Alexandre Bonvin, CEO of Audacia Group, shared his journey of acquiring and consolidating businesses. He began by acquiring a business with great potential but lacking capital. Bonvin explored various options, opting for a seller-financing agreement, borrowing equity, and negotiating a bank loan using shares as collateral. This leveraged buyout required him to pay back the loan with interest, using the company’s cash flow to acquire more businesses.
Bonvin highlighted different paths to acquiring businesses, such as leveraged buyouts, direct acquisitions, or creating investment holding companies. He emphasized the importance of starting small with profitable businesses to use profits for further acquisitions or debt repayment. This approach allows entrepreneurs to build slowly and strategically, depending on factors like capital, risk tolerance, and long-term goals.
In his experience as a serial entrepreneur, Bonvin stressed the importance of thoroughly analyzing potential acquisitions. He advised focusing on business niches aligned with expertise and interests, prioritizing sustainability and profitability. Understanding the reasons for the sale and conducting industry research are crucial steps in making informed decisions and avoiding trendy but short-lived ventures.
Location choice is another significant consideration for entrepreneurs. While major cities offer top talent and resources, smaller markets provide unique opportunities at lower costs. Bonvin recommended starting in familiar areas with promising business prospects to leverage local networks and knowledge. He based his investment holding company in Switzerland, leveraging existing connections and teams in a smaller city.
Talent acquisition and retention play a crucial role in business success. Entrepreneurs must prioritize attracting and retaining top talent, considering various hiring options like remote or hybrid teams. Investing in HR support early on helps in managing compliance, legal obligations, and creating a healthy work environment. As businesses grow, transitioning to an in-house HR department ensures continued support for employees.
Financial and legal support are essential aspects of any acquisition. Entrepreneurs should work with experienced tax advisors, accountants, and lawyers to structure deals tax-efficiently and comply with local regulations. Seeking expert guidance, especially for international acquisitions, can save time and money in the long run. Starting small, evaluating key factors, and growing gradually improve the chances of success in acquiring businesses.
