The 1-5-1 Rule – Dealmaker’s Academy
Discover The Dealmaker’s Academy’s Golden Rule for buying and selling businesses. Jonathan Jay, the Academy’s founder, explains the ‘1-5-1’ rule in this brief video. He reveals:
- How you can use the Rule to become a more successful business investor.
- How following the ‘1-5-1’ Rule will ensure you enjoy a large influx of money every year.
Prefer to read this? Here’s the transcript:
Hi, this is Jonathan Jay from the Dealmaker’s Academy.
Welcome to this top tips video where I’m sharing with you experience of buying and selling businesses that goes back over 20 years and giving you just in 60 to 90 seconds each time a quick tip for you to actually implement in your journey of buying and selling companies.
And today we’re going to talk about the one, five, one rule.
Now the one, five, one rule is where you have built up a small portfolio of six businesses and across the course of a year you sell one business, you keep five and then you buy another one to replenish your stock, to replenish your portfolio so you always have six.
But what this means is, is that you can sell one every year so you have a capital event every year so you have an influx, a large influx of money every year but you’ll replenish your portfolio with another business so you’re already buying one a year once you’ve got to your six.
You’re buying one a year, you’re selling one a year and it’s very, very simple to do but it means you’ve always got a portfolio of six cash producing assets, one creates a capital event so a big money exit and then you buy another one to replace that one.
So remember the one, five, one rule is a great rule to follow.