Rolling Up an Industry with 1.5x Multiples

You could argue that that discount is, is, is, is the market, you know, a natural price that they would find in the market for the realities of the transaction.

Yeah, I mean you are correct in the sense that most of the time when they do sell, they sell it to a nail tech who are ready to become a business owner. They probably sell it to another Vietnamese person. So, so that's why they price it.

Like the large scale. I don't know if you've seen these 30 to 50 pedicure chair, salon, right. Like they operate like an actual mini enterprise.

And these are going for, you know what you would see 3x4x because most of the time these bigger businesses have already built that into the system. They have a manager, they have probably two or three receptionists. The owners are no longer doing the nails, they're running the business now.

So it's a little bit more sophisticated business model now. So that is that get built into the price. Whereas the small size and the mid size is kind of in this weird space of okay, like it's a business but it's still a mom and pop run business.

So it's. So there's a little bit of like okay, you need to discount it like you say a little bit so that someone else is willing to put in the work by, by buying this business and continue to operate it.

Buying a small business sounds simple. Find a company, due diligence, get a loan close. In reality you wear every hat just to get the deal done.

And then the moment you close, you have to throw those deal making skills out the window and learn how to operate. You shouldn't have to rebuild this infrastructure from scratch and you definitely shouldn't do it alone. That's why Walker Deibel created Acquisition Lab.

What started as an accelerator has expanded into a complete ecosystem for acquisition entrepreneurs. Over six years, the lab's 1200 members have acquired over a billion dollars in businesses. The Lab puts everything under one roof.

An active community, deal reviews, post close services, and a dedicated fund helping experienced operators buy larger businesses. If you're serious about buying a business, come see why Lab members have a 40% success rate. Learn more in the show notes or@accentlab.com acquiringminds.

Okay, Truc, great. So that was the first business. Why don't we. While we're talking about the acquisitions, let's just hear also about your second acquisition and then we will circle back to all of the unpacking the business of nail salons in general. So the second one please.