Was really interesting because they would ship, let's say a grower in California would ship to Denver. Well, you're not getting that rack back. So they had a whole recovery network all around the country where they could get these things back.
Acquiring Minds
How to 4x EBITDA in 3 Years Without Growing Sales
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And it was just really fas. The economics of it were. Were really compelling.
So yeah, I found it like really intellectually interesting and I kind of bought into the story. That was really how it got started. The team at Aspen HR recently published a short white paper targeted at searchers Entitled A New CEO's Guide to Human Resources.
It lays out the key items you should be thinking about as you transition into CEO and owner of the business you bought. The link to download that is in the show notes.
Aspen HR is a professional employer organization or PEO which provides HR compliance, flawless payroll, robust HR technology and Fortune 500 caliber benefits all for a fraction of the cost compared to using multiple vendors reach out to Aspen HR for your complimentary HR diligence checklist and benchmarking analysis. Go to aspenhr.com or contact Jenny Thier directly at jennypenhr.com and how big…
Business was, was about a million and a half of EBITDA, little under 15 million in revenue.
So not too big that would be considered smallish today and probably maybe even a little bit smaller back then because I feel like the criterias loosened a little bit as search has gotten more competitive today.
Yeah, it's, it's. So a couple things there. Um, we had about 15 employees, so about a million dollars of revenue per employee, which was great. But I thought when I was buying it that it was about two and a half million of ebitda.
Unfortunately, those really nice owners of the business and I had a disagreement on a balance sheet item and we ended up going to court over it and we settled favorably for us. But, but that was rough. So I stepped into the business my first day, got introduced to the company, met the team, sat in on a production meeting, and then learned that there was this inventory discrepancy.
And immediately, like my, like the folks in the room said, I just turned white. And because I, I knew the working capital adjustments by heart, I knew everything and I knew that there was something wrong here. So I called the owners, we talked about it and, and you could tell it was something, something was fishy.
So unfortunately that turned into about an 18 month lawsuit. And that was a, that was my first real big challenge.
And in the outcome, or what you were pushing for was to claw back some of the purchase price, I assume.
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