Bot a small dying trades edu company, now trying to grow 100%
Joined February 2024
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9 months post-close on first self-funded search deal, a $300k EBITDA professional edu company bought for 3x:
-standard advice to buy >$500k EBITDA is totally right. I take out >$200k tc including family health insurance, and the resulting (slight) cash-burn is stressful + brutal
savage self-criticism, as he's likely one of top operators in his state's industry already.
very scary for people like me coming into search from stock spreadsheet world. even self-reflective PE guy with good experience in real companies starts at D- level for years apparently.
This doesn’t make for a viral Twitter thread, but I wrote a long discussion on if buying a small business was actually worth it for me.
If you’re honestly considering this path, I’d suggest starting here rather than with BizScout’s engagement bait.
bigdealsmallbusiness.substac…
Amazing hiring call, found perfect candidate for a top growth opp after dozens of easy No's over 3 months. V likely >10% revs boost.
For one of the first times, feeling WAGMI, and 100% growth "guidance" achievable next year.
Now my balls will probably get kicked again this pm.
After moving from investor to operator seat last year, increasingly judging most of my old investor friends as lazy, "low agency," and unaware of 99% relevant AI use-cases.
And I was lazier than them when we worked together! RIP the vanishing beautiful long-only flaneur life.
Bidding 2x on a shrinking bolt-on yesterday, with $40k LTM EBITDA down from $60k peak.
"We turned down an offer twice as high before going to market"
I don't believe you, but maybe somebody does want these and there is occasionally a tiny bit of competition
my two real jobs as president of acquired co are automating systems and hiring.
automating is just yelling at claude all day, and basic stuff like outsourcing materials printing vs. doing it all in-house on crappy slow consumer inkjets 🤡
hiring is really difficult and the most
he would start PT with us while continuing to run his own contractor. 20+ years experience, entrepreneur, top trade license in his state.
our next hiring step is a visit to one of our classes and dinner. we book him two nights at hotel, send all materials for class, I get ready
-if you buy from bad seller, but inherit great employees, and then you want to grow fast, you need to pay them a lot more immediately
the ebitda your bid capitalizes should include higher-salary adjustments
remember, no competition for tiny dying shitcos!
did I do this? no