Jeramiah Townsend – 5by5sales
It is my duty to honor God in all things: To customers by providing the highest level of customer service and convenience to our customers at competitive prices.
To staff by providing excellent and supportive employment with opportunities to grow while supporting their personal goals.
To family by investing copious amounts of time and resources in my wife and children, being a stalwart source for them to lean on at all times and on all occasions, providing constant direction and support for their independent success and happiness.
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1) Transformation of Character
2) What you should NEVER say during a negotiation
3) How to finesse a negotiation with 5 business owners (how to be the referee without kicking up dust)
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SHOW NOTES:
Today’s Audio MASTERCLASS:
Negotiating a Deal Between 5 Owners
00:00:59 – You’re not cut out to be in accounting
And one day, he says, Jeremiah, we need to do more marketing for our clients. So you’re not cut out to be an accountant. I know that. We all knew that my heart was, crumbling. And he goes, You’re not cut out to be an accounting. So why don’t we start a marketing company? We’ll create a spin-off company. You just have to decide whether you’re going to work for me or work for yourself. And I just wanted to work from it for him because it was such a joy working for him and working in this family-centered environment and having such a knowledgeable mentor over my shoulder.
00:08:14 – I was a gifted student
I was a gifted student. I tested into College when I was eleven years old, and I put off going to college until I was 15. So the story of Duke Houser for Sherlock Holmes. That was literally the story of my life. And so everything was very, very easy for me. And I gained immediate success, and it was on everything back in school, like everything. Everybody thought I would be somebody super special. And that’s why when I was 25, I dropped out of College several times already, and I’m praying, and I’m saying God, why am I not more successful?
00:12:27 – Some of these people were asking outrageous, outrageous multiples on their company
I just thought of something early on in my negotiations when I first started getting into companies. I can’t believe where it came from, of course. But I was a little bit arrogant, and, you know, I had to make sure to curb some of my language, communicating with customers or communicating with potential acquisitions because a lot of the acquisitions that I pursued, some of these people were asking outrageous, outrageous multiples on their company. And what I’ve discovered is that’s actually the norm. The norm is a lot of people want way more than their companies technically work.
00:17:24 – Let’s take a look at the numbers
So I always tell people, well, let’s take a look at the numbers. I remember one company I purchased, the starting price ended up being $2 million is what they were asking. And the purchase price ended up being just under a million dollars at the end of the day. And I’ve had several negotiations where I’ve gone through that one negotiation. They started off they wanted about 1.6 million, and I got them down to 900,000. And just using that approach, saying, okay, well, let’s take a look at the numbers and we’ll see where it goes.
00:28:29 – I want to continue their legacy.
And so I really want to make sure that they understand they’ve done a great job, and we’ll see where that goes. But I want to continue their legacy. I want to continue building from what they’ve done.
00:38:49 – There’s plenty of fish in the ocean.
There’s plenty of fish in the ocean. So in the last couple of weeks, I talked to a company in Ohio about buying them, a company in the Minneapolis, Minnesota area, one in the Texas area, one actually in the Arizona area. So I’ve done a lot of that. And sometimes it’s about Zoom or phone calls. And I really like to talk to people face to face. So I’ve gone into companies out of the blue and just say, hey, you got a really great company here. As long as I’m talking to the owner, you got a great company here.
00:49:04 – I just want profitable companies that I can automate
Now they’re going to be number one. I just want profitable companies that I can automate and usually to automate a business, you need to make at least $300,000. Well, two to 300,000 for the ownership and have a minimum of ten plus employees, and anything smaller than that, it gets to be really hard to automate the owners too much involved in it. So those are the first couple of hurdles. And right now I know I am very focused on acquiring sales and marketing companies or anything relating to sales and
00:50:29 – I know business
Awesome. And people said, how do I make money now? I know business. I’m actually good with business. I got into the art stuff just because I knew business and it happened to be for sale. And so one of the ways that artists make money or through prints and reproductions. So I looked at how do I get into printing? And I had a couple other things going on at the time. So I ended up starting reselling print services and nobody knew I was reselling it. But I resold fine art reproductions and stuff like
00:50:46 – Shoan
Yeah, one of the things you said that was in that silence, when you’re just being quiet and someone says, are you still there? And then you said, yes, I’m just really interested in what you have to say. That’s like really a heartfelt statement that makes the other person feel validated, that they’re heard and listened to the whole thing about like listening and hearing. It’s when you’re out camping and then you say, oh, did you hear that … let’s listen. That’s the difference.
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