Surviving a 2-Month Revenue Freeze in Year 1

um at veterans room so i believe by the end of this year will be well over 55 providers serving well well over a thousand veterans um and we've been you know at acquisition we were at 700 so we've grown and we're growing and and as a result of that we're constantly changing systems um changing optimizing our systems to help us work better but we we provide mental health support to exclusively…

And we say that we understand the journey that got them there. And we just want to provide that pathway to healing for them to reclaim the life that they want in the way that they want it.

we were able to kind of shortcut a lot of the negotiations and we just married on what value they were looking to get. And in that sense, it was about four times their EBITDA at the time. And the business itself was priced at 1.6 million.

$1.6 million was what we acquired the business for. And the way that the deal was structured, it was a combination of SBA and new majority capital being an investor. So new majority owned a certain percentage.

um of of the business um i i can say because i talked about equity and it's important so new majority capital owns 11 of the business and i and i do my subsidiary own 89 of the business and there's also a seller finance component as well that that was structured into that and yeah and then my own personal funds to support working capital um as well as you know just the the whole acquisition…

Okay, Chibuna, so the purchase price was 1.6. The total project cost was a little bit more. Tell us what the total project cost was, please, again, and then break down the sources and uses.

So 1.6, pure acquisition purchase price. Total project cost was a shade under $2 million, so roughly around $1.8, $1.9 million. of total project costs.

And, you know, in terms of just the funding, right, it was the SBA percentage, loan the value percentage that they often kind of benchmark their investment in. And then there was new majorities capital that which garnered them 11% of ownership. And then my capital, and also there was seller financing, roughly about 400,000.

So that kind of helped put the project to on its way, right, to fruition. And, you know, well, I also want to point out that, you know, post-acquisition liquidity was really vital for me.

So there was a part of that project cost was also $159,000 from our SBA lender as working capital. As I've mentioned, working capital was a trade-off that... happy to talk about that I made and one that if given the opportunity, I would do differently.

But there was that. And then some additional liquidity, personal liquidity that I had that I certainly knew that, again, post-acquisition liquidity is the number one thing that any small business buyer, especially self-funded, worries about, thinks about, tries to solve for. And we were fortunate to be able to solve for that. with the lender and also in my own case, some personal capital.