company.
Michael then transitioned out of real estate investing, stating, “I realized the potential of acquisitions compared to the real estate market. After buying, flipping, and renting homes, I recognized that the market is volatile in that space,” Michael says.
Michael Byars has since amassed $140 million per year in revenue across the 20 companies in his portfolio.
The Acquisition CEO founder has recently launched a mastermind program and course catered to business owners and entrepreneurs. This course is designed to provide a deep understanding of how to grow a business through mergers and acquisitions.
The Acquisiton CEO mastermind program is specifically aimed at educating entrepreneurs on the strategic advantages of acquiring an existing business, rather than starting from scratch. It offers valuable guidance on identifying target companies, negotiating deals, and maximizing value for their business.
One of the most significant advantages of Michael’s approach to acquisitions is that it provides a lower-risk option for investors and entrepreneurs who want to invest in businesses with a proven track record of success. Instead of taking on the risk associated with launching a new business from scratch, investors can rely on the proven track record of the businesses that Michael acquires and scales.
Michael’s approach to investing in profitable acquisitions and scaling existing businesses is a unique and effective strategy. By seeking out companies that complement each other and can provide synergies, he has been able to create a network of successful businesses that continue to generate significant revenue.