Self Funded SMB
101 posts
Self Funded SMB
@SelfFundedSMB
Leaving behind a career in M&A in the hunt for a great business in the great state of Colorado
Katılım Mart 2022
368 Takip Edilen966 Takipçiler
I’ve built 25+ finance tools. But this one might be the most important for founders trying to scale.
The LTV:CAC calculator.
It shows you:
• What a customer really costs
• What they’re actually worth
• Whether growth is working
Want it?
Like + comment “CAC” and I’ll send it.
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@AndyAcquires Great to see realistic takes on where the market is actually at. It is frustrating to see potential searchers being sold a glossy narrative that if they rip the investment criteria page out of the HBR guide and do a little networking a high-quality business will appear at 3x.
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Very true of the current markets , there are more buyers than sellers across North America. As a searcher if you pay a high multiple to acquire, make sure you have a high conviction of growing the EBITDA and take on less liabilities.
Bruce Marks, MBA, CM&AA@sbabmarks
War Story Saturday (WSS): Bruce, I want to submit an LOI. I know it's just over a 5X Multiple, but can we see if the deal pencils. It seems like Sellers are not willing to budge and with lower interest rates expected, perhaps it makes sense. Here's what I'm seeing 🤔
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Get off your a$s.
Want motivation?
Go to UltraSignup and look at the ages of a bunch of ultra runners (50k+ distances).
50+. Some 60+. He|l, some 70+.
A 52 y/o just ran 500 miles of the Colorado Trail.
Age isn't an excuse for your laziness.
p.s. I'm talking to myself...
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@patrickdichter Immediate credit for the add-back ✅
Sko Buffs
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My favorite add back I’ve seen on a business for sale:
“CU football tickets. Had to do it for Deion. Go Buffs!”
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@SelfFundedSMB There’s a re developer here who likes to take meetings on road bike rides up Vail Pass.
It’s a gangster move tbh.
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We run into pro/Olympic athletes all the time here in Vail.
It’s not that they’re just amazing at their competitive sport, it’s that they’re usually all around elite athletes.
A pro downhill skier will also likely smoke you on an uphill bike race or in a game of golf.
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The most remarkable writing advice I've heard:
Write like you're writing an email to a long-time, trusted friend.
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Self Funded SMB retweetledi
simple 15 cell cash-on-cash calc that gets you to within 100bps of the IRR of the full model anyways
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@EyeforRetail_ Racking my brain, but the only independent brands I can think of are those launched on the backs of a celebrity’s existing audience (e.g., prime, aviation, etc)
$PSCO’s Bubly is an ex. of a corporate brand that won solid market share nationally at launch.
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What new brands have successfully launched nationally in the US vs building up more gradually from their home market?
Eye for Retail@EyeforRetail_
CPG brands need to dominate their local market first. There are many reasons for this, not least of which is the perceived value to an acquirer. If you dominate your local area and expand slowly outward from there, maintaining high rates of sale, it is far easier for an acquirer to extrapolate your high sales potential through their strong distribution network, and justify paying a premium. If you expand too quickly and underperform in some areas, you cast a shadow of doubt over the brand’s ability to perform more broadly. And that will be reflected in the price and might diminish their enthusiasm to purchase your brand at all. After all, what matters to big CPG strategically is getting their hands on a hot brand that they have difficulty creating internally themselves. They know how to sell and operate. Show them you have what they need. And they’ll come knocking.
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Testing a new approach on the proprietary business search today
I'm emailing C suite & GM's asking for an intro to the owner & offering a $10k referral fee (if I buy the biz)
Curious how it will do!
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@ClintFiore Thanks Clint! I agree. 📞 has been active on all of them ahead of putting pen to paper
Like all good businesses with a good broker / process - it has been competitive. Good feeling on this one though 🤞🏼
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If you're tired of sending in LOIs and hoping they get accepted, pick up the phone! Talk extensively to Broker and/or Seller and let them know where you're at with your thinking on the LOI price and terms and see if that will work for them. Then send them an LOI they already agreed to sign.
Let them know you don't want to waste their time, and that you want to make sure you nail it and can quickly get accepted and move forward. Figure it out together.
There's no rule against slam dunks in this league.
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Might take 5-10 shots on net
Doesn’t hurt to get in touch with the broker if you can to tell him why over the phone you’re the one + include resume/ background for Owner
For the Owners, they want to know who they are selling their legacy to so helps to put face to LOI vs. email
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@CBarrett_CPA Thanks 🤞! Professional services (not an accounting firm).
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I posted a basic explanation of "forgivable" or "contingent" promissory notes and have been inundated with requests for more info.
These notes are one of the most powerful protections in SMB M&A.
If you want the detailed guide, please reply below and it will auto-DM to you!
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@seanplanchard @jordanwinery Enjoy Sean - that’s awesome
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I love wine. (In a different life, I was on the road to training to be a master sommelier; no, my DMs are not open for wine recs.)
In particular, one of my favorites is @jordanwinery. It’s pricey but it’s worth it.
Tonight I’m celebrating (a little early) a huge win—6 years in the making.
The details don’t matter. What matters is I have a beautiful woman by my side. A happy home. A great dog. And a whole lot of love.
The Big Man has me. God is good.
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@Berci Would you use this en lieu of an in-person interpreter -or- only in the absence of being able to find/schedule an in-person interpreter?
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Breaking language barriers in remote care is crucial for progress. Google introduces Translatotron 3, an innovative, unsupervised speech-to-speech translation tech, seemingly not related to healthcare. blog.research.google/2023/12/unsupe…
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