Yeah, they followed him right into the garage bay adjacent to theirs in their facility because he had already had a few hundred thousand dollars worth of machines already set up. So that was premeditated. Now, to be fair, the.
Acquiring Minds
The 7-Year Collapse of an SBA Acquisition
Excerpts · 473 segments · ~1:38:55 long
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I was aware of that going in. I was aware that this guy was going to leave and go on his own. I was unaware that it was next door to the second biggest customer.
And I mean, if I had known differently, I think that probably would have made my decision to go forward change maybe. And I also, obviously, like I mentioned before, I didn't understand how that work flowed through the P and L and just how significant it was because it was, it had been drilled into me. 10% of sales, 10% or 15% of sales for customer concentration is the acceptable limit.
And they were right there. I was told that this account was super unprofitable. And then when I went back and I looked at the data in the ERP system, like, wow, this is the most profitable stuff we have in the shop.
Wow. Wow.
Okay.
All right. So you lose the key guy in. In 10, 15% of revenue, which represents half of Ebitda in the first six months.
Yes. Well, in the first month.
Oh, that was the first month.
First month, yeah.
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