In this episode featuring Bakari Akil, we explore the remarkable journey of an entrepreneur who discovered the transformative power of Entrepreneurship Through Acquisition (EtA) using Leveraged Buyouts (LBOs) through a YouTube video, leading him to acquire a handbag company doing $30M in revenue, even though he started with only $1,000 in his bank account.
Bakari's story, from humble beginnings to successful acquisitions, highlights the importance of maintaining a consistent deal flow, building trust, and the convergence of wealth and societal impact. His journey serves as an inspirational roadmap for aspiring entrepreneurs, demonstrating how strategic knowledge and unwavering determination can pave the way for success in the world of business acquisitions.
1. The Power of Leveraged Buyouts (LBOs) for Acquisition Entrepreneurs: Bakari Akil's journey into the world of acquisitions showcases the potential of LBOs as a path to entrepreneurship. He discovered the concept of LBOs through a YouTube video and pursued it through education and networking. This approach allows individuals like Bakari to acquire existing, well-run businesses without immediately making drastic changes (like the $30M handbag company he bought), offering a clear and concise path to business ownership and success.
2. Accessing Capital and Building Trust: Bakari's story highlights the importance of trust and transparency in the world of business acquisitions. Despite having only $1,000 in his checking account, Bakari recognized the potential for acquiring profitable businesses and attracting investors who trust his leadership. He established a significant network, the "Alternative Investments Club of New York," to connect with potential investors. This demonstrates the significance of trust in securing capital for acquisitions and growing one's venture.
3. Changing Perceptions of Wealth and Impact: Bakari's evolving perception of wealth and its role in making a positive impact on society is another key takeaway. He initially viewed wealth differently but realized the power of capital in effecting change. The interview underscores the idea that individuals can generate wealth while simultaneously making a positive impact, challenging the notion that one must choose between being a capitalist or an activist.
As Director of Corporate Development for TriMech Solutions, Bakari Akil buys companies- sourcing and executing lower middle-market engineering software acquisitions. Bakari is backed by Sentinel Capital Partners & The Halifax Group. He acquires companies for hispersonal family office. In 2023, hisportfolio grew to include a $30M burlap bag manufacturing company he acquired where he sits on the board of directors.
08:57 - “I was aware that there were big pools of capital but I didn’t know how to get access to that.” - Bakari Akil
15:27 - “If you're a smart person, you come in, you take over a business like that and you don't make any major changes. You just let it rock.” - Bakari Akil
16:08 - “I just needed to find a good business and a good growing industry.” - Bakari Akil
40:45 - “Depending on the type of job you get, now you've delayed poverty, right?” - Bakari Akil
50:22 - “The business is generating a profit level of somewhere between like $100 and $400,000 in annual profits. It'll generally trade for something like two or three times that number, right?” - Bakari Akil
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