One is the, is the brand name. You know, the company has been in business now for 33 years, so there's some establishment of the brand name in the area. One is subcontractor relationships.
Acquiring Minds
How to Structure Around Risk in a $250k SDE Acquisition
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So we have some sub. Sub. Subs that we've been working with for 30 years. And those are, those are really valuable.
And we have about 30 to 40 given subs that we work with at any given time. And establishing that like if I was, I did evaluate as an alternative starting my own gc, which would have been cheaper obviously. But establishing all of those relationships, trusting relationships with your subs, where you get preferential payment terms, you get preferential bid terms.
There's a lot of value in that. There's also value in keeping the license number. Our license number is like a very.
What you would consider a very low number for people that pay attention versus giving it to me or like starting a new one, you would get a very high level license number that indicates you lack experience in the construction world. And then.
And sorry, who, who would, who would be savvy to that?
Well, there is a theory that people, customers, some customers, I would say maybe a proportion, smaller proportion of customers do pay attention to this. And also suppliers and other creditors of some kind do pay attention to it. In addition to eventually, if we talk about the future, if I branch out into different types of construction, say we start a small commercial construction arm, those…
Great. Carry on.
So those are some of the things I think that you're buying, but those things aren't. And the other thing is like with the. I was very interested also in this documentable past performance because if I register the company as a service disabled veteran owned small business and then start going after commercial or government contracts, somehow past performance, 30 years of past performance is…
I have to have most, most government sort of things. You have to have a minimum of five years. And so that changes the calculus about how you might look at starting your own company versus acquiring one, if that's one of your goals.
Which it was for me eventually. So if you roll and also insurances, that kind of stuff is also. We get preferential treatment on our workers comp.
For example, because we have such a long history. All of that. You roll that up together. That still doesn't equal like the purchase price.
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