#345: One Wild Ride: Lessons Learned from Buying 48 Businesses During the Pandemic with Jonathan Jay

Go big or go home, right!? That’s exactly what my guest today thought when the pandemic started and traditional business buyers disappeared from the scene of his industry and he had an opportunity to become the market maker.

Today my guest is Jonathan Jay. Jonathan has been an entrepreneur since dropping out of university at age 19. Now 50 years old, he has built businesses in publishing, digital marketing, adult education and coaching, as well as preschool education and has sold each of them. During the pandemic, he made 48 business acquisitions to create the fourth largest group in his sector in under three years.

Some of Jonathan’s deals were wildly successful, like the $4 million in revenue digital marketing company he bought for $1 and sold for $2 million six months later or the publishing company that changed his financial life forever. Other deals were not so easy, like the first company he bought (the publishing business) or the last roll up of 48 preschool daycares he bought during the pandemic.

What I love about my conversation with Jonathan is how genuine he is about telling his story and the real ups and downs he experienced along the way. Anyone who is responsible for payroll knows it’s not all rainbows and unicorns–cash flow matters. 

It’s becoming more common for thought leaders these days to preach how “easy it is to buy a company with no money down” or “roll up an industry because of how huge the opportunity is.” 

Talking vs. doing are two very different things. 

Jonathan shares with me the major ups and downs throughout his journey with no filter. I loved it, and I hope you do too!

// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast

What You Will Learn

• How–and when–during his journey Jonathan came to the realization that a business is a financial asset and not just a job.
• Why Jonathan bought a digital marketing firm for $1 and was able to sell it for millions within a year.
• How Jonathan turned the failing digital marketing firm into a highly profitable company in a very short period of time.
• What happened that allowed Jonathan to buy so many companies so fast.
• How Jonathan financed the acquisitions of 48 companies. 
• Why Jonathan ended up in the hospital during the roll up.
• How Jonathan took inventory about what mattered most to him in his life and how he recalibrated in order to get it. 
• Why Jonathan thinks it’s crucial to know exactly what you are good at when trying to scale a business.
• When and how to assess if it’s time to get out of a business (both from a leadership and ownership perspective).

// USE YOUR FINANCIALS TO CLARIFY A PATH TOWARDS A MORE VALUABLE BUSINESS: Intentional Growth Financial Assessment

Bio:

Jonathan Jay is one of the world’s leading trainers on buying and selling businesses, with a 20 year plus track record of high-performance companies and multi-million-pound exits.

Over the last 20 years, Jonathan has bought companies from private equity firms and sold companies to private equity firms – he has made trade deals and snapped up bust competitors and merged them with businesses already in his portfolio.

Jonathan is also the author of nine business books and presented shows for the BBC.

Interview Quotes:

14:35  - “The entrepreneurily-minded person is always saying, ‘Next year is going to be better.’ But next year isn’t always better.” - Jonathan Jay

15:00 - “It’s knowing when to get out.” - Jonathan Jay

16:13  - “The optimism of the entrepreneurial founder compared to the very conservative, very prudent, cautious approach of private equity is two completely different people.”  - Jonathan Jay

25:34  - “Well, it frees up your mond, doesn’t it. If you’re worrying about money and paying the bills, you’re thinking about today. You’re not thinking expansively. You’re not thinking about what’s possible.” - Jonathan Jay

34:00 - “We stopped doing things that were losing money.” - Jonathan Jay

38:47 - “I never recommend people buy a distressed business.” - Jonathan Jay

43:00 - “Everybody wanted to work from home.” - Jonathan Jay

57:42  - “And I thought, ‘You know what? This isn’t fun anymore,’ so I sold my shares of the business to my business partner.” - Jonathan Jay

1:01:25  - “There was never going to be a situation where the staff didn’t get paid. That was never going to happen.” - Jonathan Jay

1:06:24 - “You’ve got to clearly define what your goal is and what you’re prepared to do to get there.” - Jonathan Jay

Links and Resources:

Jonathan Jay (YouTube)

Intentional Growth™ Vision Board

Intentional Growth™ Online Training

Reach out to me if you have questions about the Intentional Growth™ Training or Fractional CFO services