I mean I, I've, yeah, I, I, I always, yeah the cash flows were, were always mine and I would take them as I needed them. But you know, at the end there, yeah it's, I, I, I extracted what I needed and I was, yeah it was, it was time. I, I don't know how better to say it.
Acquiring Minds
Leaving Wall Street to Buy a $1m Manufacturing Business
Excerpts · 351 segments · ~1:30:24 long
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Yeah, well, I just want to underline there that you know how you figured out a way to step out, get, get out of a business that you are the owner, operator of without selling to private equity, selling to a strategic buyer.
And so it's, we talk in this world so much about exiting the business but we talk about it as if it's sort of a foregone conclusion that you can just sell the business and often you can't sell the business as we as we do know because there many businesses that we see that we don't buy and there aren't buyers for these businesses because they're not good businesses.
Not saying your business wasn't a good business but, but it, we shouldn't assume that it's just like that there's always going to be a buyer at all. And, and so you have, you have introduced us to a way of exiting yourself from a business without having a buyer out there in the market. You sell it 100% seller financed.
Yeah, yeah. That's a really good point. They both, they both kind of coincided. This person needed to go that way and I was able to exit if I ran a process.
I don't think it would have gone as well. I mean my, the numbers I came out with, the returns were good. I came out with. I, you know, I'm doing this math and I came out with 25% IRR and you know a two times MOIC.
But it's, but you know, I, if you ask me, you know, I, I feel like it was this, this pro. This business could have done much better if, if we ever got to see the whole idea of buying the bolt on and not being that I could have done better. So do I look at it like a screaming victory?
No. Do I look at as a, as what I look at this business as is I look at like I did it twice. I brought a business first and I grew it. Great. And then I acquired a distress business with one bad decision in the middle of closing that.
But then I built that up to actually again. So I built it. I've done it twice and had a good exit and had incredible lessons learned from it.
Well, we're going to get to those, a couple of those lessons in just a minute. So I'm going to condense kind of three themes of your, of your, of the document that you prepared into kind of 1 1ish questions which is
how
do you think about what you want to do next and the lessons of buying small or the size or being so involved in the business, how that plays into the model that you'd like to pursue next and your thoughts on the, on the path overall of buying businesses. So I think those are all kind of related.
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