How to Acquire a Business Without Using Your Own Money
This video is all about how to buy a business without using your own cash. If you want to know how to acquire a company without your own money, this is the video for you.
Jonathan Jay guides you through different ways to buy a company without using your own cash, including purchasing a company for a nominal amount, using someone else's money, and agreeing to pay the seller over time. He covers the pros and cons of each strategy and shares real case studies from his 70+ acquisitions.
If you're interested in business mergers and acquisitions, acquisition strategy, or buying an existing business, this is essential viewing — the single biggest barrier most people cite ("I don't have the money") is actually the easiest to solve when you know the right structures.
"The single biggest barrier most people cite — I don't have the money — is actually the easiest to solve when you know the right structures."
Each strategy has its place — the key is knowing which one fits your situation
Buy a struggling business for £1. The seller gets relief from liabilities; you get the platform, assets, and customer base at zero cost.
Pay the seller over time from the business's future profits. You agree a total price but spread payments across multiple years.
Link the price to future performance. If the business hits targets, the seller gets more. If it doesn't, you pay less.
Bring in investors or lenders who provide the capital. You bring the deal and the execution — they bring the cash.
Borrow against the business's assets — property, stock, debtors, or equipment — rather than your personal balance sheet.
The seller keeps a stake and stays involved. You acquire majority control with minimal cash by leaving skin in the game.
When a business is losing money or the owner desperately wants out, the seller's priority shifts from getting paid to stopping the losses. You take over the liabilities, the lease, the staff — and in return, you get the business for virtually nothing. Jonathan has done this multiple times.
Best for: distressed businesses, retiring owners with no succession plan, businesses losing money
You agree a total price but structure payments over 3-5 years from the business's cash flow. The seller effectively finances the deal. This is the most common structure — it aligns both parties and means you're using the business's own profits to pay for it.
Best for: profitable businesses, sellers who trust the buyer, any sector
The final price depends on future performance. If the business grows under your ownership, the seller benefits. If targets aren't hit, you pay less. This protects you from overpaying and incentivises the seller to help with transition.
Best for: businesses with growth potential, uncertain forecasts, sellers staying involved
Find individuals with capital who want returns but don't want to run a business. You structure a deal where they put up the money, you run the business, and you split the equity. The key is having a compelling deal to present.
Best for: larger deals, buyers with operational expertise but limited capital, scaling opportunities
