Buying Small to Then Buy Larger ($1m SDE)

And the acquisition was like six years ago, so. So just awesome guys then. They had done a good job setting up this business.

Sonny, Ash had founded the business. He called it Studio Rendering. It eventually became Sonny and Ash, but he called it Studio Rendering because he would sit in, he was going to architecture school and he would sit in the architecture studio and do renderings because he was.

This is my gig. And so he started that company. He later brought on his cousin Sonny, who has some more business experience, and Sonny was able to grow it. And they, they really then started focusing a whole lot on hospitality design, which was a really successful direction for them to take the company.

And so that's, you know, a few years on, then that's when I acquired it and was a large part of what the company was.

And, and so what were revenues at that point and headcount and kind of, you know, behind the curtain of the business?

Yeah, yeah. So I, I bought that business for about one and a half million. The structure was 20% seller notes, 10% down. And then the rest on the SBA 7A, the revenues for the business.

The top line was about the same, a little under. It was about 1.3 million. The bottom line was about 400,000.

And the headcount at that time was, let's see, we had eight, I believe. One sales guy, Ash stayed on. Sonny stayed on for a transition of a couple months.

But then he rode off into the sunset. And then, and then the rest were artists, 3D artists.

And those three artists were in a studio. They were distributed around the world. Virtual.

What they were a little bit of a combination. So, so the, the seven or Eight that I. I should say there were additional freelance artists that worked over in Sonny and Ash.