From a $3M Acquisition to $88M Sale in 8 Years | Let's Buy a Business

 

 

Heyo,

Jordan Law spent 50 years in the Aerospace Industry with an incredible track record. He started out as an employee and worked himself up to upper management.

One day, his company was going under. The new company taking over the assets needed some help. Jordan came in and negotiated to buy the failing aerospace business with limited downside on his end.

He turned the business around which led to more acquisitions and streamlining.

A few key things he did to turn around every business.

  • Went back to the basics and tracked the small numbers

  • He invested heavily in his employees

  • He gave his employees ownership and profit-sharing

  • Jordan hired amazing employees and got out of their way

All this started with a $3M acquisition and ended with an $88M sale only 8 years later.

Look for opportunities within your own expertise. Would I recommend buying an aerospace company if you haven't spent 20 years in the niche? Probably not.

What have you spent 20 years in though?

How can you leverage that experience in your own search? 

 

 

From a $3M Acquisition to $88M Sale in 8 years - Jordan Law Interview

50 years in the Aerospace Industry: from getting nearly fired, to buying and selling companies in Aerospace. Jordan always had creative solutions and bet on himself to make things happen. He invested heavily in his employees and gave them a massive upside that led to a $3M acquisition to an $88M sale only 8 years later. 

 

 

How to Buy Your First Small Business through Acquisition Entrepreneurship

 

 

This Week’s Exciting Deals

 

1. Easy to Run Residential Pool Builder in Eastern North Carolina

Asking: $2.4 M

Revenue: $6.3 M

Cashflow: $1.2K

 

Yes, that is literally the title of the listing.

What I like...

The growth is consistent without any spikes or dips. The margins are healthy. 20+ years of operations and the service side is 6%. I'm very curious to see how you can upsell homeowners on using your pool cleaning and services after the initial pool build.

I would spend a lot of time understanding what they have or haven't done here. The recurring revenue could be a game changer here.

AND the asking price is below 2x.

What I don't like...

I've heard from many folks in construction that it can be brutal. You'll need a NC general contractor license so most likely you'll have to keep the current owner on as an employee of some sort. The employee part isn't the worst but the permitting can be gnarly here.

**Note - the broker put together a cool YouTube video highlighting this business. It doesn't have a lot of substance but a great, unique approach.

 

2. Finance Niche Content Site

 

Asking: $2 M

Revenue: $65K

Income: $58K

 

What I like...

5-6 years old in the finance site. Finance can be super lucrative and usually has higher multiples. There has been some ups and downs with traffic from COVID but it seems to have stabilized.

What I don't like...

What I want to highlight here is that they did NOT give many options for growth here. Well Ryan, why include this in here???

I want to highlight that the potential growth opportunities listed should be served to on a platter. There should be 10 of them. There should be lots of ways to grow it if the current owner hasn't tried them all.

**Note - On Empire Flippers, they do not do SBA loans. You need proof of funds to see listings.

Click Here To View The Listing »