BuyAndSellItAll Adopts New Managed Investing(TM) Approach To Private Equity
Toronto, Canada (PRWEB) September 02, 2014 -- BuyAndSellItAll Inc. has adopted a new management approach to private equity because it believes that the traditional angel investing model is broken and has structured itself as an investment company with a hands-on management philosophy. Operating as the parent, BuyAndSellItAll currently owns three home-grown operating companies, Automall Network, Transition Squad and TheyWroteOffMyCar.com, as part of its investment portfolio. The company plans to focus its energies on growing the existing businesses while investing in 2-3 very early stage synergistic start-ups per year over the next few years. With the mantra of “Start->Grow->Exit” as its philosophy, BuyAndSellItAll is setting out to reduce its risk through more direct involvement and management compared to the traditional angel investing approach, while building a stable of real businesses that focus on cash flow.
"I have been a serial entrepreneur, in fact a parallel entrepreneur, all of my working life and have been constructing this business model in my mind for some time now," says Viraf Baliwalla, founder of BuyAndSellItAll. "I've always felt that if you have a parent with senior executives in various aspects of business, like marketing, sales, finance, IT, etc., then that team can manage several operating entities that can run very lean and focus on their core business. In addition to these expert resources, back office services can also be shared amongst all operating entities at lower costs until they reach profitability, to make investment dollars work more for growth than overhead".
Angel investing is still evolving, having advanced from individual investments from high net worth individuals or VC's to organized angel groups that syndicate deals, to reduce risk and increase deal flow. Overall statistics show that less than one in ten investee companies will be successful and will pay for the losses of the other companies. However it may take 5-7 years of anticipation for that one company to get there. This means that an individual investor needs to have approximately 10-15 companies in their portfolio consistently and then cross their fingers that one of them is the next Facebook. That's not great odds.
Start-ups all require capital, but more importantly need discipline, mentorship and infrastructure on demand as they grow. A Managed InvestingTM approach helps investee companies monetize faster and even pay distributions to the parent company and investors, while moving towards an exit. This is a proven model in established companies where each operating entity is represented by a department or a product line. A product manager leads a unit and is accountable to Head Office. It runs lean and get shared resources of marketing, IT, HR, accounting, etc.
“I got involved with angel investing about a year ago" says Baliwalla. "The challenges observed for both investors and investees confirmed that a Managed InvestingTM approach would be beneficial for both sides, however synergy is very important.
"Once you build a channel to your end customer, then you can fill it with many other things thus providing multiple lifetime revenue streams per client" adds Baliwalla. "There is a greater trust factor and marketing to the same clients becomes easier and less expensive because a relationship has already begun. We have Transition Squad clients who have taken auto buying courses and bought cars through Automall Network, and Automall Network customers who are now regulars at Transition Squad's estate sales and consignment store".
BuyAndSellItAll's portfolio consists of:
Automall Network, an auto buying consultancy that conducts independent market price research to establish the best prices for vehicles in a given market, through mystery shopping and direct negotiations on behalf of consumers. Their "Best Price ReportsTM" sell for $75, eliminating the need for comparison shopping and allowing consumers to negotiate a deal quickly and painlessly. For the convenience of those that don't want to negotiate, Automall Network also offers a Full Concierge Service for $295 where they will negotiate the price of the new vehicle, trade in and extra fees that dealers charge;
Transition Squad, a project management franchisor that helps seniors downsize and works with families going through a parent transition. Transition Squad conducts estate sales and online auctions to sell the clients' home and contents, followed by managing the cleaning up and clearing out of remaining items. They also operate their own consignment store to continue to sell clients' belongings that have not sold at the estate sale or auction;
TheyWroteOffMyCar.com / MyCarIsWorthLess.com, consumer help lines for people with total loss or diminished value insurance claims. TheyWroteOffMyCar.com provides valuation services to help consumers ensure they are getting a fair settlement offer from the insurance company after a total loss, while MyCarIsWorthLess.com is a membership based service that assists members recoup their diminished value after a not-at-fault accident.
BuyAndSellItAll is an investment company that creates and invests in very early stage start-ups that are synergistic with their existing portfolio of companies.
For media inquiries, contact Cameron Thomas at (866) 310-8701 x332 or cameron(at)buyandsellitall.com.
For investor partnership inquiries, contact Viraf Baliwalla, President at (866) 310-8701 x303 or viraf(at)buyandsellitall.com.
Viraf Baliwalla, BuyAndSellItAll Inc., http://www.buyandsellitall.com, +1 416-249-4049 Ext: 303, [email protected]
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