The Magic of Low Multiple + Growth

The acquisition of today's guest was sitting on the market for over a year, which may frustrate some of you searchers in DFW when you hear what a gem it turned out to be. David Graf himself had to get comfortable with it due to the 96 year old seller's non negotiables that there be zero seller note and no escrow. Also, the listing sim was a single page black and white word document so other…

But David did not dismiss it and he has been rewarded for looking closer. Listen for how he structured the deal, specifically the reps and warranties insurance that mitigated his risk in lieu of an escrow and his wholesaling of the business's real estate. This latter maneuver, akin to a sale leaseback, enabled David to acquire a business with $750,000 of adjusted EBITDA with for $2 million.

Even that's 2.7x and if that weren't good enough, David has grown EBITDA 58%. In his 19 months of ownership. That low multiple that he paid means lower debt payments and when you add in substantial earnings growth, you have a business acquisition that is already throwing off a lot of cash.

Finally, listen for David's insight on growth in small businesses and how it's underpriced. Here he is David Graf, owner of Danhard and it is Graf, not Graf. As I pronounce it in the interview.

Apologies to David Webinars Attorneys Bill Barlow and James David Williams return for an office hours webinar focused on negotiating working capital. Bill and James David will cover techniques to get over common deadlocks on working capital, which is such an important feature of your acquisition but one easily misunderstood by your seller.

Bill and James David will explore common frameworks for unique working capital situations like long term projects or subscription based revenue,. And they'll explain how to do all. This while staying in compliance with SBA guidelines.

The webinar is negotiating Working Capital it is tomorrow, Tuesday, May 26th noon Eastern. Link to register for the webinar is right at the top of this episode's show notes or on the Acquiring Minds. Homepage acquiringminds Co.

Then Thursday, SBA loan broker Heather Anderson will host a webinar on the new $10 million limit for SBA loans. You may have seen that eligible borrowers may now combine SBA 7A and 504 loans for up to $10 million in SBA backed financing, which doubles the previous cumulative limit. Heather will lead a webinar on these newly expanded lending limits and what the changes mean for you, if anything,…

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 is an. Awesome opportunity for many entrepreneurs and on.

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The Pioneer team has closed more than 100 SBA loans, averaging timelines well below industry standards. Founder and owner Matthias Smith and COO Valerie Stash bring over two decades of SBA lending experience. Matthias and Valerie have built a team that meticulously works your deal from underwriting to close.