Are you thinking about buying a business but feeling overwhelmed by the process? In this episode, Tim talks to Aurelius, CEO of Midland Machinery, about his journey of purchasing a business and the key lessons he learned along the way. From navigating the complexities of financing and negotiations to managing the transition, Aurelius shares his firsthand experience in acquiring Midland Machinery. Whether you’re looking to buy your first business or just curious about the process, this episode breaks down the critical steps to help you make smart, informed decisions.
Tim is an entrepreneur who believes everyone should explore the opportunities that business and real estate can provide on the path to financial freedom. He owns and operates a wine & liquor store, a software startup, a consulting company, and a growing portfolio of commercial and residential real estate.
Tim’s passion for independent business has led him to support dozens of other business owners. For over a decade, he has worked with businesses on strategy, processes, finances, and marketing. These experiences, along with analyzing dozens of other businesses for potential acquisition, have provided Tim with an immense knowledge base to pull from.
Tim has appeared on multiple top-tier podcasts in the financial space, such as Bigger Pockets Money and The Freedom Chasers Podcast.
[00:01 - 15:15] From Banking to Entrepreneurship
Aurelius began his career in banking in 2006, following the failure of his first startup.
Worked his way through the ranks of M&T Bank, focusing on business banking.
Developed a passion for helping business owners and understanding their financial needs.
Decided to transition from banking to owning a business in 2020.
[15:16 - 29:46] The Power of Partnerships
Aurelius partnered with a childhood friend and another trusted partner.
Structured ownership with equal shares for main partners, while minimizing risk for the third.
The importance of having partners who believe in you and share the same vision.
Focused on building trust with partners and delegating tasks to those with complementary skills.
[29:47 - 43:19] The Acquisition Journey
Aurelius and his partners looked at various deals before deciding on Midland Machinery.
The acquisition process took two years, with many hurdles along the way.
They rejected seller financing to avoid future complications and went with traditional bank loans.
The importance of persistence and following up during the acquisition process.
[43:20 - 57:43] Transitioning into Business Ownership
Aurelius’ approach was to focus on building relationships with employees before implementing changes.
A gradual approach to business improvements, including customer service and supply chain.
Established long-term goals and shared the company’s 10-year vision with employees.
Learned the importance of patience, trust, and humility when leading a business.
[57:44 - 01:08:33] Key Lessons for Aspiring Entrepreneurs
Break down complex processes into manageable steps, much like buying a house.
The importance of solid financials and clear agreements when acquiring a business.
Stay persistent and avoid listening to doubters who focus on the negatives.
Surround yourself with a strong support team of lawyers, accountants, and other professionals.
Guest Bio:
Aurelius Chaves is a former business banker who left corporate life at the age of 40 and bought a construction equipment manufacturer with his childhood best friend.
If you found value in today’s show, make sure to subscribe so you never miss an episode packed with insights to help you buy and grow a business that creates real financial freedom.
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Tweetable Quotes:
“ The more you have to explain in the financials, the more difficult it's gonna be.” - Aurelius Chaves
“ The number one thing that you could do is be responsive.” - Aurelius Chaves
“The further it deviates from the actuality of what the job is and the pay for that job, the more complicated the financing gets, the more complicated it gets when you wanna sell the business.” - Aurelius Chaves
“ There are lawyers that are deal makers and lawyers that are deal breakers, and just figure out quickly that yours is a deal maker.” - Aurelius Chaves
“ If somebody tells you 90% of small businesses fail within 10 years, just you don't need to listen to anything else they're telling you about it.” - Aurelius Chaves
