Buying a company
I know that most on this forum are risk-averse but has anyone considered acquiring a company and keeping their day job?
I'm in a position to acquire a cannabis advertising agency. Still early but things so far look good. Probably send a LOI by week's end.
good luck that's pretty cool.
How much is it?
under 500K
Yes I'm going to do it. I had enough cash last year where I was thinking of franchising a gym or fast food place, but bought a house instead. Saving up more cash to do some entrepreneurial stuff in the next couple of years.
https://www.wallstreetoasis.com/forums/my-story-the-sequel-to-the-ownin…
Followed up with you on that DM we had a few weeks ago.
I feel gyms are too risky. There are plenty of chains around, and highly dependent on the time of year as well.
I am considering a small food or store-front type service, or start a small tax practice.
Love this thread. Considering something myself. Would love to hear more about your success or challenges, feel free to reach out
Yes I’ve thought a lot about it, just not sure what type to buy. How much are you expecting to cash flow year one after debt repayment?
I'm doing a seller finance type of deal. haven't put together an offer yet as I'm still very early in the process.
How did you find the deal? Business broker or online?
Do you plan on inserting yourself into management team or playing more of an advisor role and letting the team manage the day to day?
inserting myself. Gonna have the seller stay on as a consultant for 3 mths post sell. And then hope to hire some remote account managers and B2B salesppl to scale it. (looking at overseas talent to train and manage).
right now it's just the seller running the biz alongside his day job.
I'd work for you from the UK.
something sprung to mind there - acquisitions anonymous podcast - each episode looks at buying a "small" business, doing roll-ups etc.
That'd be a pretty interesting idea. I'd bet people have a hankering for stories of mom & pop locals making something of themselves like how everyone loved Dirty Jobs. That whole "if my neighbor made it, maybe I can too?!" feeling and getting to at least live vicariously through the story whether or not they actually try it.
The problem with these nano-PE ventures is finding a good business to buy. If it's a good business, and business is booming, you're gonna have to deliver the pitch of a lifetime to convince the owners/founder to sell their business to you. OTOH, if you find a business with good potential, in a decent market, that's being mismanaged - well, that's easier, but also requires much more research (and probably some industry/domain knowledge).
With that said, there ARE tons of small-scale startups/side projects/etc., ranging from 1 person to xx workers, that are just sitting there and making money - but for whatever reason, the owners/founders want to offload. You can find them on websites like empireflippers, microacquire, digitalexits, etc.
I found this one on one of those platforms
Interested more in that business. Seems very niche, but interesting. So they just do marketing support for cannabis companies? Digital? Anything else?
They do marketing for non-plant touching companies. They basically use influencers because cannabis companies really can't advertise in traditional ways
I started a service based business last year and this year acquired a business in the same space where the owner was looking to retire. Combination of cash and seller financing. Planning on growing the business organically and through acquistions over the next ten years, maybe can sell at that point.
I might be hijacking this thread: how much does it cost to franchise a McDonald? I assume it's pretty damn $$$ ?
Thanks for sharing, I am working on building my own company right now than acquiring one. Please keep us posted on your progress. Thanks
Passed on the cannabis media company due to it being a solo founder and the clients weren't on contract. I wasn't sure clients would stay after he sold me the company.
Now in LOI phase to buy another company. Can't say much until we get things signed.
I’ve dug into a bit, hardest part has been convincing myself I could do it & allocate cash.
Looking into light capital, heavy people/labor type of businesses.
E.g. apartment complex has valet trash. Worker grabs trash S-Th, no weekends, no federal holidays. Renters pay $15/month * X apartments. Complex gets to say they have an amenity, renters don’t have to deal with trash.
One question: how do you cope with not having saved much as an analyst in a VHCOL city?
Feel like this proposition is mainly for those above senior associate levels who have saved a healthy bit AND maybe 5% of truly sophisticated bankers/PE people who can actually achieve something?
Nope. You'll be surprised at ppl doing seller-financed deals.
Interesting.
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