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Ben Tiggelaar 🟠 Profile picture
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Dec 8 • 9 tweets • 3 min read
How to create a PASSIVE deal flow funnel for equity investments in self-funded search deals?

In 2022, I analyzed over 100 of these and made investments in 4

In this 🧵 I'll show you the 5 ways I get deals
1. Searchfunder Passive

Searchfunder is an ETA online forum

searchfunder.com -> register as an 'investor'

Make sure your title and biography clearly outlines:
1) you're an active investor
2) check size range
3) your unique value add
2. Searchfunder

Go to Searchfunder > PPMs section> Setup to only see 'self-funded search'

View their profiles and click 'request ppm'

I see there are over 250 self-funded serachers who you can request a PPM from

My guess is a fraction need equity today so work for you
3. Join the official self-funded ETA investor list

Send an email to bootcamp@pursuantcapital.com with this info:

-LinkedIn profile
-desired check size in each deal
-your unique value add

This is a coveted list - see deals first

Thanks @Sam_Rosati @SMB_Attorney for making
4. Twitter

Outline in your profile you are an investor

Make a post every 2 weeks with deal type you are looking fro

Write quality content about investing in deals you like & reference the hashtag #SMBTwit
5. Do intro calls

This can be a time suck

Setup a calendar in Calendly with limited time slots and if someone reaches out, be willing to have a short chat

Limit these to 10-15 min

Make posts on Twitter & Searchfunder saying you're willing to chat with pre-LOI searchers
How to analyze one of these 'self-funded deals'
What's a self funded search deal?
I'm creating an entrepreneurship picture book for kids aged 2-6 (but need 1,000 people first). Think Rid Dad Poor Dad but for kids.

Please subscribe here (sign up free for updates):
getrevue.co/profile/bentigg

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More from @bentigg

Ben Tiggelaar 🟠 Profile picture
Dec 5
My wife bet me I couldn't get to 1,000 followers on Twitter in a month

She was wrong.

I did it in 2 weeks! (from 55 followers)

I had a winning playbook and it worked:
First, to my first 1,000 followers

Thanks for engaging with me

#SMBTwit is the community I focus on (think #RETwit but with only smart people)

I buy businesses…and want to connect with other investors and entrepreneurs

Let's give away some secrets...
My results in 2 weeks:

-600,000 impressions (WHAT??)
-30,000 profile visits (WHAT?? How that even is possible but OK)
-1,001 followers
-95 inbound DM convos
-12 investment deals
-video calls with >30 people so far (this has been the most enjoyable) Image
Read 13 tweets
Ben Tiggelaar 🟠 Profile picture
Dec 2
How to tell if a business is linked / correlated to a commodity?

I just saw this $3.5M EBITDA #smallbusiness for sale: Recycled Resin and Plastic Supplier

PLASTICS = polyethylene

Ok, let's see what's up here 🧵
All questions start with me opening up Google

Google search "polyethylene price"

This 2nd link looks promising...a chart.

I like charts.
2019: $1,000

2020: $800 (drop of 20%)

2021: $1400 (increase of 80%)

2022: $1200 and declining? (20% decrease)

Ok...Seems like a wild ride here....Up one year, down the next, up, down.

Looks like a rollercoaster!
Read 7 tweets
Ben Tiggelaar 🟠 Profile picture
Dec 1
Considering #entrepreneurship through acquisition? There's 3 models:

1. Self funded search (SBA debt)
2. Traditional search fund
3. Independent sponsor

This 🧵 will quickly stereotype each model and the people that choose it (I intend to slightly offend)
// 1 - SELF FUNDED SEARCH (1/3)

-Stereotypes: has no idea what they are doing, builds investment decks and financial models with lots of errors, arrogant, willing to get hands dirty

-EBITDA Multiple Range: 2.5x to 5x

-EBITDA target: $500K to $2M

-Role post-close: CEO/GM
// 1 - SELF FUNDED SEARCH (2/3)

-Resume: Nontraditional, Industry, Management, Finance

-Economics: 50% to 80% of the common equity

-Sponsor Salary: $75K to $125K

-Financing funding source: SBA loan + airball (personal guarantee)
Read 12 tweets
Ben Tiggelaar 🟠 Profile picture
Nov 29
When acquiring a company, you either buy the STOCK or buy the ASSETS (stock deal or asset deal).

Why does it matter?

💲💲Cash flow 💲💲

This 🧵is summary of what I've learned doing #smallbusienss stock/asset deals. Ignoring this topic can be...painful (beware).
Goodwill = value of business in excess of the stated tangible net assets on the balance sheet

The seller has probably depreciated the heck out of the balance sheet assets (the net asset amount is low)

If you buy the stock, you have to step into that low asset basis (Bad!)
Asset purchase you can:

1. 'Step up' the basis of the acquired assets (basically taking that old piece of equipment and telling the IRS it's new again!)

2. Amortize goodwill over 15 years (more amort expense = lower taxes)
Read 11 tweets
Ben Tiggelaar 🟠 Profile picture
Nov 27
How to buy a quality small business?

It's very hard to buy a quality business but you can make it easier

🧵Here are the 15 principles I wish I knew before I bought my first SMB
// What type of business?

You get to choose your own story. This is the #1 best thing about buying a business

Everyone has a different focus, strategy, and interest area

SAAS? Great!

Sewer Line Repair? Cool!

I prefer businesses with highly predictable revenue (contractual)
// Don't buy a job, buy a company

I've had a job before...it's not for me.

I will not buy a company unless it can operate on its own

Your valuation and structure should assume a market replacement cost for the owner
Read 17 tweets
Ben Tiggelaar 🟠 Profile picture
Nov 22
Raising equity for a self-funded search acquisition deal?

In 2022, I’ve reviewed over 100 self-funded deals and made investments in 4.

Here’s the 7 slides I want to see in a deck (plus some red flags & other tips at the end), from an investor's perspective...

--> --> --> -->
Slide 1 - Executive Summary (split into 4 quadrants)

-Company overview
-Situation overview
-High level historical financials (Rev, GM, EBITDA)
-Sources and uses (example below)
Slide 2 - SWOT (strengths, weaknesses, opportunities, and threats)

Every business has challenges, be honest about what they are and what you plan to do to address them.

Ex: debt collections businesses get sued a lot → you’re a lawyer so no big deal
Read 13 tweets

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