(1/4) Looking at doing an add-on for which the owner won’t do seller fin (is buying RE with proceeds), and for which I prob can’t do SBA for couple reasons. Very complimentary revenues and strong rationale for deal, but also not without issues. #SMB#Finance
(2/4) True CF is quite a bit less than suggested given need to hire at least one role to backfill owner. So even if I could get comfortable with purchase price, not sure taking on more debt is best move for combined biz.
Jan 5, 2022 • 4 tweets • 1 min read
(1/4) I think its important to remain financially disassociated from your business in a way post-close. If an employee comes to you with strategic rationale to spend $$, you don’t want to be blinded by the idea of limiting your quarterly dividend or lowering “your” cash
(2/4) You should evaluate whether that decision makes sense objectively. I understand people have different financial situations and goals with their businesses, but there is a reason why PE firms don’t view their PortCo’s cash balance as their personal piggy bank..
Nov 16, 2021 • 5 tweets • 2 min read
(1/5) When completing my deal, the seller was very focused on keeping all working capital (i.e. AR less AP) at close. This required me borrow addt'l $$ to be added to the B/S to fund expenses until new AR began converting to cash #SMB#startup#Finance#business#Acquisitions
The challenge with this was twofold: 1) estimating WC in SMBs can be difficult, and a growing business in a post-pandemic environment makes it much more so. Therefore, borrowing a pre-determined amount vs. using a line of credit is very difficult and frankly risky
Aug 31, 2021 • 8 tweets • 2 min read
As someone with a background in finance, the first (and frankly, very fair) question I received when telling people about my acquisition was “but what do you know about landscaping?”. Aside from the mrkt research I did, the answer was, nothing. #startup#finance#Entrepreneur
My acquisition thesis was predicated on finding the right market backdrop (which commercial landscaping had) and pairing that with a business that had ample amount of “low-hanging fruit” when it came to operational/biz dev improvements.
