The business, as I recall, is in Eastern Finland, near the Russian border. You are in Helsinki. It's eight, it's in fact, eight hours of difference between the two of you driving.
Acquiring Minds
$250k SDE Acquisition: Limited Downside, Big Upside
Excerpts · 254 segments · ~1:13:34 long
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And then your family's manufacturing business is closer to you, but not in Helsinki. And, and in Western Finland, five hours from you. And so the idea here was that you could, as you said, co locate, move the new, the business that we're here to talk about that you're acquiring into the facility of your family business and create some, some synergy there, some economies of scale, bring it closer…
And, and that made sense financially because as you said, your family business is on the cap table. In fact, they're a significant owner of this business. You, you, you partnered with your family business to acquire the new business.
Do I have all that right? Correct.
Yes. So, so they are, they are the maturity owner and they also rent space for, for Finisi. So the operating company as well as staff. But these are two sort of distinct companies with their own P and L.
And basically there is no sort of subsidies or anything like that. So these are sort of very distinct companies with their own businesses and share very little besides sort of the same space between them.
And did you communicate in advance to the sellers that you would move the business? And what implications did that have for the business and for employees, et cetera? What I mean, that's pretty disruptive, right?
Correct. In fact, when they listed the company, they, they, they mentioned that it is something that the, the potential new owner could do just to move the factory because they were aware that the location is perhaps not ideal and it could limit the number of potential buyers. And because of the fact that it is a relatively simple manufacturing process, it was relatively easy to actually move.…
It was a bit more Complicated than that. But it was relatively fast, so they were quite open to that idea. Of course, they were also openly sharing the fact that the employer employees that they had were in a situation where they would probably not want to move if we decide to move to production.
And how many employees are we talking about that would essentially move, lose their jobs?
It was basically, besides the. The owner and. And his wife, there was two employees.
Okay. And in fact, I assume those two employees did not come along.
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