Awesome. Joe. So and so before we get into your operations, as, as short as it's been these six weeks, there's, there's, you know, some good stuff there. We still haven't heard about the structure. We've heard about the purchase price, but not the structure of the transact transaction.
Acquiring Minds
How Business-Buyer Fit Led to 2.2x and No PG
Episode
Excerpts · 410 segments · ~1:33:42 long
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05:03 Joe's medical sales background13:40 Finding the equipment business18:15 Revenue and SDE breakdown21:14 High margins and pricing power26:04 Lumpy project revenue history37:13 Purchase price negotiation57:52 Deal structure and seller note1:11:53 Bank froze account post-close
You got not only a good purchase price, but a good structure on top of it. Let's, let's hear.
Yeah. So purchase price 1.35. I put down $120,000 in the deal is a seller finance deal over 10 years at a 7% interest rate. We have a standby of no interest, no payments for the first three months of the deal. And there is no personal guarantee as.
Well for people who might be new to this. If you're kind of apples to apples comparing this to an SBA loan, the interest rate would have been, I don't know where interest rates are now. I should, would have been higher.
Yeah.
Than 7%. So much more in interest or, you know, materially more in interest. And of course there would be a personal guarantee which for many people precludes them from using an SBA loan at all. So you, the amortization period of an SBA land of 10 years is considered long and roomy and generous.
And usually with seller notes, you're not able to get that long amortization. You did, you got Basically SBA is 10, you got 10 years. So 10 years, same, same nice long amortization, lower interest rate. No pg.
Yeah.
And, and so is this just another benefit of you being, you know, the right buyer for this business and, and, and the seller not having a lot of options?
Yeah, I think so. You know, I think I was the closest that he's got into selling it. Right. So it gave me a lot of, a lot of leverage and a lot of confidence that I can get the deal that I feel comfortable with. But then also in having con in the conversation that we had, he, you know, gave me a, gave me some information from a.
Because I think the broker was telling him one thing. But then, you know, being two sales guys, I knew the best thing to do was to be able to just get him on the phone and just have a conversation as to kind of, hey, this is kind of where, where I am. You know, I'm interested in the business.
But this is kind of where I feel most comfortable. And. And yeah, we ended up getting it done. And you know, in our conversations, because initially the standby was at six months, but that was the one thing that I decided to decide to change.
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