Carl Allen is a famous entrepreneur, corporate dealmaker, and investor who has participated in over 330 transactions worth almost $48 billion.
Carl has analyzed thousands of businesses, both large and small, in 17 different countries throughout his nearly 30-year career, including technology, pharmaceuticals, transportation and logistics, engineering, consumer goods, manufacturing, aerospace, business services, retail, professional services, packaging, financing, and corporate clothing.
Alright, so Carl Allen doesn’t exactly fit into a nice category.
At the end of the day, buying and selling businesses is a… unique way to think about making money.
It’s certainly possible to make money with off-the-wall businesses like this, but unless you’re interested in taking years out of your life to experiment with an unproven business model, I would look elsewhere.
My #1 personal recommendation if we’re talking about starting a fully online business has got to be the Lead Generation & Ad Agency business models.
There are a handful of programs that teach you the ropes, but my #1 choice that combines both of those business models into one is the Digital Landlords program
But, if you’re hard-pressed to jump head-first into an off-the-wall business model, let’s continue to my full breakdown of Carl Allen!
His Early Careers
Carl built his reputation throughout 16 years on Wall Street. He has worked for companies such as Bank of America, Hewlett Packard, Forrester, and Gartner.
He worked with some of the biggest companies in the world to help them with investments, mergers, acquisitions, sales, and reorganizations. He also helped hundreds of business owners get equity and debt financing.
Carl Allen And Dealmaker Wealth Society
Carl Allen formed Dealmaker Wealth Society because he felt that starting a business from scratch was crazy. For him, helping new businesses is a full-time job that he takes very seriously.
According to Michael Gerber’s E-Myth Revisited, Carl Allen wished to use his admiringly specialized skill set to help others achieve their goals and dreams of self-employment without the long, hard, up-all-night slog that had a 96 percent failure rate in ten years.
Carl Allen now assists thousands of entrepreneurs worldwide purchasing existing and profitable small businesses.
What Is Dealmaker Wealth Society?
The purpose of Dealmaker Wealth Society is to give you hope that the life you’ve always wanted is within reach. And you’re just a few steps away from it.
With Dealmaker Wealth Society’s world-class online training and the support of a community of like-minded entrepreneurs, you may achieve the wealth, security, and freedom you’ve always dreamed of.
Dealmaker Wealth Society Courses
If you’ve always dreamed of starting your own business, Dealmaker Launchpad can help you get there.
In preparation for the task, this guide from editor Carl Allen can help you manage your own business with no money down.
Carl Allen offers his signature training courses and turnkey systems to guide you through the process of learning how to buy and sell businesses on your own.
Dealmaker CEO is unlike anything you’ve ever seen before! Now is the best time to start a new business or expand an existing one.
This training will help you take Launchpad to the next level. Carl’s step-by-step tutorial will show you how to buy a profitable business in 99 days or less using other people’s money.
By giving subscribers personal access to Carl and his committed dealmaking team, the Dealmaker Academy greatly accelerates your business acquisition journey and results.
This exclusive mentoring model includes weekly group coaching calls, annual in-person mastermind conferences, their “Red Light, Green Light” transaction review service, advanced deal-making training, and much more.
The Dealmaker Empire is for entrepreneurs who want to climb the corporate ladder and make a great impression!
This intensive coaching session on growing through acquisition is exactly what you need to double the profit, double the cash flow, and instantly multiply the client base of your six- or seven-figure business.
Buying Businesses With Other People’s Money
Carl Allen is a business buyer in the UK specializing in leveraged buyouts (LBO). He has been able to buy firms without spending any of his own money, thanks to a process he developed over 26 years.
In this episode, he covers how to locate deals, what to look for, and how to organize the businesses you buy so they aren’t totally dependent on you.
Doubts are running high in your mind.
People buy existing businesses all the time, but how often do you hear someone doing so without investing any of their own money? That sounds like a scam.
This is especially true for those struggling to make ends meet in their own businesses.
However, this is not a myth.
In fact, you’ll see things from a different perspective once you realize that starting a new business has two routes. Whether you create a fresh from scratch or buy an existing business, you’ll realize that you have two options.
Last but not least, it’s a no-brainer. Why?
You’ll be amazed at how fast you can achieve success. You’ll see that running a business is much easier than starting from scratch, and you won’t have to take on as much risk.
Do you want to learn more about buying a business right now?
Check out Carl Allen’s genius method.
Types Of Existing Business To Buy
According to Carl Allen, one of the quickest ways to fail in purchasing a business is to buy one that relies almost entirely on the owner’s presence.
It just isn’t going to work out this time around.
How do you avoid these? It’s really not that difficult.
One to five-million-dollar businesses is the best bet for a long-term business that will succeed.
You’ll encounter significant difficulties if the company’s owner earns less than $1 million. If you take them away, the empire will fall to pieces.
This is more common in physical stores than in online ones.
You’re competing with the bigwigs—trade buyers, competitors, and small private equity firms—if you’re making more than $5 million in revenue.
If you’re a business entrepreneur looking to grow your portfolio, one to five million dollar targets are your best bet.
Besides revenue, you’ll need to take into account the industry.
Don’t stray too far from where you’re supposed to be.
IT, engineering, manufacturing, and professional services are all viable options for an LBO, but real estate isn’t one.
Selecting A Business Owner Who Is Desperate To Sell At A Low Price
Finding the ideal business to buy isn’t enough. You should get to know the seller if you want a good deal.
The seller’s psychology might be a handy “cheat sheet” for achieving the best price.
You can use psychology to determine why someone sells their business to you.
Using psychology, you can meet the seller’s long-term goals when making a purchase. You want to make the seller happy, and psychology can help you do that.
What do you mean?
Focus on owners who are eager to exit their businesses and care deeply about the future of the company or business they have worked so hard to build.
Targeting an older demographic, such as the baby boomer business owner who has built a successful company with loyal clients and employees and is looking to leave a lasting legacy, makes more sense.
Dynamics Of LBO Deals: How Does A Leveraged Buyout Work?
The big reveal is finally here.
You can buy an entire company without putting up any of your own money.
This is how you do it:
A million dollars in revenue and a few hundred thousand dollars in free cash flow for Business X each year.
Free cash flow is a more useful indicator of a company’s true profitability than net income, so you’ll want to find out what it is. Free cash flow (FCF) is the difference between operating cash flow (OCF) and capital expenditures (CAPEX).
A few businesses sold for less than three times their cash flow last year.
Assume you’re paying $500,000 in cash for a company with a $1 million annual revenue. The final $300,000 can be paid in three equal installments of $100,000 each, with the first $100,000 due at closing and the second $100,000 over the following three years.
The following are some alternatives for raising capital for this venture:
- Debt can secure a two-hundred-thousand-dollar deposit (e.g., SBA loans and traditional bank loans) or collateral, such as inventory and receivables if the business operates in a brick-and-mortar location.
- The company’s cash flow would be used to pay off the remaining three hundred thousand dollar payments. A key benefit of an LBO is the ability to pay back a portion of the purchase price in the future.
There is no personal wealth here. Opportunities to make money are plentiful and everything works out as if by magic.
The Bottom Line
Is it feasible? Yes, but only if you target the right-sized company.
It takes hard work and planning, just like anything worthwhile.
Aside from purchasing the business, you must also consider the day-to-day operations. Carl Allen’s most successful deals have occurred when a substantial number two leader can step up to become the GM.
You’ll be okay on your way to buying a profitable business without touching your bank account if you follow this simple three-step formula:
- deals that serve you or your background,
- an understanding of the seller’s psychology,
- And an assessment of the business’ potential for an LBO (financials, management).
What could possibly be better than that?
Are There Alternatives To Carl Allen?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Is Carl Allen A Scam?
Time for the $1,000,000 question: is Carl Allen actually a scam?
I wouldn’t technically call it a scam, though others might.
It’s technically possible to make money with this program, so in that sense, it isn’t a scam.
What I’m saying is: that after buying, someone will send you a login to a website where you can actually view their material. No one is riding off into the sunset with your money, leaving you empty-handed… technically speaking.
But the second, more important question is: is Carl Allen LBO Business actually worth the investment?
My honest answer is that for most people out there, probably not.
There are countless other business models that are proven & easily scalable, so why risk it for… not an incredibly huge payoff?
I’d rather have a program with thousands of successful students & plenty of room for others to join.
If you’ve followed my blog for long, you know I recommend a few different programs depending on your skills & goals.
My current top choice is becoming a Digital Landlord because you have a proven, systematic path to 6-figures, and you can do it from anywhere you want.
I’ve got friends posting deals from the middle of the woods in a camper-van with their pet pig… which is quite cool.
What Is My #1 Recommendation For Making Money Online In 2023?
Alright, time for me to get real with my lovely readers for a moment:
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
THAT BEING SAID: I would at least recommend you implement something that is tried and true, because I’ve seen TOO MANY people (including friends and family) get burned by stuff like Carl Allen.
They come out of left field with some random idea, make it seem attractive, and then make themselves a quick buck by luring in unsuspecting people.
I’m not saying Carl Allen LBO Business itself is a piece of trash; I’m just saying you need to be very, very careful.
This is a big reason I only recommend proven, tried, and true business models, like Lead Generation & Ad Agencies.
There are a bunch of programs out there that teach you those skills, but my top choice is the Digital Landlords program.
Why? It has proven leaders with their own 7-figure businesses implementing exactly what they teach you.
I’ve also got over a dozen personal friends in there, so I feel comfortable telling you it works.
Whether you’re a complete newbie or have been around the block before but have never had that “big win” to propel you forward, their program works.
1)Time: If you’ve got a spare hour or two each day, you can do this. You can do this if you want to drop everything and go all-in. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring (for the most part).
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
2)Big Margins: With most businesses, you will often have really slim margins. That means you need to hit a serious scale to make serious money.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort to create the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on “auto-pilot.”
3)It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with Dealmaker Wealth Society, you would need to purchase a small and profitable business. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
4)You’re Helping REAL People: My biggest gripe with Dealmaker Wealth Society is that you’re basically only helping yourself.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other off-the-wall business models like Carl Allen and maybe hit it big one day.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.