And they're like, oh my gosh, like this was worth your 2x step up already. And I'm like, right, right. How did you, how did you know?
Acquiring Minds
The Dream Outcome: From $300k to $5m EBITDA
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Well, because we had literally the same thing happen to us and we're just going to give you the same lawyer, right? And, and you know, I don't think that they realize it until they see, hey, you and Dave have run real companies before and you know, we're gonna, you're gonna help us not lose, you know, a million dollars, you know, by using AI to do takeoffs, which is one of the things that we did…
So I think our advice is, you know, is, is great, it's worth it. But it's funny that you say that. It's, it's when you say that the terms are better than mark or better than market.
We had a lawyer at one of our deals who literally told me that, said, you guys are the worst investors I've ever seen. Like you're taking advantage of my client who's the searcher. And I'm like, okay, well I told the searcher, sounds like you got an investor.
Who? Your lawyer. Your lawyer says I'm terrible, right? Like, you know, and, and the lawyer's like, well, I guess, I guess my role is to, not, to not negotiate the deal, but to write and make sure that the deal terms are legal. I'm like, right, you know, fast forward, you know, we're doing great with that company, right?
So it's not that the deal terms are bad because all the things I told you I forgot to mention will have us have a catch up provision. So once we make that, every dollar goes to the searcher until we get back to parity. So they get back to parity really fast.
And the way I tell them is, look, Will, if you were one of our searchers and I said, will, you didn't grow the business at all. You just ran it as a CEO. You still got paid your CEO salary.
So why do you think you earn 60% of the equity if you didn't really grow it? Well, but you know, I had the pg. Yeah, but you know, I put the money down and the company paid the loan off.
Like you didn't have any personal, you know, you didn't do anything.
Right?
And so I know that's harsh sounding, but it's kind of the reality, right? It's like I need the searcher to know, hey, I'm expecting you to grow this thing, right? We, we underwrite it at zero growth.
But if I thought that it was going to be zero growth, I wouldn't invest in it, right? Like yeah, 22%. They're like, well, but you're making 22%. Well, but my debt fund makes, you know, I think our gross is 25% right now, right?
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