Ethical Profits in Crisis and Acquisition Mastery with Roland

29 Mar 2024 · 23 min

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Podcast Summary: Business Lunch - Ethical Profits in Crisis and Acquisition Mastery with Roland

Episode Overview In this episode of Business Lunch, host Roland Frasier explores how to leverage economic downturns for ethical profits through business acquisitions. He shares insights from his extensive experience in acquiring businesses with little to no money out of pocket, delving into concepts such as leveraged buyouts, real estate acquisitions, and the potential opportunities that arise during crises.

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Key Highlights

  • Leveraged Buyouts: Frasier describes the concept of acquiring companies using their own assets as collateral to finance the purchase, allowing individuals to acquire businesses without upfront capital.
  • Crisis as Opportunity: He emphasizes that every crisis presents a duality of devastation and opportunity, encouraging listeners to adopt a mindset that sees potential in challenging circumstances.
  • Skill Development: The goal is to impart a skill that listeners can leverage globally, enabling them to create value from virtually nothing.

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Timestamps

  • 00:00 - Introduction to Acquisitions
  • 00:22 - Leveraged Buyouts Unveiled
  • 05:00 - Real Estate & Business Fusion
  • 06:32 - Opportunities in Downturns
  • 10:00 - 40-Year Journey Overview
  • 13:34 - Zero-Cost Acquisitions
  • 15:00 - Portfolio Diversity
  • 18:22 - Universal Potential
  • 20:45 - Future Deal Connections
  • 23:58 - Roland's Ongoing Ventures

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Detailed Insights

  1. Understanding Leveraged Buyouts
  2. A leveraged buyout (LBO) allows investors to acquire a company by securing loans against the company's own assets.
  3. This strategy can lead to acquiring valuable companies without substantial financial investment.
  1. Crisis and Opportunities
  2. Frasier notes that economic downturns often lead to unique opportunities for savvy investors who can recognize and capitalize on distressed assets.
  3. Historical context: The podcast references past economic downturns, illustrating how they have led to profitable acquisitions.
  1. The Journey of Acquisitions
  2. Frasier shares personal anecdotes from his 40-year journey in acquisitions, beginning with his experiences in the 1980s, including his first leverage buyout.
  3. He highlights how he has successfully navigated various economic cycles and consistently found opportunities to acquire businesses.
  1. Creating Value
  2. The discussion includes methods for turning around struggling businesses and enhancing their value through strategic tweaks and operational improvements.
  3. He stresses that understanding how to optimize businesses is crucial for maximizing profits.
  1. Diverse Portfolio
  2. The episode highlights the importance of diversifying investment portfolios across various industries to mitigate risks and maximize returns.
  3. Frasier shares specific examples of industries where he has successfully built seven-figure businesses.

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Conclusion Frasier’s central message emphasizes the potential for ethical profits amidst crises, urging listeners to adopt a proactive approach toward business acquisitions. By understanding how to leverage both financial and operational strategies, aspiring entrepreneurs can create significant value without traditional financial constraints.

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Additional Resources

  • 7 Steps to Scalable Workbook
  • Free Book: "Zero Down"
  • Connect with Roland: [Roland Frasier's Website](https://msha.ke/rolandfrasier/)

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Call to Action Listeners are encouraged to reach out, ask questions, and connect with Frasier across various social media platforms for ongoing support and networking opportunities.

Text: "I'm in" to 334-458-9034 for more information on acquiring businesses and joining the Epic Deal program.

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Transcript

Automatic transcript. May contain errors.

0:00no money down real estate deal and sitting at the closing table and you just slide out as I see this now when people go through the Epic program on acquiring businesses and they've acquired their first business. And you get this smile that's like, I just can't believe that you can do this. And it's a goofy smile that I see on everybody that does their first deal. I still remember that from the first time that I was able to do it with a piece of real estate. So using the combination of what I found about the possibility of acquiring real estate with no money down, And then the actuality of these Wall Street firms that are doing these things called leverage buyouts, acquiring companies, using the company's assets to pay for themselves.

0:41I was like, this is something that is kind of magical. And if you squish those two things together, if you smash the no money down real estate concept with the leverage buyout concept, that's really the genesis of my journey into this world.

1:04So how did I get into this? Just so you have a little bit of background on who you're talking to or who's trying to share this stuff with you, I think it's good to have a little bit of information on kind of how did I get involved in this? And what is my journey in this ethical profits in crisis world, in this acquisition of businesses environment? What is what is that been that that causes me to be able to have some knowledge to share with you? So, well, I'm glad that you ask. I've had really five major what I would call epic opportunities, these ethical profits in crisis. And the pictures that you see on the slide is kind of me over the years from from high school all the way up to to interviews with Richard Branson, Sir Richard Branson and and all the steps along the way.

1:54And what I did was basically my first real understanding and encounters with this world of acquiring businesses happened back in the 1980s. So in 1981 and 1982, I had the good fortune to be introduced to some people in New York at some securities firms. I had my securities license to basically raise money and sell investments. and I was able to learn a lot about something that was very popular in the 1980s called the leverage buyout. Now that's really important because I was really blessed to have kind of come into this world about that time, right? And I'm in the 17, 18 years old around that time.

2:42Well, what was happening was you were hearing everywhere that these business, these big business deals were happening and companies were able to buy other companies using the assets of the companies that they were buying, right? That's called a leverage buyout. A leverage buyout basically is when you go out and you find a company that you want to buy and you see that there is enough equity and value there to be able to, and it might be in the form of just the valuation of the company, the stock of the company, it could be the assets of the company, could be intellectual property, could be unrealized opportunities.

3:22But you see that existing in that company, you have the ability to borrow enough cash to pay for the company using its assets as collateral, right? That's the heart and soul of the, of the leveraged buyout. So when, when I was watching this happening, I was like, my gosh, you mean like these people are buying these companies with no money. That's lots of cash changing hands, but there's no money that's really coming out of the pockets of the people who are buying. So what's really cool about that, I thought, was you mean that you can buy billion dollar companies without actually having to have the billions of dollars because if you've got the right connections on Wall Street, people will loan you the money.

4:11And it's not being loaned really to you as much as it's being loaned to the, based on the value of this company. Well, that was amazing to me. And I think that it, that it really framed the concept of the possibility of the no money out of pocket deal for me. And so, um, I had also had experience as a real estate agent, seeing that it was possible to acquire business, excuse me, to acquire real estate with no money down. And if any of you have ever done a deal where you acquire real estate with no money down, it's kind of life-changing. You sit at the table and the person is signing the deed to the property over to you, the title to the property over to you, and they hand it to you.

4:57And now you own this property and you paid no money for it. You now own the equity in the property. And maybe usually there's a loan on the property and they're still on the loan. You're not on the loan. You didn't get a loan. You just now have acquired this property. And I've got to give a shout out to Robert Allen, who wrote a book called Nothing Down. My dad shared that book with me when I was a kid. And I was like, my gosh, that is amazing that you can do that. And then I did my first no money down real estate deal and sitting at the closing table and you just slide out. I see this now when people go through the Epic program on acquiring businesses and they've acquired their first business and you get this smile that's like, I just can't believe that you can do this.

5:41And it's a goofy smile that I see on everybody that does their first deal. I still remember that from the first time that I was able to do it with a piece of real estate. So using the combination of what I found about the possibility of acquiring real estate with no money down, And then the actuality of these Wall Street firms that are doing these things called leverage buyouts, acquiring companies, using the company's assets to pay for themselves. I was like, this is something that is kind of magical. And if you squish those two things together, if you smash the no money down real estate concept with the leverage buyout concept, that's really the genesis of my journey into this world where you can acquire companies with no money out of pocket.

6:29So seeing those two things and having that experience, my first leverage buyout deal I was involved with was with one of those New York firms. And we acquired a company that was a manufacturing company. And that was done using a leverage buyout. And so that was like, okay, that's really, really cool. Now, at this point, I had a leverage buyout and I had no money down real estate in my pocket. And what I found was that the great, great, great opportunities always exist. And I'll explain to you why they always exist when we get a little bit farther in. One of the reasons is that as there are depressions in the economy, and there are mild and severe depressions in the economy constantly.

7:19I think in the last hundred years in the United States alone, we've had almost 50 recessions. So I figure that averages like one every two years. But there are also depressions and opportunities within each of the spans between those periods. So in the 90s, there was another opportunity where I was able to do workouts in the retail space. And then as we moved into 2000, that was like turnarounds, workouts and turnarounds for companies that were in trouble. As I went into the recession that happened around the dot-com bust in 2000 and 2001, I had the opportunity to do reorganizations of these dot-com companies.

8:02And that was back, if anybody remembers, there was this big thing called Y2K and the whole world's going to end. And that panic created a lot of hype that it boosted a whole bunch of companies that thought all they had to do was get eyeballs at any cost and then you'll make money. no real logical leap between getting the eyeballs and making the money but they just figured if they if they had them it would work out turned out it didn't and so there was an opportunity there for me to do a lot of reorganizations for companies when we got into the great recession here in the United States that was the subprime lending crisis that happened in 2007 8 and 9 I had the opportunity to go back to my roots of real estate and do roll-ups and so acquire several properties and bundle them together.

8:47And then as we move into 22 and beyond, I have found that between things that happened with the coronavirus pandemic in 2020, 21, moving into 22, things that were going on in the world, crises that we're having with people invading other countries and all of the other just general things, inflation going higher, there's always opportunity. There's always opportunity in crisis, right? You can go on one side and you have the opportunity to go on the other side and you've got devastation. So, um, I, I think the important thing to take away is that experiencing no money down, real estate, leverage buyouts, then workout, seeing how I could actually go into a company and kind of turn things around and make a company that was worth x actually be worth 5x by figuring out how to manipulate some of the things in the company and and tweak a few things kind of like dial in the combination uh somebody used the analogy of that that when you're if you think about an old radio uh not a digital one but you can do it on digital too that if you're just adjusting the frequency up a little tiny bit it gets kind of kind of hard to understand what they're saying and then as you dial it in it gets crystal clear.

10:10That's really what was happening to me on this journey. So now workouts, I'm learning on how can I take a company and add a whole bunch of value reorganization, same thing. When there's some things that just aren't perfect, how can I tweak these things? Then roll-ups was a whole new concept where you could take several companies in one industry or one vertical, um, or, or even just several companies to bundle together in a package called a portfolio, then those companies could be worth significantly more because you're pooling them and you're able to get their profits and their sales up over certain levels where you get bigger players that are interested in them.

10:52That was a really cool concept too. And then bringing all of these things together really is what created Epic. So just, I think it's helpful to see that, that like, this was something that, that was basically 40 years in the making from the eighties to the 2020s, um, looking at all these different things. And I've been acquiring businesses throughout that time. Um, I am acquiring more and more and more at this point. And that's why I want to share this with you guys. My evil plan in doing all this is that I hope that number one, you will get great value from this. And the value will actually turn into a return on your investment in this program by being able to go out and acquire businesses.

11:36I want to give you a skill that you can take anywhere in the world for the rest of your life and be able to create value out of thin air. That's what this is. It's as alchemy as you ever get. But my second thing of my evil plan is that I would like to find the opportunity for us to do some deals together. So you might decide you just want to go out and do all of these deals yourself. But really what I'm hopeful for is that you will find the opportunity to find deals. And then perhaps we can work on some of them together. So that's kind of the evil plan and the journey overview here. Now, what I would love for you to do is understand that this is something that I have used in several different industries to be able to create great businesses across a wide spectrum of industries and in terms of revenue.

12:32So if you look at this list of deals that I've done, you'll see that there are, let's see, is it 27? I think one, two, three, four, five, six, seven, eight. So 24 companies that are listed on here, not companies, but categories of companies. So 24 different industries. And that in each of these industries, I've been able to build a seven figure business. You'll see that I believe there are 18 of them that have a single star. Those are all industries like e-learning and commercial real estate, sporting goods, mastermind groups, where I've been able to create a business that is a$10 million or more sales business.

13:13And there will be four businesses on here, I believe, that have two stars, which are businesses that have grown in industries to$100 million or more. And then one with three stars, which was in the real estate space, which is over a billion dollars, actually approaching about four billion dollars in sales. So I am living what I am doing. I do this every day. It's not something that I learned back in the 80s and the whole world has changed 17 times. And I'm out here saying, you know, back in my day, you could do this. I'm actually saying, look, I do this stuff every day. And so I am on it. I know what's going on.

13:51I know my stuff and it actually works. So I just kind of wanted to see it too, that like this works in every country. You don't need any credit to do this because it's no money out of pocket and it works in any industry. So if you can do this anywhere in the world with any industry in the world and you don't need any money to do it and you don't need any personal credit to do it, then what's stopping you? And the answer can only be that you don't have the confidence or you don't have the knowledge. I am going to do my best to give you the confidence that you can do these deals by showing you a whole bunch of deals that I have done and people that I have worked with have done.

14:31And then I am going to give you all of the knowledge that you need to be able to do this stuff too. So that is very exciting. Just to kind of go into a little bit more specificity too, I have acquired interests in 38 businesses currently that have between 3 million and$4 billion, dollars, just under$4 billion in sales volume for no money out of pocket. That includes a company called Digital Marketer. Digitalmarketer.com is where it is. If you want to check it out, we are an e-learning company providing training to people who want to learn how to market online. Another company that's a SaaS, a software as a service is Event, A-E-V-E-N-T.

15:13Event is a webinar platform that helps people deliver content and make sales of the content or offers from the content over Zoom and GoToWebinar. Fully Accountable is an accounting company that provides, that's a virtual accounting service primarily focused on serving digital businesses. And we provide back office accounting for those people, accounting reports, financial statements, that sort of stuff. Recess is a software as a service that helps companies measure their employee satisfaction and kind of take the temperature of how people are doing in the business. TNC is Traffic and Conversion Summit.

15:52That is the largest digital marketing event in North America. It's a company we exited partially to a bigger company owned by Blackstone called Clarion a couple of years ago. PCS is Prime Corporate Services. Prime Corporate Services creates between 2 ,500 and 3 ,500 new entities per month for people that want to set up corporations or LLCs. We also prepare tax returns for those businesses and help them build business credit and do estate planning for the entrepreneurs that own them. WeGoDoggo is a company that is a pet product manufacturer. So we manufacture all kinds of pet products. Big Block Realty is a residential real estate brokerage.

16:34Our customers are not necessarily the people that are buying and selling houses in that business. our customers are the real estate agents. We have, I think about 1 ,100 of those currently. Real Estate Worldwide is a data company that harvests information about real estate sales all over the country in the United States and then resells them to everybody from title insurance companies to real estate investors. Everbowl is a company that does acai bowls and healthy restaurant services and products through, I think we're at 135 restaurants right now. Guitar Mastery Method is an online digital instruction company that teaches guitar lessons.

17:18War Room is a company that provides masterminds for business owners who are doing more than a million dollars a year in sales. And it's basically, they get together several times a year and share what's going on. This is just a handful of the types of companies that I have acquired with no money out of pocket. And I share that with you, not to say, Ooh, look at me, look at all this stuff I've done. I want you to see that whatever you're thinking that you want to acquire, whatever industry that you want to work in, this applies to you. There's a good chance between the 24 industries that I gave you on the last slide and these specific companies that I'm sharing with you here, that you'll find something that falls into the category of what you're looking to acquire.

18:02But even if it doesn't, I want you to know that there's way more of these things that I've done than I can list here. And goodness knows I've probably forgotten more than I would care to remember that I've forgotten because I'm buying and selling on a regular basis. What I do want you to know is that no matter what your industry, no matter where you are in the world, no matter what your financial position is currently, this is something that you can do. And this is something that I have helped thousands of other people learn how to do as well. Now, if you would like to connect with me, because as I mentioned, my evil plan, one of them, is that I would love to be able to do deals with folks who have gone through this program.

18:41And so if you'd like to connect with me, you can just open your phone right now and click on your camera and you see this QR code that's on your screen. You can point your camera at that and a link will pop up. If you click on that link, it will open my LinkedIn profile and you'll be able to request a connection with me. So, and I will approve the connection. Okay. Just let me know that you're in my Epic training program and I will approve the connection and then we'll be connected on LinkedIn. So that way you can kind of stay connected to me and I can stay connected with you. And also, um, if you want to connect even more deeply, I do have channels on YouTube.

19:21I do have channels on TikTok. I do have channels on Instagram or accounts and Facebook. And the best way to find me is simply just do whatever the name of the platform is and then forward slash Roland Frazier. So Instagram.com forward slash R-O-L-A-N-D-F-R-A-S-I-E-R. You'll find me there. I do monitor all of the messages on all of those platforms. You'll also see if you're checking me out to see that I do in fact do what I say, you'll see that it lists me as an investor there. So definitely check those out. Follow me, hang out with me there on Twitter as well, and get your profiles up and enjoy this journey that you're about to take as I have and know that you're in really good hands because not only have I done a ton of these and not only have I taught a lot of people how to do this, but it's something that I'm still doing as my primary thing that I do.

20:46I'll see you next time. deal, structuring the financing or negotiating with sellers. You are not alone. Too many people waste months, even years, just thinking about acquiring a business while the real opportunities pass them by. The Epic Deal Fast Track is not another course. It's actually an implementation program and it's designed to get you from the idea to the acquisition in just 16 weeks or less. We work with you one-on-one to help you find, fund, and close your first or next deal. And once you do, we're going to plug you into our elite Epic Board community so that you can keep scaling through acquisitions.

21:27We install three powerful systems in your business. The first is the deal flow engine. So you always have high quality off-market deals coming to you. Number two, we give you our offer and funding system so that you can structure offers that get accepted and fund them creatively many times with no money out of your own pocket. And number three, our closing and integration system so that you don't just buy a business, you actually successfully run and scale it once you have acquired it. Plus, you'll have direct one-on-one support from an Epic Deal advisor every step of the way. And that's people that have actually come up through the system and done these deals themselves.

22:03That's the only way to become an Epic Deal advisor. And if you're serious about acquiring a business this year, don't just sit on the sidelines. Just text I'm in to 334-458-9034 and we'll get you in. So text I'm in to 334-458-9034. We'll get you in. No fluff, no wasted time, just real deal making from people that are actually out there doing deals right now. I'll see you there.

From the publisher

Welcome to a new episode of Business Lunch. In this episode, I discuss leveraging economic downturns to uncover ethical profits through business acquisitions. I’ll also share my journey acquiring businesses with little to no money out of pocket. These insights will show you about leveraged buyouts, real estate ventures, and digital opportunities, inspiring you to see crisis as an opportunity. 

Highlights:


"You mean that you can buy billion-dollar companies without actually having to have the billions of dollars...it's as alchemy as you ever get."


"There's always opportunity in crisis; you can go on one side and you have the opportunity, go on the other side and you've got devastation."


"I want to give you a skill that you can take anywhere in the world for the rest of your life and be able to create value out of thin air."


Timestamps:

00:00 - Introduction to Acquisitions

00:22 - Leveraged Buyouts Unveiled

05:00* - Real Estate & Business Fusion

06:32 - Opportunities in Downturns

10:00 - 40-Year Journey Overview

13:34 - Zero-Cost Acquisitions

15:00 - Portfolio Diversity

18:22 - Universal Potential

20:45 - Future Deal Connections

23:58 - Roland's Ongoing Ventures


CONNECT 

• Ask Roland a question HERE.

RESOURCES:

• 7 Steps to Scalable workbook

 • Get my book, Zero Down, FREE

To learn more about Roland Frasier 👉  https://msha.ke/rolandfrasier/

Connect with me on social:

🎵 TikTok: 

/ rolandfrasier  

 📸  Instagram: 

/ rolandfrasier  

📱 Facebook:

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