I watched the entire thing. Great interview! One caveat tho. This guy from Greenwich CT, meaning he is from a LOADED family so his “startup” had a LOT more capital than most of us peasants start with but hopefully one day you’ll interview someone who started with literally nothing. Thanks!
If startup funding is what you consider the biggest caveat, you aren’t cut out for business. You can EASILY find pml or hml that’ll consider your business strategy over your background.
Regarding finding a person to run the newly acquired business... any additional insight to add? Is it all about luck until you have the scale to train a CEO yourself? How would you go about finding a reliable person to run a SMB for an absentee owner?
Would like to see a video on what kind of companies will be best during this next supposed downturn I am looking at a pool route, seems low overhead and could scale no one has ever contacted me about cleaning or servicing my pool since I stopped using a service, seems most of them do not market very much
Thanks, David! A question I have: do you think a similar sort of holding company/portfolio strategy might work for acquiring businesses doing ~$200K in EBITDA? Let's assume the following: your acquisitions are of the same business type and you are knowledgeable about the industry, and you put managers in place, but are an active owner (a few hours every week working on each location). My dream would be to run a holding company that sort of rolls up small auto repair shops. I notice that micro PE firms like Chenmark almost all have a $500K EBITDA minimum, which makes me question if there is something about smaller businesses that make this model impossible. Basically, I'd like to create a business sort of like Chenmark, but focused on smaller biz. Do you think this is doable? Have you seen any folks succeed at this?
Sure, you are the one who will have almost all the C-suite responsibilities for all the companies though. So, your bandwidth might be challenged. You may find yourself growing then divesting of some of these and investing in bigger things as your holdco evolves and you want more leaders to join you.
He was a guest speaker for the Business Buyer Adventure group coaching program. All the past speaker recordings are available for members. You can learn more by watching the video at www.BusinessBuyerAdventure.com
@@DavidCBarnett is it possible to use a mix of seller financing and bank loans? For example for a £200k business, can the seller finance £140k and we get a bank loan for £60k?
This guy is such a finance bro. His monotone voice and approach to acquisitions and management are not something to really aspire to. You have had much better guests on your show.
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Thanks David, I can’t tell which is more impressive, your content or your guests, keep up the terrific work.
Thanks, will do!
Love this !!
Thanks
Why do some listing like on biz buy sell or biz for sale not show you the EBIDTA???
Either they don't want to give away too much info, or it loses money, or they don't know how to figure it out. One of those three generally.
@@DavidCBarnett could that be a good sign for a distressed sale? what is your experience of what is the most common reason they do not post that info?
I watched the entire thing. Great interview! One caveat tho. This guy from Greenwich CT, meaning he is from a LOADED family so his “startup” had a LOT more capital than most of us peasants start with but hopefully one day you’ll interview someone who started with literally nothing. Thanks!
I don't know about his family, but he and his partners did have high-income jobs that would certainly have afforded them some of the startup capital.
If startup funding is what you consider the biggest caveat, you aren’t cut out for business. You can EASILY find pml or hml that’ll consider your business strategy over your background.
Regarding finding a person to run the newly acquired business... any additional insight to add? Is it all about luck until you have the scale to train a CEO yourself? How would you go about finding a reliable person to run a SMB for an absentee owner?
Most buyers look for a business that has a #2 that may be good to fill the top job. That's the easiest way to find the operator. Told this by many.
Would like to see a video on what kind of companies will be best during this next supposed downturn I am looking at a pool route, seems low overhead and could scale no one has ever contacted me about cleaning or servicing my pool since I stopped using a service, seems most of them do not market very much
36:34 bookmarked. BRB
Thanks, David! A question I have: do you think a similar sort of holding company/portfolio strategy might work for acquiring businesses doing ~$200K in EBITDA? Let's assume the following: your acquisitions are of the same business type and you are knowledgeable about the industry, and you put managers in place, but are an active owner (a few hours every week working on each location). My dream would be to run a holding company that sort of rolls up small auto repair shops. I notice that micro PE firms like Chenmark almost all have a $500K EBITDA minimum, which makes me question if there is something about smaller businesses that make this model impossible. Basically, I'd like to create a business sort of like Chenmark, but focused on smaller biz. Do you think this is doable? Have you seen any folks succeed at this?
Sure, you are the one who will have almost all the C-suite responsibilities for all the companies though. So, your bandwidth might be challenged.
You may find yourself growing then divesting of some of these and investing in bigger things as your holdco evolves and you want more leaders to join you.
Have you got a link to Palmer's previous call with you?
He was a guest speaker for the Business Buyer Adventure group coaching program. All the past speaker recordings are available for members. You can learn more by watching the video at www.BusinessBuyerAdventure.com
Does he use seller financing for his first few acquisitions?
Every acquisition should contain a material amount of seller financing. It's my understanding that they've done this in most deals.
@@DavidCBarnett is it possible to use a mix of seller financing and bank loans? For example for a £200k business, can the seller finance £140k and we get a bank loan for £60k?
This guy is such a finance bro. His monotone voice and approach to acquisitions and management are not something to really aspire to. You have had much better guests on your show.