Yes. Yeah, yeah. Great. And the partial ownership bit about the sba, just a reminder for the audience. Partial ownership simply means that the seller retains some piece of equity from anything, you know, as little as 1%. And that became much more complicated in the rule, in the recent rule changes.
Acquiring Minds
Building Trust as New Owner of a $3m Business
Excerpts · 392 segments · ~1:24:41 long
Short excerpts only — hear the full conversation on the publisher's site.
Where to retain. I believe it is to retain any partial ownership, the seller has to carry a personal guarantee. So which effectively neutralizes that structure. Although I'm hearing that in fact some sellers will accept it.
But you could have, we all thought that it was going to neutralize the structure because what seller is going to want to carry a personal guarantee like your seller for just having 9% of the business? That's way too little equity for way too much risk. Yes, exactly right.
And before that it was 20% where you had to carry a personal guarantee. That's why it was structured as seller. Is going to retain 19%.
Sure. Just to be below that threshold.
And by the way, it still is 20% for everybody. But the partial ownership thing applies to the seller. Yeah, correct. Great. Ruchik, this is wonderful.
Anything more to say about the structure of the deal or can we get into your tenure as owner? Yeah, just real quick. You know, it was a pretty standard deal other than that you had working.
Capital incorporated in it. In the deal structure there is a two year standby on seller note, which also was a pretty, pretty sweet part of that deal.
And that's about it. Yeah. And how liquid were you? How much of your own personal balance sheet, your family's balance sheet did you put toward this project?
About 30%. So not, not, not too crazy. Yeah. Oh, great. Okay, great, great. So you have, you had, have and had some assets? Yeah, yeah, yeah, I owned a house and yeah, I had some investments and stuff like that.
Yeah. Great. How has it gone from being a Q of the cpa, you know, in the, in the bowels of a big, big accounting firms, to owner of a blue collar small business? If I was to say that it, it was all hunky dory, everything went great, I'll be lying. It's been a roller coaster of a ride, you know, because I did not.
Have any understanding of this industry or experience in the technical elements of this business. It took me a while to get on my feet. Although I must say that the one.
Want what comes before or after? Hear the full episode on the publisher's site ↗