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- How to Buy into your Firm as a Partner + Quality of Earnings Mistakes | Let's Buy A Business
How to Buy into your Firm as a Partner + Quality of Earnings Mistakes | Let's Buy A Business
Heyo,
I was talking to a friend this week about their business. Their business has been brutal for the past 30-40 days. Like 16+ hour days. 6 days a week. That sounds like a lot but that starts to wear on your real fast. You question everything.
I'm not downplaying their brutal stretch but if entrepreneurship was easy, everyone would do it.
Your 'WHY' needs to be massive.
It needs to be enough that you wake up before your alarm goes off.
Your 'WHY' needs to be Red Bull in your veins so that you will break through walls.
How to Buy Your First Small Business through Acquisition Entrepreneurship
How to Buy Your Way into Your Firm + Quality of Earning Mistakes
Jon Allen is incredible with company finances, understanding where money is going and how to grow profitably. He also knows acquisitions and exits. It’s a powerful combo.
This Week’s Exciting Deals
1. Four Established and Integrated North Texas Home Services Brands - North Texas
Revenue: $10 M
EBITDA: $1.5 M
Asking Price: $7.9 M
I love the cross-selling here with the 40 year history.
What don't I like? The multiple. It may be justified but you'll need a chunk of seller financing (seller note or earn out) IMO.
2. Lucrative Agritourism Farm Tours/Horse and Carriage - Georgia
Price: $2.8 M
Says RE is worth: $2.3 M
Owners are retiring. Amazing property and amenities. I imagine they are behind any digital marketing and other marketing channels. 97% occupancy means they need to increase prices. Mountains, land, lifestyle business (not in the 'I don't want to work sense' but in the 'you don't sit in front of computer sense').
When RE is involved, you can have a 25 year amortization on an SBA loan...
What I don't like? I don't like horses.
Click Here To View The Listing »
3. Lucrative South Puget Sound Tax and Accounting Firm
Revenue: $3.8 M
EBITDA: $1.3 M
Asking Price: $5.5 M
First off, not loving the price but love everything else. Recurring revenue. Big history. 19 employees. 2200 clients!! 3% growth!
Hey, you might say, 3% growth? That sucks. No. That doesn't suck. That means it's stable. It's your job to grow it 5-10% a year.