Joshua Lindsey is the managing partner of American Business Brokers and acting CEO of PHX Private Equity. Joshua received his Bachelor of Business Administration in 2007. In 2011, Joshua received his Master’s from Cornell University, with an emphasis on Mergers & Acquisitions. Joshua has sold five of his personal companies, including one financial services firm he took public in 2006. He is an expert in small business mergers and acquisitions, and specializes in FedEx routes.
Joshua has personally represented more than 103 independent FedEx owners nationwide and has successfully sold more than 800 FedEx routes in the last four years. Joshua has specialized knowledge concerning FedEx and its approval process for new buyers. This unique knowledge not only allows Joshua to get the highest price possible for his clients, but he also is able to ensure that the buyers get approved in a timely manner, allowing the deal to close.
FedEx and its contractors work on a perpetual contract that renews each year based on service. This unique approach allows FedEx to cancel or remove a contractor at any time to ensure packages are still being delivered properly. This perpetual contract creates an issue for buyers, as the majority of FedEx routes will qualify for bank or SBA loans.
In some cases, Joshua and his private equity company PHX have been able to secure private funding for buyers in order to purchase FedEx routes. This funding has increased the number of deals closed and allowed sellers to get the highest price possible.
How did the concept for American Business Brokers come about?
I had purchased and sold several of my own personal companies and during that process I ran into a few business brokers along the way. I saw the fees they were making at closing and felt that I knew just as much about the process as they did, if not more, since I was buying and selling with my own capital, and I decided to get licensed.
How was the first year in business?
A lot of learning, but not from a knowledge of the transaction, more so learning how to identify what a good business looks like. A business that several other people would pay money for.
What was your marketing strategy?
In the beginning, we did mailers and telemarketing. Now, we only work on referral or by strategically seeking out specific businesses we know are in demand.
How fast did the company grow during the first few years?
Really fast. We have made the Inc. 500 list, two years in a row, as one of the fastest-growing companies in America. 2017 was over 4,000% growth and landed us at #89 on the list. 2018 was over 2,000% at #197.
How do you define success?
My definition of success would be when a person owns their life. Meaning they have the ability to go anywhere they want, buy the things they want, donate to charities as they see fit, and serve in any capacity they desire. The ability to have the luxury to choose anything would be success to me.
What is the key to success?
Discipline, hard work, focused effort, and constant repetition.
What is the greatest lesson you’ve ever learned?
That a personal relationship is not worth ruining over money or a deal. You are better off to not do the deal and keep the relationship, as there is always another deal and another dollar to be made.
What are some quotes that you live by?
“Work until you are done.”
“A true champion believes in himself when no one else will.”
Tell me about one of the toughest days you’ve had as an entrepreneur.
The day my two partners forced me out of the company I started.
When faced with adversity, what pushes you to keep moving forward?
My family, my goals, but more importantly, I train every day for the adversity, so when it comes I have the strength and foresight to push through and overcome.
What advice would you give to young entrepreneurs?
Do you want to do what you love or are you doing it for the money? There’s a big difference. If you are just in it for the money and to provide a great life for your family and yourself, choose a business that you can model after. No need to invent something. Just figure out a way to do it better in an industry that is proving to be lucrative. If you’re passionate about a business or project, come to grips that you may not make money for a long time, if ever. Many startups fail, so you better love it and not be thinking about the money.
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This interview was conducted for research purposes by author Jason Navallo for his upcoming book, Underdog.
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