It sounds easy when you say it like oh, you just do the upfront stuff and you take the equity. But the upfront stuff, like I've worked with partners and it's taken 14 months and multiple deals dying, coming back to life onto the next one, dies three times, comes back to life finally close like this problem surrounded. It's, it's a long process, it's very difficult at times. So it's got to be…
Acquiring Minds
How to Own 20% of Multiple SMBs
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Regular listeners will, will know that. Well certainly that it's hard to buy a business. The so now kind of flipping to the other side of this argument, which is not that you're charging too much, but that you're actually sticking your neck out.
These people that you work with, there's no formal agreement, or at least there wasn't for these early, these first few engagements, as I understand it. So how did you protect yourself from somebody working with you? Like you said, you know, There was a 14 month one, somebody working with you and you're out there doing all this hustle, all this searching for them.
You know, all the stuff that we talk about on this podcast, you're doing all of that work and then they, this, this partner of, this future prospective partner of yours, just saying, I don't, I just, I change my mind.
Or you bring them what you consider good deals and they say no to everything because they're too picky or you know, all the ways that this could end in an unconsummated transaction and you just spend an inordinate amount of time on them. How do you protect yourself against that? They have no skin in the game, to put it.
Yeah. Yes. I mean it, it happens. It's happened before. There's two ways it can happen.
One is they just burn out. They don't want to do it or they're too picky. When that happens, it's fine.
Because for me, I can't force anyone to buy a business. I don't want to put anyone in a business and have them run it and give them a PG and they're not comfortable. So if, if they end up backing out because they just get cold feet or something.
Like, it's annoying for me for sure, but I have to respect it. And what's the alternative? Like I can't force them, like I said.
Well, the alternative would be, would be you filter out maybe unserious people by saying they got to put 50, 50 grand toward this upfront sort of thing.
Yeah, and I've thought about that, but I just, it, it feels too, it feels like it, it's misaligned then. Right, so if I take 50 grand up front and then what if we don't find a business? I have to give them that back.
So then like I'm incentivized to find a business at all costs, even if it's not good. Like that doesn't. I'd rather just be like genuine. And if I get, I'd rather be the one getting burned.
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