Profile picture
, 3 tweets, 1 min read
My Authors
Read all threads
I thought I'd share this teaser I found on a popular business listing site a few weeks ago. The company is off-market (multiple offers before I got to it), but here's what caught my eye:
- Tier 3 city in mtn west w/ good demographic trends
- 30+ year history

1/
- Potential for regularly repeating revenue streams (to be validated during diligence)
- Differentiated...I'd never thought of or heard of this industry before
- Most importantly to me in this case was the price: ex-real estate and knocking off $200k for a new CEO = 2.5x CF
The initial concerns I had were: the importance of the seller to the biz (technical know-how, customer relationships, etc.), tenure and skill level of existing employees, available labor pool, training req'd for new hire, and some ?s on the #s.

How would you have evaluated this?
Missing some Tweet in this thread? You can try to force a refresh.

Keep Current with Tim Ludwig

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Related hashtags

#s

More from @tsludwig see all

Profile picture
Tim Ludwig
@tsludwig
10 (+1) things that have influenced my life:

1 - Being accepted into a private middle school - My first exposure to a culture of success and expectations of attending college. Learned I was capable of competing against the best if I applied myself (which wasn't always the case)
2 - Buddhism (I'm not practicing) - Teachings about following the middle path and that human suffering is caused by attachment made deep and lasting impressions. Also, the notion of living in the present to the extent possible.
3 - Marrying my wife - Found a partner with similar values, but much greater strengths in empathy, compassion, and organization. She's made me better, added immeasurably to the fulfillment in my life, and is largely responsible for the amazing people our children are turning into
Read 11 tweets
Profile picture
Tim Ludwig
@tsludwig
The first 100 days of an acquisition are so important. You're creating a lot of 1st impressions as the new owner/CEO and everything you do is under a microscope.

If not done thoughtfully, it can take years (forever) to dig out.
My best advice is, unless circumstances dictate otherwise, go slowly. Take your time.

Spend time with the employees. Learn their names and stories.

Meet customers. Talk about continuity of service, importance of respecting past practices.

Be Very careful about making promises.
You don't want to lose a key employee before you know their worth and have mitigated the risk of departure.

You want to validate your pre-closing diligence and address any key misses.

You want to save any customers that might use the transition as a reason to leave.
Read 4 tweets
Profile picture
Tim Ludwig
@tsludwig
A short story about deal making:

I had a very nice company under LOI, had built a great relationship with the sellers, and everything was marching towards closing.

There was just one lingering issue: negotiating market-rate rent, which we'd estimated in the LOI.

1/6
It is 2 weeks before closing, I'm big, big $ into non-refundable diligence costs, and already planning for the transition.

My phone rings. It's the seller saying we need to talk about the rent. He asks where I think we are on terms? Referencing the LOI, I tell him.

/2
He pauses, says this is uncomfortable, but that he insists on a material increase (~15% change in pro-forma EBITDA). Then, silence.

He says he wanted to tell me much earlier, but the brokers told him to hold-off and that he, rather than them, should deliver the news.

/3
Read 6 tweets

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!