Acquiring Minds

Due diligence pro Ahmed Raza on the 3 key things to evaluate when buying a business in e-commerce, SaaS, or content.Themes from Ahmed's interview: 3 things to evaluate in an e-commerce business you might buy 3 things to evaluate in a SaaS business you might buy 3 things to evaluate in a content/affiliate business you might buy Reach Ahmed at:LinkedInHis firm, Rapid DiligenceOfficial episode page & full show notes at AcquiringMinds.co:Top 3 Pitfalls When Buying an Online Business

Charles Barr just acquired DiMartino Plumbing. He considered HVAC & electrical as well but plumbing was the sweet spot.Themes from Charles’ interview:Buying a small business as a path to wealthWhy plumbing?Why he decided against HVAC & electricalNumbers on the business & his dealWhy he’s getting his plumbing licenseReach Charles at: LinkedInHis acquisition, DiMartino Plumbing@CapitalistChuckOfficial episode page & full show notes at AcquiringMinds.co:Why Plumbing Companies Make Awesome Acquisitions

Vivian Chen bought an abandoned online business for almost nothing, then grew it to $5k/mo — while keeping her day job.Themes from Vivian’s episode:Years of false starts before deciding to acquireAdvice to side hustlersParallels between buying an online business & real estate investingWhen to go full timeKnowing yourself is key to your journey as an acquisition entrepreneurIt takes longer than you expect...…so get startedReach Vivian at: LinkedInModern InnkeeperOfficial episode page & full show notes at AcquiringMinds.co:Buying an Online Side Hustle (for Less than $5k)

Chris Edwards' first 6 months as new owner has been a “bloody knife fight.” But things are looking up, with the business projected to profit $750k this year.Themes from Chris’s interview: Chris’s advice for new owners (be a shock absorber) What made Chris a competitive buyer Solo buyer vs. having a partner How to implement changes as a new owner (hint: slowly) High stress, high stress, high stress…less stress “The worst decision he’d ever made”? Reach Chris at:@toph_edwardsHis flooring company, Affordable Flooring WarehouseOfficial episode page & full show notes at AcquiringMinds.co:How to Survive Acquiring a $3.5m Flooring Business

Brute Force thrived during COVID, but 2021 hit hard. Sales plunged 60% in one month. Mike Brown bought it to fix it.Themes from Mike’s interview: Why Mike was "acquisition curious" and what made him pull the triggerBetting on yourself Unsexy local businesses vs. e-commerce How the iOS privacy updates are affecting e-commerce How Mike handled sales collapsing 60% from May to June Adversity making you -- or your business -- stronger (h/t Jocko Willink)Reach Mike at: LinkedInHis e-commerce company, Brute ForceOfficial episode page & full show notes at AcquiringMinds.co:Acquiring an $8m Distressed E-Commerce Biz

Cassi Niekamp didn't know anything about fencing when she acquired Bowden Fence. But she turned this to her advantage.Themes from Cassi’s interview: Bringing a student’s mind to your acquisition Using vulnerability to earn trust Doubling production in 60 days Building rapport with the seller Buying the first business you see Reach Cassi at: LinkedInHer company, Bowden FenceOfficial episode page & full show notes at AcquiringMinds.co:Buying a $1.2m Fencing Business & Earning Trust Quickly

Mike Gardon bought websites to be his own boss. His best acquisition does $100k/mo — and he bought it for 5 figures.Themes from Mike’s interview:Why buying a website is better than building from scratchSEO & affiliate websitesOpportunity for smaller buyers of affiliate sitesThinking about your websites like a financial portfolioThe importance of a foundation businessReach Mike at: LinkedInHis personal website, michaelgardon.comCareerCloudBonus: Quotebook, a project of Mike's he can pursue thanks to the freedom provided by his businessOfficial episode page & full show notes at AcquiringMinds.co:Making $100k/mo by Buying Websites

5 tactics to boost sales of acquired e-commerce businesses — and other insights from e-commerce aggregator TCM Digital.Key themes from Golan's interview:There is still plenty of room for solopreneurs to made good e-commerce acquisitions.Prices of e-commerce businesses have gone up, but still good value there.5 tactics TCM uses to quickly boost sales of the e-commerce businesses they acquire.TCM Digital is an e-commerce aggregator based in Tel Aviv that has acquired 28 e-commerce businesses to date.Reach Golan Manor at:LinkedInTCM DigitalHammock Sky and Lens Ball are two of the TCM brands mentioned in the interview.Official episode page & full show notes at AcquiringMinds.co:Buy an E-Commerce Business: Tips from an Aggregator

How an outsider started with little money and bought 12 translation agencies in 6 years, aiming to reach €5m in revenue.Key themes from Cédric's interview:Acquired a translation agency in 2015 that was doing about €1.5m annually.He had little of his own money at that time and took a large loan to make the acquisition happen.6 years later, he's acquired 11 more agencies and is aiming to reach €5m in annual revenue by the end of 2021.Reach Cédric Sigoire at:LinkedInHis translation agency, DEMAN TranslationsOfficial episode page & full show notes at AcquiringMinds.co:€5m a Year by Acquiring Translation Agencies

With 6 e-commerce acquisitions and counting, Kelcey Lehrich has built 365 Holdings rapidly over the last 4 years.Key themes from Kelcey's interview:E-commerce as a path for acquisition entrepreneursOther businesses Kelcey likes for acquisition entrepreneursBusiness-buyer fitPersonal guaranteesReach Kelcey Lehrich at:@kelceylehrichLinkedInHis e-commerce holding company, 365 HoldingsThe 365 EIR Program (+ great article on entrepreneurship through acquisition)Official episode page & full show notes at AcquiringMinds.co:How to Build an E-Commerce Acquisition Company

An early buyer on MicroAcquire, Spencer Scott acquired a SaaS for $280k. He analyzed the deal like a rental property.Key points from Spencer's story:He wasn't looking seriously for an acquisition but saw an opportunity and grabbed it: Median.The tech is what impressed him most. He couldn't believe the product was a small indy SaaS built by a couple developers.Median was selling for about 4x revenue, which was $75k ARR.Spencer learned the hard way to include teeth in an acquisition letter of intent.Reach Spencer Scott at:@AKASpencerScottSpencer's SaaS acquisition, Median.LinkedInOfficial episode page & full show notes at AcquiringMinds.co:Acquiring a $280k SaaS on MicroAcquire

Dan Spracklin acquired a septic pumping business doing $1M annually, then grew it to $3M and margins to 30% in 2 years.Key points from Dan's story:Gray Brothers was a septic pumping business founded in 1929, run by Dan Spracklin's father-in-law.It was generating about $1m per year in revenues from 22,000 customers. Septic pumping companies typically have margins of 10-15%.Dan & his wife added adjacent septic services to Gray Brothers and improved operations. Within 2 years, they'd pushed revenues to $3m and margins to 30-35%.Septic pumping is a great lifestyle business for existing owners: low customer churn, high barriers to entry, recession proof.It's difficult for entrepreneurs to start a new pumping businesses, so best to buy out a retiring owner if you can find one.Reach Dan Spracklin at:@DanSpracklinGray Brothers, his septic companySoMax Circular Solutions, the sewage conversion offshoot LinkedInOfficial episode page & full show notes at AcquiringMinds.co:Buy a Septic Business & Make $3m ARR

Two brothers took over a 110-year-old business in a stagnating industry. 7 acquisitions later, the future is bright.Key points from Ben's story:Ben Grossman & his brother pivoted their 110-year-old family business from printing to promotional products.The strategy was executed by acquisition: 7 of them from 2013 through 2021.Ben discusses the importance of treating sellers well to build a list of happy sellers that he can show future sellers as a reference.He explains how he uses suppliers to source leads on potential acquisitions.He also explains how to effectively work with business brokers.Reach Ben Grossman at:Follow Ben on Twitter at @bigrossman.He also maintains a personal website that lists all of Grossman Marketing Group's acquisitions at bengrossman.info.LinkedInOfficial episode page & full show notes at AcquiringMinds.co:Pivoting to Swag in 7 Acquisitions

How an online entrepreneur teamed with a family office to acquire & grow a portfolio of 15 websites for over $2 million.Key points from Paul's story:Paul Lemley teamed with a family office to source, acquire, and grow a portfolio of websites.They ultimately acquired 15 sites across 3 acquisitions, spending between $2 and $3 million in total.Paul highlights 5 lessons from this recent foray into the website deal world.Reach Paul Lemley at:@palemleyThe flagship of his acquisition, RunnerClick.comLinkedInOfficial episode page & full show notes at AcquiringMinds.co:5 Lessons from Acquiring a $2m Portfolio of Websites

Rick Schmitz was an inexperienced 22-year-old with no money when he acquired a run-down ski resort and turned it around.Key points from Rick's story:Rick Schmitz was a 22-year-old graduating senior uninterested in pursuing a career in finance.He saw a small ski resort for sale in his native Wisconsin. It had been on the market (and losing money) for 5 years.Negotiated the original list price down from $1m to $625k.Most banks rejected him outright for a loan, but gradually he cobbled together the purchase price.17 years later, Rick has acquired and operates 2 other resorts in the upper Midwest.Reach Rick Schmitz at:LinkedInHis first acquisition, ‍Nordic MountainOfficial episode page & full show notes at AcquiringMinds.co:How to Buy a Ski Resort at Age 22

In just 9 months, Mike Botkin decided to acquire a business, negotiated a great deal, and dramatically improved profits.Key points from Mike's story:B & B Landscaping was generating around $800k in annual revenues.Acquired it for 2x of SDE.Paid 50% cash up front, then the remaining 50% was seller financed with a 4-year loan at zero interest.Turns out a third of customer accounts are unprofitable, costing the business money & weighing down margins terribly. Money-losing customers are let go, and prices raised for many others.In 9 months, acquisition entrepreneur Mike Botkin has the idea to buy a small business, negotiates a great deal, learns the business, and boosts profits dramatically.Reach Mike Botkin at:@MikeBotkin_LinkedInHis acquisition, B & B LandscapingOfficial episode page & full show notes at AcquiringMinds.co:How to Buy a Landscaping Biz & Boost Profits Quick

Nick Haschka left a Silicon Valley career and bought an office plant service in 2017, then acquired 9 more through 2021.Key points from Nick's story:The Wright Gardner was doing $1-2m in annual revenue, with margins in the 20% range.Acquired the business in 2017 for ~3x of SDE.Used SBA for 65-70% of the purchase price, 15% seller financing, and cash for the rest.Four months after acquisition, SBA banker came to them with another indoor plant services business looking to sell. Acquired that business, plus 8 others since then.Acquired businesses average a couple hundred thousand dollars in annual revenue, though some as small as $100k. All asset purchases.Reach Nick Haschka at:@nickhaschkaLinkedInHis first acquisition, The Wright GardnerHis community for entrepreneurially-minded SMB operators at https://operators.mn.co/.Official episode page & full show notes at AcquiringMinds.co:How One Small Acquisition Led to 9 More in 5 Years

How first-time acquirer Philippe Vanderhoydonck found a 30-year-old trade media business & bought it in under 3 months.Reach Philippe Vanderhoydonck at:LinkedInHis acquisition, PETS InternationalKey points from Philippe's acquisition:PETS International is a 30-year-old trade publication that publishes 6 magazines and hosts 2 conferences per yearGenerates 20-35% margins on low-seven-figure revenuesOpportunity is to expand online presence and product offeringAcquired for low seven figures, a 3x multiple of annual earningsAcquisition went very quickly, only about 10 weeksOfficial episode page & full show notes at AcquiringMinds.co:How to Acquire Your First Business in 3 Months

How former management consultant Scott Whitt acquired and grew a small clinical trials business into the millions.Key points from Scott's acquisition:Triad was generating $850k in revenues & large 70% marginsScott acquired it in 2015 for 3.5x earningsUsed ROBS for part of the acquisition financingGrew revenues to $3m in 5 yearsPredicts business can grow to $6-7mReach Scott Whitt:[email protected] acquisition, Triad Clinical TrialsOfficial episode page & full show notes at AcquiringMinds.co:Buying a Clinical Trials Firm & Growing It to $3m

Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.Key points from Tyler's acquisition:Blackhawk Fiberwerx was doing $500k in sales with $100k in profitSeller was a retiring and overwhelmed 80-year-oldTyler couldn't due-diligence the deal to death — had to "cross fingers and dive in"Huge margin of safety. Business was selling for the combined value of its assets, so if business collapsed Tyler could recoup loan by selling assets.SBA wouldn't make a loan without soil testing the land, so Tyler got a loan from a small regional bankReach Tyler Deike:LinkedInTyler's acquisition, Blackhawk FiberwerxOfficial episode page & full show notes at AcquiringMinds.co:Buying a Manufacturer for Just the Value of Assets

Mike Yarmo bought a struggling distributor & turned it into a local powerhouse in a different niche — then sold for 5x.Key points from Mike's acquisition:Owner was disengaged, retiring, and looking to sell his food distribution companyCompany was 25 years old but had terrible marginsMike & team acquired for low 7 figures, or ~2x earningsPivoted the company, grew aggressively over next few yearsSold 5 years later for 5x earnings, and 5x original acquisition priceReach Mike Yarmo:On Twitter: @michaelyarmoSubscribe to his newsletterOfficial episode page & full show notes at AcquiringMinds.co:How to Buy a $2m Dying Business Then Sell It for 5X

How a 9-month search was rewarded by the discovery of 2 tiny e-commerce companies primed for growth.Key points from Justin's acquisitions:Acquired first company for $160k, or about 3x earningsGenerated $200k in revenues during first 6 monthsRepresented more than a 3x year-over-year increaseAcquired 2nd co with 100% seller financingPlans to 10x both cos value in 3 yearsReach Justin Harris:LinkedInJustin's two acquisitions:Walter & RosieSTACK CandlesOfficial episode page & full show notes at AcquiringMinds.co:Doubling Revenue 6 Months after Acquisition