Kriterien für den Kauf eines Unternehmens

0:00I don't think we've done a deal that's not come through our deal flow pipeline. And of the 3,000 that come through each month, what percent actually make it? Oh, tiny. Right, we do two LOIs a month. And that's not to dissuade people, it's mostly because we just have a lot of people who don't have qualified businesses. Just to be clear, like if you have a qualified business, hit me up, but we just have a tremendous amount that are doing less than a million in profit, and they're like, "I'll give you 5% Alex." Oh, >> [laughter]

0:24>> man, so tempting. So, okay, it it if for example, the I mean, let's use this as a fake example. Someone has a bunch of locations, they're doing 1 million EBITDA. Um, we Well, let me just rephrase for a sec. >> And minimum is a million, just to be clear. So, like our like ideally for me, like I love that like three-ish, four-ish, you know what I mean? Like that's where like you're right about to hit that, so we can just like boom, 20, and then it's like And you're you're aligning with them, it's like, "Hey, if we want to hold forever," you're like, "Hey, like if I like you, maybe, right?"

0:54>> I'm good on either way, cuz like we don't we don't need the liquidity. I'm happy to let it compound tax-free, so like I'm good either side. Either way. And and I'll just rephrase over here, cuz I think it when we we hung out a year ago, it's you talked about how you were maybe moving more towards instead of minority investments into majority. How are you thinking about it now? Yeah, we're 100% in that in that camp. Our um and I it's you know, it's almost like uh it's almost like finding your price when you're selling a service, except in the deal world, and this is one thing that like if you really want to get into this world, like it is such a long game, because if you think about like product market fit, you have the same concept that happens at like a holding company when you're investing. You have like deal fit. And so, it's like, "What's my offer?" But not to a customer, but to a to an entrepreneur, to a founder, to somebody trying to grow their business. And so, it takes way longer to to have enough qualified candidates to even make the offer. And then it takes 90 days to even see if you can close the offer. And then from closing the offer, it takes another year or two to see if it was actually like worked out. So, like your feedback cycles are so long that it's it's very painful as somebody who is an ex-on, whatever you want to call me, who's used to being able to like, "Hey, let's try this out." and in 30 days have it both spun up, tested, and have data.

2:10Like, in 30 days we might be able to like talk to a couple entrepreneurs that we think are interesting. And so, anyhow, we have moved towards um bigger and bigger chunks of companies. Right now, we target 49% uh with most of the deals. We just We just did a majority deal 2 months ago. And so, we're now doing both minority and majority, and our minority slugs are bigger. Because it's the same thing where it's like it's the same work for us at 20% as it is at 51. In In some cases, weirdly enough, it's almost less work at majority because um I have fewer emotions to manage on the founder side because it's like, "Listen, I'm the one who's taking all the risk on now. And so, this is what we're going to do rather than saying, "Hey, man, I think this is what we should do. What do you think?" And so, I have way My speed of implementation on majority companies is so much faster. And like, what I would like to do in the next This is why it takes years to do this, but like over the next 2 or 3 years, I'd love to show the difference between our minority holdings and our majority holdings of how much more profitable and how much faster we grew them to then make an even more compelling case of Like, I don't necessarily want to fully exit founders. That's not my intention.

3:20It's more like we have done this before. Like, please Like, let me love you. Like, let me Let me just do what we already know how to do many times. And that Like, I remember I had a conversation with one of our founders. This is one of the companies we actually ended up buying with majority of. We like six phone calls to talk about a price change that I wanted to implement. And we implemented the price change, and we doubled profit. And it was big company already. Mhm. We doubled profit in 30 days. And And like, we increased the price and increased close rates. Like, we call that a wonderful a thing. Cuz they were mispriced. Like we we did a bunch of research, we saw all the competitors in the marketplace were We were like, "We're not even going high." I was like, "We're just going up to market."

3:59>> Yep. Which is I mean, I love those opportunities. They're not always there. But like But it If it had been a majority holding, it would have just been an email and be like, "This is what it needs to change to. Let the team know. Here's Here are the you know, bullet points to talk to the sales director." And he would just let them go. >> Yep. Do you think before So, when you had the 20% or so, like I I think you We were talking about this already. It's like they weren't Not that they weren't taking it seriously. I mean, maybe you just didn't have enough weight to throw around.

4:25>> relationship. And uh to be fair, like it's not like we wield authority. Like I've I'm not really an authoritative person from that perspective. Like it's always soft influence. We've never taken a vote in any company ever. Like what Cuz it's funny, cuz during the deal process, they're like, "Well, how many who gets I'm like, "Dude, we will literally never look at this contract again." Like I pride myself in the fact we've never taken a contract out after a deal. Um but it still feels a little different. Like no matter what anyone says, like if you if you buy majority, it just feels different. It's like, "Here's the plan. Let me know if you have questions about it." Or like, "What do you think?"

4:59>> Mhm. And I want feedback more I want feedback. I don't want to sell someone on it. You know what I mean? And I think that's the You're looking to collaborate. Yeah, exactly. >> Yeah. Real quick, 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.