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

But I, I, I will absolutely recommend that to anybody. And before I, you know, I've been in Chicago since 2011, so way before I bought Point B, loved it. And it's just such a fun way to see the city and you learn a lot and on and on, you know, you know, because you've experienced totally.

So this, like the leading tour is one of our clients. And, and they, they place a lot of media because they want to be seen in, you can probably guess, in the airports. Right? So, so whenever you come to Chicago in the summer, they're not going to show up in February, you know, but in the summertime you come to Chicago, you're going to see them.

And we put them on out of home ads, on billboards and stuff like that as well, or bus stops around the city, just anywhere that somebody that's coming to visit the city for the first time or whatever may be likely to see it. And so that type of stuff is the things that, hey, have we rebranded that, that architecture tour in a while?

No, it's, it's, it's been a while since they got, since they got branded, but we continue to do the media for them, which is great.

That's great. Joe, tell us about point B now. The, the kind of, the bullet points of the business. We understand what it does, but give us the, the metrics on the business.

Yeah, absolutely. So the first go round, I, I had a specific size that I was looking for. This time I wanted to go a little bigger and so I used, but I was familiar with the SBA model and so wanted to continue to rely on that if I could. And so I used the max SBA loan as basically kind of a limiting factor of sorts.

So that happens to be 5 million for anybody that doesn't know that. And so I knew, you know, you're looking probably for something, oh, between like 5 million on the low end to maybe 7 million on the high end in terms of their sale price. And so that's what I had sent and I, and I knew I was looking for an advertising agency that, that led with brand.

Again, regionally, it wasn't a factor. I, I didn't feel like I could make that a factor. But you know, again, like got lucky that the perfect target happened to be in Chicago.

That's not as random as it may was for anybody that doesn't know, like, Chicago is a gigantic agency space. There's tons of agencies in Chicago. So Chicago, New York, it was likely that you land in one of those spaces, but there's tons of great agencies everywhere, so it's always a possibility.

But. But yeah, ended up finding point B was right in that range. So it ended up being the, the deal got done. This isn't where the broker listed it, but the deal got done at about five and a half million.

And I, like I said, I just, I, I maxed out the leverage. So the structure was incredibly aggressive. Had 5% down, 5% seller.