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Hey Biz-Buyers,
Let’s keep this brief.
Our team can’t seem to agree on something right now…
And we need YOU to help settle the debate.
Our question is this:
What is the #1 thing you’re hoping to learn from us? Let us know here:
It shouldn’t take much longer than 30 seconds.
*Pausing for dramatic effect while we wait for everyone to submit their answers……*
Okey dokey, everyone ready? Let’s get down to business.
Today, in 5 minutes or less:
Lessons learned from a deal that fell flat…
One of the most interesting parts of our community:
A simple little Slack channel called “Lessons Learned.”
As members work toward deals, they drop gems in the group. Progress? Lesson. Mistake? Lesson. Win? Lesson. Fail? Lesson.
The idea is simple: Learn from the collective action of many people.
One member, Wes, recently stepped back from a deal he’d been patiently pursuing since he began his search.
“I learned some great lessons in the process,” he said.
Music to our ears. So what’d he learn?
1. Interviews are hugely important
“After 2 interviews with the owner, an interview with a key employee, and a site visit, I learned there were key discrepancies between the offering memorandum and the reality of the business. I was always friendly about it, but I stayed curious and kept returning to areas where the answers bothered me.”
2. Get to know key employees if possible
“Get alone with key employees if you can. The one I interviewed was really candid with me in a way he hadn’t been with the broker when the boss was around, and this made all the difference in my decision to walk.”
3. Broker impression matters
“Even if a deal doesn’t work out, the impression you make on the broker matters. Even though I was cutting the deal loose, this broker was impressed with how I handled myself throughout and expressed that he thinks I’ll be a good buyer to work with on the right deal. He offered to add me to his short list of buyers who see his deals before they go public. So no sunk cost regret here at all — I consider this one a big win.”
4. Resist the “offer right away” rush if you can
“I was able to take my time with this deal and it helped me understand it wasn’t the right one for me. Ask about the broker’s timeline expectations. Try to front-load the investigation if you can. It’s looking to me like the better brokers want you to dig in BEFORE the LOI stage because it saves everybody time and money in the long run.”
(10 NEW) Things we’re hearing on…
Meme: Combine LeBron with your reaction to being told 7x debt/EBITDA is too much leverage for an HVAC biz with a fax machine
Bookmark it: A great thread on what people would do as an owner on day 1 after buying an SMB
Meme: Ivy League MBAs spotting a 3x multiple Boomer HVAC business that surfaced out of nowhere…
Clint thinks biz owners should be like the Greater Sage Grouse. (That’s a bird, by the way.) Here’s why
More, from Clint: How to figure out if a biz is over-reliant on the selling owner
Love to see it! What appears to be a clip of 100+ high schoolers competing in a masonry competition
Agree? People who understand driving value in residential service businesses will focus on these things…
The year is 2043. There are thousands of search funds looking to do levered SMB buyouts (meme continued…)
Bookmark it: A great thread on the topic of working capital
🚨 On May 18th, we’re launching our Main Street Accelerator. Add your name to the list to be reminded (so you can secure a special introductory price)
Who’s looking to buy a biz?
What do a…
- 🧑💻 15-year IT professional and coder serving in the US Space Force
- 🧑🔧 Millwright who’s also building a home inspection company
- 🧑💼 Long-time sales consultant with a Big Tech background
- 🧑⚖️ Labor and employment attorney
- 💆 Sports chiropractor with a mobile clinic business
… All have in common?
They recently began their Contrarian Community journeys.
That clink you just heard?
Those were the Main Street gods toasting a beer in their honor. They know full well the hard that comes with working to buy a business.
The slow, uphill grind. The potential for failure.
It wasn’t a celebratory clink.
It was a clink of respect.
