Looking to buy a business in UT/CO/WY/etc.

[Dshack89]

This is a crazy long shot, but I figured why not...I'm making a career pivot and am launching a search fund to buy and run a small business in the Intermountain West (more info: www.altapine.com). I am industry agnostic and am instead focused geographically on locations near good skiing/biking (ideally sticking in SLC area but open to move for the right opportunity). If anybody has any interesting leads on potential businesses for sale in the $1M to $8M range, let me know!

Sent from my SM-G950U using TGR Forums mobile app

[Rideski]

Tell me about the search fund.

[Bunion 2020]

Sell you mine for 1 mil.

Turnkey operation, yearly gross of 100K, major potential. Minimal inventory, knowledge based. You would be perfect.

I can send you my paypal account #, transfer the funds and its all yours. I will throw in 2 months training.

Bozeman/Big Sky area.

[Foggy_Goggles]

Your buzzword bingo game is strong. For that, I present you a better offer than Not Bunion. For $1mm you can have my general contracting business. Strong book of business, mostly not asshole customer, a trailer of tools that mostly work, employees that mostly show up. It would be perfect for you because, ya know "I’ve always been passionate about building things; from a shed construction business I started in middle school".

[EWG]

I'll sell you Foggy's construction business for 1.5 mil. It's more than Foggy will charge you directly, but I'll throw in a new logo and a case of beer.

[splat]

Check out Flippa. Lots of established online businesses for sale. Most aren't as high as what you have to spend but you might find something that works.

[Dshack89]

Lol, I expected the replies...well deserved haha.

Tell me about the search fund.

The basic idea is that baby boomers have solid businesses but dont have kids who want to run them...but the biz is too small for private equity. It typically takes 12-18 months to find a good business, using a combo of business brokers and direct sourcing. Once you find a business, you bring together bankers and investors to close the deal. Then, you step in as the CEO and grow it.

Typically, you'd go raise $500k or so to finance the search process (lawyers and accountants are expensive and you draw a salary). But, I'm self funding my search phase (or rather my wife is), meaning I can target smaller businesses and retain more equity because I'm not diluting investors.

Sent from my SM-N970U using TGR Forums mobile app

[waxman]

want to move to Canada?

[adrenalated]

The basic idea is that baby boomers have solid businesses but dont have kids who want to run them...but the biz is too small for private equity. It typically takes 12-18 months to find a good business, using a combo of business brokers and direct sourcing. Once you find a business, you bring together bankers and investors to close the deal. Then, you step in as the CEO and grow it.

Typically, you'd go raise $500k or so to finance the search process (lawyers and accountants are expensive and you draw a salary). But, I'm self funding my search phase (or rather my wife is), meaning I can target smaller businesses and retain more equity because I'm not diluting investors.

What exactly makes you think that you can take a business that you know nothing about, in an industry you know nothing about, with a client base that you know nothing about, and "step in as CEO and grow it."

What exactly do you think small business owners do, sit on their dicks and watch TV all day?

You should definitely buy Foggy's business. I'm pretty sure it'll be no problem to just jump in as CEO and grow it.

[Dantheman]

PM fastfred.

[schindlerpiste]

Question: Are you paying the usual 10% finder's fee

[Dshack89]

What exactly makes you think that you can take a business that you know nothing about, in an industry you know nothing about, with a client base that you know nothing about, and "step in as CEO and grow it."

What exactly do you think small business owners do, sit on their dicks and watch TV all day?

You should definitely buy Foggy's business. I'm pretty sure it'll be no problem to just jump in as CEO and grow it.

Of course there is a steep learning curve. But tons of businesses would grow if they did simple things like professionalize sales and had access to capital to grow faster. The average IRR for search funds is 37% (that number is likely a few years old). PE and VC can't even sniff that.

Sent from my SM-G950U using TGR Forums mobile app

[Shredhead]

Whatever it is, make sure you can do it early/late or from the chair.

[Dshack89]

^ that's the dream for sure! Gonna be a hard first few years but hopefully can end up there eventually. My main motivation is to get off the road. I'm a diamond on delta and am not proud of it.

1 other thing I'll add to help explain the investment model: small businesses typically sell for 4x cash flow, so you earn 25% but a SBA loan and seller financing is under 10%.

Sent from my SM-N970U using TGR Forums mobile app

[dtown]

Lol, I expected the replies...well deserved haha.
The basic idea is that baby boomers have solid businesses but dont have kids who want to run them...but the biz is too small for private equity. It typically takes 12-18 months to find a good business, using a combo of business brokers and direct sourcing. Once you find a business, you bring together bankers and investors to close the deal. Then, you step in as the CEO and grow it.

Typically, you'd go raise $500k or so to finance the search process (lawyers and accountants are expensive and you draw a salary). But, I'm self funding my search phase (or rather my wife is), meaning I can target smaller businesses and retain more equity because I'm not diluting investors.

Sent from my SM-N970U using TGR Forums mobile app

Very true about baby boomer’s kids, had this discussion the other day. Look into any business that involves operations, kids don’t want to run it and generally baby boomers are leaving a ton of margin on the table.


Sent from my iPhone using TGR Forums

[cmcrawfo]

There is great ski manufacturing company you should look into ...

https://www.tetongravity.com/forums/...kis-quot/page7

[waxman]

^ that's the dream for sure! Gonna be a hard first few years but hopefully can end up there eventually. My main motivation is to get off the road. I'm a diamond on delta and am not proud of it.

1 other thing I'll add to help explain the investment model: small businesses typically sell for 4x cash flow, so you earn 25% but a SBA loan and seller financing is under 10%.

Sent from my SM-N970U using TGR Forums mobile app

4x cash flow? Really? I can think of 5 ski shop owners that'll sell you their store right now.

[Fritz]

Depends on the industry but I see multiples that high for sure.


Sent from my iPhone using TGR Forums

[nickwm21]

“My expertise is in developing and translating concepts on a whiteboard into bottom-line growth by serving as an ambassador between senior leadership and front line employees.”

https://youtu.be/m4OvQIGDg4I


Sent from my iPhone using TGR Forums

[fastfred]

we are actually selling two business right now, my partner has his business and I have mine we share the same space
we are looking at doing a 2 for 1 so it's a win for you
I give massages with a happy ending and he buffs assholes
we both survived the last recession fully intact
the two ounces in the fridge don't come with the buisness
the hot chick in the showroom doesn't come either sorry
the real estate will be extra, pretty sure we want to unload it too because a big assesment is coming
how's breckenridge sound? plenty of bro brah employees to go around

[fastfred]

Of course there is a steep learning curve. But tons of businesses would grow if they did simple things like professionalize sales and had access to capital to grow faster. The average IRR for search funds is 37% (that number is likely a few years old). PE and VC can't even sniff that.

Sent from my SM-G950U using TGR Forums mobile app

what learning curve is that? your talking to someone who barely graduated high school
proffesionalize sales? WTF? people are so tight the assholes need a pipe wrench and a vice
I got lots of capital 85k in credit all maxed out too

[cmcrawfo]

The fracking industry is starving for investment capital right now .... May be a great time to jump in.

[jonesy]

Plenty of mom & pop trucking companies. Easy money,

[oftpiste]

f funding my search phase (or rather my wife is)

Is she poly?

[dunfree]

Very true about baby boomer’s kids, had this discussion the other day. Look into any business that involves operations, kids don’t want to run it and generally baby boomers are leaving a ton of margin on the table.

How many of said businesses are in a place the kid wants to live and can afford to live? I know, in similar businesses, something on the west coast will sell while something in the NE or Midwest will languish because people don't want to live in there.

there's no harm in OP asking, but damn - there aren't that many businesses in region OP wants that meet the criteria he's looking for. make a list and coldcall.