ETA·BRAINa Katyella project

Acquiring Minds

When a $2.8m Acquisition Is More Like Zero-to-One

Excerpts · 360 segments · ~1:15:05 long

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Sure. So we raised about half million dollars of equity. We had about 300,000 of working capital, and that was part of the SBA loan. We had a seller's note that was approximately 15%, and the rest was the SBA loan.

And the equity was friends and family. Talk to us about that experience.

Yeah, so like I said, I, you know, if you find a good deal, I think capital is easy to raise. Most of the capital that, or all the capital we raised were from friends that I had met through networking online. So most of it was from people that I'd met on Twitter before.

We found this, this, this company, and I reached out to a few of them and they were interested in investing with us. They're invested in this, this company specifically. And so it took us about a week to raise capital.

It wasn't very long. It was really, really quick. And I had the deck put together on what it was we were raising, the risks that, that were in, inherent in the company, how we plan to mitigate those, what the ROI was, what the moic, what the step up in capital had it all ready to go.

So it didn't take us long to raise when we reached out, this deck.

That you put together, I, of course now see a lot of these for independent sponsors mostly. But was this your first time putting together a deck like this?

No, because I'd done that for startups, right. So I was used to kind of putting together capital decks for raising. So. And, and you know, there's a lot of information that you can find online on what a deck should look like.

And at the end of the day, you just have to think, like, if you're an investor, what do you want to see? You know, what do you want to know? You want to know the risks of the business?

You want to know how much, how much money you're going to make on the capital you're investing? How long are you going to get it in? How long it's going to take for you to get that capital returned to you.

You're going to want to know, like, what's the market risks, how big's the market, what's the tam? So I kind of knew what an investor would want to see, right? And so I put that deck together, got some feedback on it, of course, and just sent that to the investors that were considering investing with us.

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