Warum ich 32 Zahnaufhellungs-Studios gekauft habe

0:00How do you tell if there's a 10x? What do you look for? What sort of qualities do you see? >> So, it's actually just looking at the business like a pipeline. So, it's like, okay, you've got uh x x percent like basically just have to understand everything from click to close to renewal. And so, every business more or less is like you have eyeballs that at some point get converted into leads or they get converted into customers. So, if it's leads, then they have eventually have to get a scheduled appointment. they have to show, they have to close and then uh on the back end once they are closed they have to get a product delivered or a service delivered and then they have to buy again and again or get upsold into other things right so if we look at that we can see breakages along that line because that would be something that we'd get in diligence just like okay what are [clears throat] the clickthrough rates on the ads what are the CPMs on the ads what are the conversion rates on the pages what percentage are scheduling what percentage are showing what percentage are closing what's the average offer rate what percentage are we collecting in cash up front what's the average close rate um on the back end like how many dropouts do we have in the first 48 hours after that uh what does it look like over the 12 months or 24 months for those customers. What percentage are ascending to the next level of service?

0:55And so if we look at that and we have our benchmarks for what we think we can do with the processes that we have already tested, then we're like, okay, well these guys are getting 30% of their appointments to show up and we know that we can get that to 80. It's okay, well there's a 2 and 1 halfx. Okay, boom, there's one. And we're like, okay, um, I think they're mispriced on this offer and I think we can at least double this. It's like, okay, well there's 5x. You got two and a half and two. You're like, okay. And right now they're not doing anything to reduce their turn. and they're at 10%. I think we can get them to three. So there's a triple. And so we're like, okay, so that's 15x. Are what's our confidence score in terms of like our likelihood that we'll be able to implement these changes? Is it like a super big overhaul or is it just like there's a handful of things that we can implement immediately? See that? And um the easier it is, the more likely we want to do it. And so like I just bought um a chain of um teeth whitening studios with 32 locations. we just bought. Um, and I just got so excited because I saw their sales process and I was like, I'm going to

1:48>> It's a very [snorts] interesting business. >> Oh, very interesting. Um, >> I've seen a lot of those um just this direct to consumer products though that you see that you get on the subscription and they just send you >> uh I actually I have a whole bunch from Ali. >> Okay. Believe it or not, from I think that was an AlphaM product. >> Alpha M. Yeah. Well, I saw their sales process and was like, >> I could make this like we literally can just change a handful of things around here, switch it from one time to membership, make these packages based on these price points, have an intake questionnaire, you know, like do some of the things that we already know work over and over and over again, and we 5x the LTV of the customer. So, 5xed how much people were worth to the business.

2:27And so, it's like, great, well, there's a 5x and uh then all I have to do is double the locations over the next five years. I got a 10x. Great. >> And then what do you do once you do that? Is it just collecting cash or is it to eventually then sell that business? >> Depends on the business to the next one. >> Depends on the business. Um I would say there definitely are like I used to give probably like I always wanted to hold everything forever but I think there are times where it does make where where businesses get to a point where the next like increment of growth um requires like an order of magnitude in terms of effort that it's not worth or we might determine you know what we're we're good cashing out on this one. like we might not be the right partners

3:05>> or like we might not be the right owners to take it from here to there. Um it also just depends on what's on the horizon if it's like you know interest rates are super low. I mean I I sold I sold literally everything I owned in 2021 cuz money was free. And so I was like I sold my house I sold my cars. I sold all three of my companies. I sold everything. I was just completely cash um because it just it just seemed ridiculous what people were willing to pay. So I was like okay. And so if like something like that comes along that I would be consider someone wants to if someone wants to buy it more than I want to own it then I'll always I always entertain offers. Now, in hindsight, it seems like you made a pretty good deal by selling everything somewhat at the peak of the market. I think you I think you cashed out, the market kept going up a little bit and then Yeah. Amazing time. And then I think you were in contract to buy a house, weren't you?

3:43>> And then you backed out of that >> and also a fantastic time. >> Yeah. So, things have worked out pretty okay um on on the timing of that. And I would not like cla So, it wasn't like I think I'm timing the market. It was just more like >> this makes sense like this is a this is a deal that I will accept. And on the flip side, when you're buying, you're like, I don't know if this is a deal I want to do. And it's just more like that. Unless you have like an absolute need, which I would say on the flip side, like if you need a house, buy a house. You know what I mean? Like if you like whatever, if you need a if you need an office for your company, like buy an office because you're going to make more than trying to time the market perfectly. At least in my opinion.

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