You did see that there was a way for an individual to potentially do something like this at a smaller scale. That's right, yeah. What I saw was given the exposure. To private equity and the thought process, sitting with them in their management meeting and working very closely with them, I.
Acquiring Minds
Building Trust as New Owner of a $3m Business
Excerpts · 392 segments · ~1:24:41 long
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Understood what is it, what that exactly they are looking for not just from.
The operations standpoint, but also from the minimum financial standpoint, like the revenue and the EBITDA and everything. And I found a little sweet spot. There that they were not really active in.
They thought that was too small for them, but it was too big for somebody with sufficient cash to just buy and run type thing. And I was like anywhere between 700 to a million dollar fibida. They were not playing in that range.
They were playing it anywhere above a million, million and a half of ebitda, whereas a off the street buyer was playing lower in that range. And again, bear in mind, I did not know about SBA or of course. Because here we all are.
There are a lot of us right in that range. Right, right. It's funny you call out that range because that is precisely what everybody listening wants. Right, right, exactly.
So this was all through education and. Kind of analyzing how they do their business and what are they looking for. So I'm like, I personally came across a few businesses that they passed on.
Which had all the qualities but the minimum financials that they wanted. So I'm like, okay, they're passing on these opportunities, which are not bad opportunities. But Ruchik, if you didn't yet know about search and eta, how did you contemplate buying one of these businesses in this kind of dead zone as you saw it?
I did not. To be honest. At the time I was still thinking, I'm like, okay, there is potentially an opportunity and coming from Australia, I was. Not exposed to, you know, any government program that will be supporting a business buying process. So it was always like a seller.
Note and you need to have at least 50% of cash available because seller would not accept a loan be a more than 50% in general ways. So you know, it was difficult. But after coming here I'm like, okay, this is potentially an opportunity if I.
Can find probably a partner or something, you know, or somehow figure out a way to make it work. And then I started researching about it and at that time I got introduced to your podcast. You know, I came across the HBR guide which helped me immensely and I'm.
Like, okay, this is not as far. Fetched as it seems. You know, it is possible.
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