Acquiring Minds

Latest Episodes:

How to Buy a Ski Resort (at Age 22) Jul 13, 2021

Show notes

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:

LinkedIn
His first acquisition, ‍Nordic Mountain

Official episode page & full show notes at AcquiringMinds.co:

How to Buy a Ski Resort at Age 22

How to Buy a Landscaping Business & Boost Profits Quickly Jul 08, 2021

Show notes

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:

Official episode page & full show notes at AcquiringMinds.co:

How to Buy a Landscaping Biz & Boost Profits Quick

How One Small Acquisition Led to 9 More in 5 Years Jul 06, 2021

Show notes

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:

@nickhaschka
LinkedIn
His first acquisition, The Wright Gardner
His 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 to Acquire Your First Business in 3 Months May 27, 2021

Show notes

How first-time acquirer Philippe Vanderhoydonck found a 30-year-old trade media business & bought it in under 3 months.

Reach Philippe Vanderhoydonck at:

LinkedIn
His acquisition, PETS International

Key points from Philippe's acquisition:

PETS International is a 30-year-old trade publication that publishes 6 magazines and hosts 2 conferences per year
Generates 20-35% margins on low-seven-figure revenues
Opportunity is to expand online presence and product offering
Acquired for low seven figures, a 3x multiple of annual earnings
Acquisition went very quickly, only about 10 weeks

Official episode page & full show notes at AcquiringMinds.co:

How to Acquire Your First Business in 3 Months

How to Buy a $800k Clinical Trials Firm & Grow It to $3m May 20, 2021

Show notes

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% margins
Scott acquired it in 2015 for 3.5x earnings
Used ROBS for part of the acquisition financing
Grew revenues to $3m in 5 years
Predicts business can grow to $6-7m

Reach Scott Whitt:

scott_whitt@outlook.com
LinkedIn
His acquisition, Triad Clinical Trials

Official episode page & full show notes at AcquiringMinds.co:

Buying a Clinical Trials Firm & Growing It to $3m

Buying a Manufacturer for Just the Value of Assets Apr 16, 2021

Show notes

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 profit
Seller was a retiring and overwhelmed 80-year-old
Tyler 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 bank

Reach Tyler Deike:

LinkedIn
Tyler's acquisition, Blackhawk Fiberwerx

Official episode page & full show notes at AcquiringMinds.co:

Buying a Manufacturer for Just the Value of Assets

How to Buy a $2m Dying Business Then Sell It for 5X Apr 09, 2021

Show notes

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 company
Company was 25 years old but had terrible margins
Mike & team acquired for low 7 figures, or ~2x earnings
Pivoted the company, grew aggressively over next few years
Sold 5 years later for 5x earnings, and 5x original acquisition price

Reach Mike Yarmo: