Buy Then Build - by Walker Deibel

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ADVANCED PRAISE FOR BUY THEN BUILD “Looking back 20 years from now, acquisition entrepreneurship will be as normal as going to law school today. In the meantime, it’s a huge opportunity to hop on the train before the secret gets out and Walker explains exactly how to do that.” —TAYLOR PEARSON, bestselling author of The End of Jobs “Walker is playing it smart. He sees opportunities others don’t.” —CLIFF HOLEKAMP, Director of Entrepreneurship, Washington University in St. Louis, and cofounder, Cultivation Capital “Buy Then Build clearly outlines the framework for capturing value through acquisitions.” —MARK DAOUST, founder, Quiet Light Brokerage “Buy Then Build is a practical guide to cash flow investing, business, or improving financial IQ. I recommend this book to all of our clients.” —GARRETT GUNDERSON, NYT Bestselling Author of Killing Sacred Cows and Founder, Wealth Factory “Buy Then Build has already been called superb, enlightening, and inspirational. I can’t say anything better!” —TOM WEST, cofounder, Business Brokerage Press and IBBA

Copyright © 2018 Walker Deibel All rights reserved. BUY THEN BUILD How Acquisition Entrepreneurs Outsmart the Startup Game ISBN 978-1-5445-0114-7

MASTER ACQUISITION ENTREPRENEURSHIP Go to BUYTHENBUILD.COM to get bonus materials, access additional resources, watch expert interviews, join the private community, and more.

PART 1 OPPORTUNITY 1 Chapter 1 Don’t Start a Business 2 Chapter 2 Engineering Wealth 20 PART 2 EVALUATION 38 Chapter 3 The CEO Mindset 39 Chapter 4 Defining the Target 59 Chapter 5 The Search 87 PART 3 ANALYSIS 105 Chapter 6 Deal Making 106 Chapter 7 Buy for the Future, Pay for the Past 128 Chapter 8 The Sellers Journey 161 Chapter 9 Designing the Future 183 PART 4 EXECUTION 210 Chapter 10 Making an Offer 211 Chapter 11 The Acquistion Phase 237 Chapter 12 Transition 255 CONCLUSIONS Acquisition in the Entrepreneurship Economy 275 Bibliography 280 Acknowledgement 284 About The Author 289

FOREWORD BY CHAD TROUTWINE ONE BRISK SPRING MORNING IN 2011, I ARRIVED AT MY MALIBU beachfront office to find a film crew waiting to interview me. They explained that they were there to film a promotional video for Corley Printing, Walker Deibel’s very first buy-then-build success story. I had no memory of agreeing to do any such thing (and still don’t), but that occasionally happens to me. Whenever I agree to do something far into the future, I just say yes and imagine the day will never come. But this time, the day had come and it was today. As a person worthy of being the star of a micro-budget promotional video, I had a hundred more important things to do that morning. I would have weaseled out of the shoot (or at least changed into a more stylish outfit), but I truly loved Corley Printing and their dynamic young CEO, so with a broad a smile, I said, “Mic me up, fellas!” Just as most everyone under fifty years old was running from anything having to do with the printing industry, Walker had gone against the grain and actually acquired a book manufacturing company. I got a front row seat to watch as he made decisions that transformed the company, and quickly became a regional leader in digital book production—perhaps the only area that was growing under the changing printing landscape. Under Walker’s leadership, the company withstood the storm that hit the industry, became one of the largest 2 percent of printing companies in the United States, and experienced an exit. Walker is more than just an author, and Buy Then Build is more than just some academic exercise. This book is an insider’s look into a proven system, masterfully told by a veteran entrepreneur. Walker has already found success several times buying and building businesses. Just as the practice of entrepreneurship through acquisition is taking hold in business schools, Walker—if you’ll forgive the obvious pun—is not just talking the talk; he has already walked the walk.

HIDDEN IN PLAIN SIGHT Before I moved to California, I spent my childhood in suburban Kansa