How 1 SBA Loan Brought Down 2 Businesses

On the deal and the operations and that someone that might be interested in joining, but wasn't sure yet. And yeah, that's kind of the. The first meeting. Met the broker, the sellers, and then we went from there.

And you liked what you saw? Tell us about the business.

That. About 900,000 in SDE. So it was, it was. It was a good performing business. I think we paid. I want to say the Multiple was like 3.25 or something like that.

We bought it for 3.15 with about a $500,000 seller note. It was two seller notes. Because it was two sellers, but it did well.

It performed really well. It didn't have the ton of seasonality because they had a really good split between now it's project based work and not. They didn't do maintenance.

There was no recurring revenue. They had what I guess we would call like reoccurring revenue. Where a lot of their work was for custom home builders who would just say, hey, we have a home, we're building, come through the landscape and then homeowner.

So that healthy split between home builders and homeowners and pretty, I mean the average project at that point was like $80,000. So you know, pretty high end stuff. The, the seasonality was.

It was actually pretty well adjusted for, because of the customer concentration. So home builders here in Austin build a lot during the summer in preparation for a lot of people moving in, wanting homes, wanting to buy homes before school starts. And then during the fall, in the spring, homeowners are kind of building a lot more.

But during the summer, homeowner work goes down a lot because at least our clients are, you know, in Tahoe or Telluride or Jackson Hole or wherever they go spend the summers because it's way too hot here. But then the builders pick up. So not a lot of seasonality.

I kind of like that. Not a lot of customer concentration whatsoever. Yeah, it was, I think the business was, was really good.

And now that you are on the inside, how do you reflect on the quality of revenue? The fact that it's reoccurring or, or project based. The fact that, that it's discretionary at least when you're selling to, to the, the residential customers.