SBA Acquisition to $9m Cash Exit in 5 Years

So something where 11 of those employees was a tech and one of those employees was sort of a receptionist slash order taker sitting in the office.

And presumably he was looking to retire not yeah, he was looking to retire.

You know, Enzo Technologies as one of the leading IT managed service Providers serving the search community led by Nick Akers, an acquiring minds guest who bought the. 35 year old business. The team at Enzo regularly works with searchers and their acquisitions.

And one feature of acquired businesses that Enzo is seeing over and over is the need to implement cybersecurity promptly during the transition. So many acquired small businesses either have glaring vulnerabilities, lack security best practices or both. That step one to de risk the deal you just closed should be addressing these issues.

Inso is your full service IT MSP form for post close stability. They assess your target, surface the biggest risks in plain English and give you a day one through 30 plan to cut exposure, prevent downtime and even find cost takeouts like bloated telecom bills. Check out enzotechnologies.com I N Z O or email Nick directly at nick@enzotechnologies.com.

And going back to this point of your email triggering him to engage a broker. Did it end up being a competitive process?

So they definitely did shop the deal. I've met people who said they looked at the deal in retrospect, but it's hard to know. But it was a deal with lots of issues that, you know, the owner was heavily involved in the business, which you know, for one crosses off a lot of potential potential buyers.

It was a deal where there were significant customer concentrations. So the biggest customer for RG maintenance was Public Storage, which is a big publicly traded national REIT real estate investment trust that owned at the time roughly 48 self storage facilities in the state of Colorado. So something where that was, you know, a big issue for any potential buyer.

There's some cyclicality in the business. So about 25% of the business when I bought it was tied to the construction of new self storage facilities. So putting in gates and keypads.

But what I really liked about the business was a highly recurring revenue outside of that construction side of the business where you wouldn't know which gate in the given day was going to get hit by truck. But a relatively large percentage of these gates were hit by a given truck in a given day.

So sort of actuarially like an insurance company recurring revenue, they were high margin deals based off of the physical gate themselves being a relatively high dollar item but relatively cheap for us to fabricate ourselves. We actually made it in house out of raw steel in the shop and then brought it to the site and installed. The payer was typically an insurance company versus public storage…