No SBA Loan and $75k Out of Pocket

So the, what did you say? The doubling of the Last few years. How did that surge in properties under management occur if not for some sort of outreach effort?

That's a good question. I think. So my seller is a realtor and perhaps his connections. He's a well connected person in our area and so perhaps that.

done under his ownership.

Yeah. So not really outbound, but professionalizing the brand. He had definitely professionalized the brand and brought it into the 21st century in the last five years.

Yep. So he was not a quote searcher, but he was effectively an acquisition entrepreneur. He'd bought this business, improved it and that was now selling it.

He. He was, yes. So he had, like I said, he had worked in the industry for 10 plus years and most recently worked for a competitor in our area and ended up leaving the competitor kind of for valid reasons and knew about guest houses, connected with the seller and, and bought the company. So at that time it was very small. But.

Yeah, Megan, you were going to tell us about the risk mitigation in the form of deal structure. Let's get into that. Because the deal structure of this is, is, you know, a key part of this acquisition.

Yeah. So the, in terms of deal structure, the company, like I said, was under 500,000 SDE. I bought it at a 2 times STE multiple. So pretty decent valuation. I was.

How were you able to get such. I'd call that more than decent. Is it because the size, the small size or what?

That's really low from. Not a number we're used to hearing.

We didn't talk about multiples when I made my offer. We just talked dollar value. And I think a lot of times sellers have a certain dollar value in mind.