So less about kind of coming up with like a Super bowl, you know, creative campaign, but more of like, okay, the data is telling us the Consumer wants this. So how do we structure our strategy to match what the data is telling us?
Acquiring Minds
Acquiring a $7m Niche Marketing Agency with 50 Employees
Episode
Excerpts · 346 segments · ~1:21:52 long
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06:24 Rob's retail and Call of Duty background16:12 Geographic search in Greensboro22:15 Proprietary networking tactics and lessons30:16 Finding Sales Factory via Axial43:46 What the agency does (PLRs, research)50:36 Deal structure and quality of earnings59:09 Equity roll and the 20% tripwire1:05:24 Change management and post-close lessons
Great, Rob. And the numbers of the business?
Yeah. So I bought this business with four times multiple on ebitda. It was actually down from. It was marketed at five and a half.
And I can share a little bit more about why that got restructured. I did a quality of earnings, and then in terms of just the deal at close, 50% was in an earn out, 40% was cash at close, and then 10% was an equity role. So that was big for me that Jed was willing to be my partner, enroll some equity and have learnings kind of across the deal structure from that process, though.
Okay, this is great. We're going to unpack this. So no sba.
No. I think the marketing agencies. You know, one thing that's, you know, a nuance here is people are the biggest asset in the business, so that can be difficult to lend against. And so I did, you know, I did go the route of, you know, heavy earn out.
Did get a commercial loan with some personal assets as backing and then. Yeah. Having the equity role as well.
Oh, you got a commercial loan for the 40% cash at close to some degree.
Yeah, most of that was from a commercial loan, but there was some cash out of pocket.
Oh, okay. Okay. And, well, we haven't heard the numbers of the business. What can you tell us there?
Yeah, so the. The top line of the business is about 7 million. Okay.
And can you share what earnings look like or margins roughly?
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