By Cristhine O

Top Four Reasons Investors Choose Akbosh Investment Group

An interview with Christopher Wick, investor and chairman of Say Yes! Enterprises.

Are you satisfied with the returns on your investments? Tired of wishing you were making a significant profit on investments?

 

Or maybe you’re frustrated with the disappointing returns, absence of reliable options, and unjustified risks?

 

Then Say Yes! Enterprises is the right fit for you.

 

Say Yes! Enterprises was established by Christopher Wick, a serial entrepreneur based in Texas. Wick has many years of experience in the acquisition, building, and sales of successful businesses. After successfully assisting over 400 businesses through his award-winning international marketing agency, he transitioned into a full-time career in mergers and acquisitions.

Business mergers and acquisitions

Say Yes! Enterprises (SYE) was founded to create stable investment returns through the acquisition of low-risk businesses. While many people aspire to start their own businesses, SYE avoids the uncertainties associated with startups and only invests in existing businesses with established track records, reliable cash flow, and a history of profitability.

 

Why would you invest in a startup that has up to a 90% chance of failing?

 

Only 30% of businesses manage to survive until their tenth year. That’s just survival, and it doesn’t necessarily mean they are profitable. Source: National.Biz

 

When investing in already established businesses with SYE, a simple change in mindset is required. We’re not on the lookout for the next groundbreaking idea or unicorn. Instead, we’re in search of what’s already working.

 

If there was a 90% chance of your plane crashing, would you ever choose to take a flight? Absolutely not.

Thus, adopting a positive mindset shift towards investing in established businesses reduces the level of risk involved. Statistics have shown that survival rates tend to stabilize after the first few unstable years. Source: SBA

 

Wick has first-hand experience of business acquisitions, having been both a buyer and seller in a business transaction. He understands the unique needs of investors looking to expand their portfolios and the limited availability of reliable resources (and risk), available to assist them. For a better understanding of the needs of business sellers, please refer to our article “Top Four Reasons Sellers Choose Say Yes! Enterprises”. The development of SYE was motivated by the need for consistent returns and low-risk investment options. 

 

SYE’s first acquisition was a popular e-commerce store Wick purchased in 2018. After increasing the company’s valuation by a remarkable 47.78%, SYE proceeded to re-sell it to another investor for a substantial profit.

 

The main focus of the acquisition process was on the optimization staff, by tripling the staff, boosting revenues by 32.43%, and growing the company’s profitability by 18.18%.  In under 11 months, the process of growing and selling the store was completed.

 

Whether your interest lies in “flipping” businesses or acquiring them to “buy and hold”, investors can work/partner with SYE to enjoy similar groundbreaking success.

Top 4 Reasons investors say Yes

Listed below are the top four reasons investors choose Say Yes! Enterprises.

1. We Aim To Understand The Needs Of The Seller. 

The most promising acquisition deal is bound to fail if there are communication issues or a lack of mutual respect. This is why Wick takes into consideration the unique needs of the seller when structuring deals. That way, the terms of the deals will benefit all parties involved.

 

Wick emphasizes that “The sale of a business often arises from special circumstances. Where I can provide more value compared to traditional buyers is in my profound understanding of the seller’s perspective. Sellers have needs. If a buyer fails to address those needs, they’re likely to either lose the deal or have an unpleasant transaction.”

 

Investors will only ever make returns on deals that reach the closing stage. In SYE’s first-ever acquisition in 2018, despite offering less money than other potential investors for the eCommerce acquisition, the seller still opted for SYE. Why?

 

Wick explains that “Most sellers aren’t just seeking the most money: they’re seeking the most certainty and trust of who they’ll be working with.”

 

It is important to have a proper understanding of this to effectively manage the human aspect of an acquisition, as it can determine the success or failure of the deal.  SYE follows a three-phase process for closing deals, which includes discovery, valuation, and offer acceptance.

Aside from understanding the needs of the seller, it is equally important to understand the seller’s attachment to their company’s customers.

 

As a skilled marketer and a serial entrepreneur, wick has learned a lot of valuable lessons over the years.

 

He has learned that going the extra mile for every customer can yield significant benefits. This is why, with his first acquisition, he promptly expanded customer support options, by allowing customers to contact the company’s support staff by phone, email, or text, effectively doubling the customer support options. This, in addition to customer satisfaction surveys and rewards for repeat customers, resulted in increased profitability.

 

Beyond understanding the sellers’s unique needs and their attachment to the company customer, it is also crucial to understand the brand’s significance to the seller. Sellers often want something they can take pride in, and they will choose the investor with the most potential to advance their brand.

 

One of the strategies Wick used to improve the brand value of the eCommerce store was by giving a face to the brand through the use of a cartoon character named Tracy. People tend to trust people, even if those individuals are simply cartoons or fictional characters. Proven examples of this technique are the clown in McDonald’s, and the gecko in Geico.

 

The above reasons represent just a fraction of the changes implemented to take an existing business from ” merely good” to “Great!”.

Accurate company valuation

2. Accurate Company Valuation and Investment Opportunity.

Making an Inaccurate valuation of a company can result in difficulty in getting a strong return on investment. Just as with purchasing a house, investing in a company demands a thoughtful and strategic approach when presenting your acquisition offer.

 

SYE determines valuations based on the assessment of EBITDA or SDE by using industry-specific multiples. These fair valuations consider industry data, concrete numbers, and company business performance. In addition to the financial performance indicator, SYE also places a monetary value on ‘intangibles.’

 

Some assets do not have representation in a company’s profit and loss statement, yet Wick excels in identifying these intangible valuables. For instance, a large customer list and social media following that are valuable for future marketing efforts significantly increased the valuation of his first e-commerce acquisition.

 

Aside from guarding against the overvaluation of companies, investors must exercise caution when presenting offers to sellers

 

If a buyer presents an offer that is too low, he is at risk of offending the business seller, potentially damaging the relationship, and losing the deal. Therefore, one of the most crucial factors in any acquisition is offering a fair offer that will benefit both the buyer and the seller.

 

The valuation phase in the acquisition process covers several important areas, including but not limited to revenue sources, financial performance, the ability to scale, financial performance, and return customer rate.

 

Sellers will often overvalue their businesses due to certain reasons like, emotional attachment, sunk costs, and hard work. Nevertheless, it is essential to establish a fair value that benefits both parties to ensure that the return on investment can be proven.

Optimizing resale value and exit planning

3. Optimizing Resale Value and Exit Planning.

There are two possible methods to make money from acquiring a company. An investor can opt for the “buy and hold” strategy, where they collect the profits from an already established and thriving business. Investors can also make a profit through “business flipping” by taking ownership of a company, optimizing its operation, and subsequently reselling it for a higher valuation.

 

It is important to have a  basic understanding of your company’s resale value, regardless of whether you opt for the “buy and hold” or “business flipping” strategy. Statistics have revealed that 80% of businesses listed for sale do not find buyers often due to their inability to create a proper exit plan.

 

For many businesses, revenue diversification holds one of the most significant importance in determining the valuation of a company. For instance, consider the 2018 eCommerce acquisition, when the company was acquired.  A staggering 90% of the total revenue was from Facebook ads. Although this strategy was yielding impressive results, it was highly dependent on volatile traffic. If external factors make Facebook ads less effective, the company would lose its sole source of traffic.

 

To address this vulnerability, priority was placed on traffic diversification. When the e-commerce company was sold, more than four new traffic sources had been introduced to diversify the company’s revenue stream. One notable addition was Google advertising.

 

For five months, Wick invested extensively in Google Pay Per Click (PPC) keywords. Working with the SYE Google marketing team, they developed, created, and tested lists of keywords to identify the most easily monetizable traffic. It is worth emphasizing that these tests were conducted to understand the long-term strategy. Even when Google became the 2nd largest traffic source in the company, during one month, at the expense of a temporary dip in profitability, Wick was willing to invest a substantial five-figure sum in Google keywords.

 

With this long-term strategy in mind, this process produced a list of keywords and monetization techniques for the company backed up by evidence. In addition to the new source of traffic, this list of keywords also contributed to the growth of the company’s valuation. It became an asset for the next owner, alongside the newly generated revenue.

Optimizing financial gates and investment returns

4. Optimizing Financial Gates and Investment Returns

SYE places priority on the numbers that will bring true returns for investors. Many business owners may be excited about revenue, yet profit stands out as an important indicator to observe.  It’s worth noting that revenue is merely a metric, whereas profit persists even when expenses diminish revenue.

 

SYE always take its time to conduct a thorough examination of the business financial records for the past three years. In a pivotal year for their initial eCommerce acquisition,  the business generated $658,000 in revenue, but profits remained low at a mere 6.4% for the entire year, as observed in the historical financial data analyzed.

 

A more detailed examination of the data unveiled a recurring pattern.  Profits consistently reached their annual peak in the holiday months of November and December,  while the business consistently experienced losses during the slower months of January and February. This pattern explained the low-profit rates, but it also revealed an untapped opportunity to increase profits.

 

Under the management of SYE, the e-commerce store made profit in January and February for the first time, as compared to the previous three years of ownership, because of the optimization methods used.

 

Aside from optimizing the cyclical nature of the eCommerce store and diversifying traffic and monetization methods, SYE also optimized the customer journey.

 

An increase in profit begins with a proper understanding of the demographics of your company’s customers, which will in turn help you understand the customer’s journey. Majority of the customers in this case were women, but a detailed analysis of the customer journey revealed that men were also purchasing gifts. By paying more attention to the customer journey, the company was able to successfully tap into new markets by broadening its customer demographics.

 

Though various performance metrics improved as a result of these optimizations, one of the primary indicators of acquisition growth is the change in average order value. This value increased from $27.67 to $36.59, marking a substantial 32.23% growth.

 

While there is a more detailed analysis of this eCommerce acquisition in an expanded case study, here is a quick review of the key metrics discussed thus far:

Over a period of 11 months, Say Yes! Enterprises achieved the following:

●        Raised profits by 18.18%

●        Boosted revenues by 32.43%

●        increased the average order value by 32.23% and

●        Achieve a 47.78% increase in company valuation with a successful sale.

Business Progress

Investors who partner with SYE get access to proven business expertise. This ensures consistent and predictable return on investments in existing, thriving, and low-risk businesses.

Want to learn more about investing with Say Yes! Enterprises? or Interested in investing with Say Yes! Enterprises?  Please contact the SYE team at inbox@sayyesenterprises.com.

Final Note On Investor’s Success

“Why would you start a company from zero? Why not acquire something? You’re going to spend the money anyway. If you’re going to create a new eCommerce store, you’re going to need a budget of $50,000-$200,000 minimum in the first year. Go spend your money on a store that’s already working,” Christopher Wick.

 

 

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Akbosh Investment Group is an investment management company that acquires, scales, and sells companies that benefit all stakeholders at large.

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