Comfortable Concentration for a $800k SDE Business

Today's story is a study in not judging a book by its cover. Phil Koller bought Roman Enterprises, an automotive paint distribution business. Now, Roman had about seven customers.

It had essentially a single supplier and it had one, yes, just one employee. Undeterred, Phil looked closely at each of these features and more and decided that he could accept and or mitigate the risk. And there was lots to love about Roman Enterprises.

I already mentioned that single employee, a feature that lives in both the pro and con columns. There was also the $800,000 of SDE, a reasonable valuation, sticky relationships, and business buyer fitness. Running this business well is all about supply chain and inventory management and Phil had deep experience doing just that.

Here he is Phil Koller, owner of Roman Enterprises how much will I actually make if I buy this business? That is one of the most common and misunderstood questions that searchers ask. Well, today, Thursday, January 15th, Chelsea Wood of Acquisition Lab will walk us through how to shift from a traditional W2 mindset to an owner's mindset.

A mindset that's focused on flexibility, tax efficiency and long term wealth, not just salary. Chelsea will cover why replacing your salary is the wrong question and what to ask instead. What makes up total owner benefit?

Spoiler it's more than just the salary in a simple framework to help you estimate your real take home pay. Post close that is today, Thursday, January 15th, noon Eastern. Link to register is right at the top of this episode's show notes or on the Acquiring Minds homepage.

Acquiringminds Co. Welcome to Acquiring Minds, a podcast about buying businesses. My name is Will Smith. Acquiring an existing business is an awesome.

Opportunity for many entrepreneurs and on this. Podcast I talk to the people who do it. 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 jenny@aspenhr.com. Phil Koller welcome to Acquiring Minds.

Thanks Will. I really appreciate you having me on.

Phil, you bought an unusual business. I'd say one employee customer concentration, supplier. Concentration, but quite profitable.