ETA·BRAINa Katyella project

Acquiring Minds

One Year, 3x Revenue, and a Clear Path to $15M

Excerpts · 468 segments · ~1:33:18 long

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And there's actually another piece of the deal that we didn't talk about, which was the additional money that you brought and put on the balance sheet. Tell us about that, please.

I mean, if you look at, where's the paper? Yeah, so I put in, here it is. So over the $450,000, I told you that he was doing cash accounting.

So he had like maybe $225,000 in his account, give or take on average, because I got to see all his numbers. And when you do cash accounting, if you had that much money, then you don't worry about it going up or down. That's how he just functions his business.

I changed to accrual. So I figured I could do half as much. So I think I put like 125,000 into the account they want to start covering payroll and everything.

So it was 450 plus 125,000. So it's 575. And then as the business grows, after I spent the first month getting the first couple of jobs, then that accounts receivable starts growing.

So I had to add more money into there. I think overall of my own cash, I did put all the 750K. Then I got a business line of credit for another 300,000.

And then I got another line of credit for 150. I've only put 150,000 of that line of credit into. And it's all in the accounts receivable.

I mean, for example, right now my AR is 733,000. 230,000 of that is my net profit stuck in accounts receivable. That leaves 600,000.

I have 120,000 in accounts payable from distributors that I haven't paid yet. So that takes my working capital down to 480,000 that I actually have in there. Okay. $170,000 of that $480,000 is my initial AR that came with the company.

Then you got $310,000 left. $160,000 of that $310,000 is my line of credit that I have in there. And then the $150,000 is my money.

The last $150,000 is my money. Okay. That's how it's grown over time.

Okay. Well, thank you for this transparency. Wow, Enrique, it's great. But net it out for us, if I press you to say, like, the effective price to buy this business.

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