Ein Angebot, das niemand ablehnen kann

0:00I provide wellness dentistry to my patients. We do $4 million revenue. >> What do you provide your patients? >> Um wellness dentistry. So, it's a niche within dentistry, but it's like biological, holistic, but more medical related. >> it called dentistry? >> Wellness. >> Wellness dentistry, got it. Okay, sorry. >> And um because of what I'm doing, I'm also have a educational platform on Kajabi. >> Okay.

0:24>> And people come and learn from us and coaching from us, and we do about a million dollars on that. Just kind of a side track. >> Yeah. >> And >> Start a software company. >> Yeah, that's a no. And um I actually sitting here yesterday and thinking with the EBITDA and EBITDA multiples that we see in dentistry, we actually can have a $100 million valuation in about 3 years.

0:49The reason is the coaching clients that we helping them >> Mhm. >> um if we're doing four at $1 million, so that's 20 20% EBITDA. And if we can help them grow and come together as a DSO, a dental support group, >> Uh-huh. >> then we can have a collaborations like buying powers and also evaluation. >> Yeah. >> And we can come to that eval- to that um evaluation.

1:16>> that does this. I'm super familiar. >> [laughter] >> So, I have a question for you. How do I approach these practice owner that I've been working with together for years to come together or acquire them or work with them like what you've been doing with other business that in your portfolio >> Uh-huh. >> because together we get stronger >> Yeah. >> and have more leverage. >> Yeah, I think you just need to make an offer so good they feel stupid saying no. Um so, basically, if they were to sell on their own, their multiple might be like 4x or something like that. If they were to sell together, you might be able to get a 10 or a 12, right? Um and that means like if you're getting at least, call it $10 million in EBITDA or more, you'd be able to get 10 or 12 um on it.

1:55>> Mhm. >> And so, the idea would be um you're going to get four on your own, you'll get seven with me, and everything above seven I keep. >> Okay. And then >> There's a million ways to structure this, but that's like a like either either you have to outlay a lot of capital to do this, or you have to give up some of the pie. And I think that especially for your first one, just giving up some of the pie, getting the first ones in. And like honestly, you don't even need to do the $100 million extra for the first one.

2:21Rope four or five of them together, you'll be able to get a reasonable exit, proof of concept, and then you can rope 25 together. Now the value of what you have, which is why I like the business a lot, I put an offer in the business. We got into a bidding war between us and a private equity firm another one. Um They paid more for it than I was willing to, but the the magic of it is that you don't want to get rid of the coaching business long-term, because it's the goose. You want to sell the eggs.

2:49Keep the goose. And so you bring people in because they want help scaling their thing, then you would then give them your systems, your price points, your training, your whatever. And so what happens is that you end up consolidating the operations and unifying everything the same way you would do post acquisition if you were to kind of integrate everything, which is how roll-ups work, right? And so you're actually doing like three quarters of the work a roll-up would do, which is why this is such a magical little combination that you have right now.

3:18Um Yeah, the TLDR is Give me it's more legalese, but you would basically get an option for 100% of the business and drag along rights to sell it as long as it's over X amount. And you have to get everyone to agree >> Okay. >> ahead of time. And by doing that you can um decrease the likelihood that basically you can't have like you have to get all the rights up front, otherwise when the deal gets closed the person who's most greedy will hold out the longest and [ __ ] everyone. I only know this out of pure experience.

3:49>> Okay. But I'm the one that have all the IP and the AI portal and all the support. Basically, the portal call and the check in the system. And how do we leverage that in that deal negotiations? >> Negotiation with whom? >> Like with these practice owner that we want to come together and create this DSO. >> I think they're just separate conversations. >> Can I still keep that? It's in my my business. >> The coaching AI stuff?

4:15>> Yes. Uh-huh. >> When you say keep it, you mean post sale? >> It's a different uh different entity. >> Yeah, but you're saying you say, "Can I keep that?" Do you mean post exit to an acquirer or do you like >> Yeah, so the practice >> sell it as my point? >> The practices, right? We we're going to sell the for private equity, for example, the practices together as a m- five or 10 locations, but I want to keep the educational platform and the AIs and all the IP.

4:40>> Yeah. Yeah. You would just I mean, it's a negotiation with the acquirer and you'd probably >> Yeah, you give an unlimited license at no cost to them for X period of time or for, you know, it's restricted for this period of time for these territories. Like it's just a that's just a negotiation. >> Is that something acquisition.com can help to structure that? >> Yes. >> [laughter] >> I literally wrote this entire deal. So, I'm fairly familiar with it. >> Okay. Thank you. >> No, you bet. 100%. If you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you de constrain the business and you're trying to scale we'd love to help you out on the thank you page you can just book a call with my team and we will look at the business see if we can help and if we can we'll invite you out to Vegas and we'll do this in person live.