The reason why they selling, they tend to gossip quite a bit whenever they go buying supplies. So she has a lot of knowledge of which one they selling, why they selling as well as give me a really good understanding of what the revenue just based on how much stuff they purchase from the supplier. So she became one of my deal sources.
Acquiring Minds
Rolling Up an Industry with 1.5x Multiples
Excerpts · 462 segments · ~1:55:30 long
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Right. So through her I learned of the things different businesses that came up for sale. And the first one that I decided to go after, it came up in the location in South Austin, which is where I'm located. So it's relatively closer to home for me.
It was the right size that I wanted to go after, as well as the purchase price that I'm comfortable with. So that's why I decided to reach out to the seller. There was a couple in their late 30s, so they have a personal reason they needed to sell.
So when I went and visited the locate, the salon is. It's nice. It ha. And then when I look at, you know, first glance at the tax filing for the previous year, the numbers look right. So I decided to give them, hey, hey, let's.
Let's pursue this. So send them a letter of intent. And then really got the paperwork to go through the numbers and then apply.
Let me. Let me stop you there. So you found this business on biz by sell or via your contact at the nail supply store.
She told you it came up on Facebook first. One of the thing that I have told many people is there are so many different Facebook groups for everything. Right. So small business owner in every kind of industry will have these Facebook groups.
So I join a lot of them, and then they constantly post questions or seeking advice. You know, they want to share about the industry, but once in a while they will post like, hey, I'm looking to sell. So this one came up on Facebook group, and then I validated that with my friend who is this owner of the nail supply store.
And she's like, yeah, like they told me they look in the cell, and this is the reason why. So that's what. That's when I decided to go visit in person. And once that happened, it looked good.
Just my first impression of the salon. It looks nice. It has a lot of potential. Location was great. So that's when we decided to enter the loi and truck.
Tell us about. So the kind of bullet points of a salon. Size Chair. Chairs. Right. Number of chairs. And then, of course, the typical financial metrics. How do you evaluate other than the esthetics you walk in?
It's n. How do you evaluate a salon? What are the metrics? And what did this one have?
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