Acquisitions Anonymous

What will make a buyer pull out after LOI with Casey Cutsail - Acquisitions Anonymous Episode 101

June 10, 2022 Bill D'Alessandro, Mills Snell, & Michael Girdley Episode 101
Acquisitions Anonymous
What will make a buyer pull out after LOI with Casey Cutsail - Acquisitions Anonymous Episode 101
Show Notes

Bill D'Alessandro (@BillDA) is joined by Casey (@CaseyCutsail); we talk about 2 Auto Parts Businesses for sale. He owns a business called DIY parts in the aftermarket automotive accessories niche. He also owns a 3 PL with three separate locations. We talked about a Deal he had under LOI but ultimately couldn't move forward and a second deal in the FBA automotive space. We appreciate his second-level insights on the listing that you wouldn't see on the first read-through unless you're in the industry.

-----

Thanks to our sponsors!

* CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a "client service first" approach. They provide a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.

-----
* Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
* Do you enjoy our content? Rate our show!
* Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.
-----
Show Notes:

(00:00) - Introduction to 2 Auto Part Businesses for Sale
(00:54) - Our sponsor is Cloudbookkeeping.com
(02:41) - What do you need to know first about Casey's e-commerce business?
(04:12) - Deal 1: Auto Parts business Deal
(06:04) - What are Lift Supports?
(07:35) - Did they make their gas charge struts, or were they a reseller of other brands?(08:33) - Did you learn anything post-LOI that made you change your mind?
(12:20) - What did Casey start digging into first as his LOI got accepted? 
(13:42) - Why did the business start rolling over as soon as it was listed for sale?
(16:00) - Bleeding the balance sheet: Pay attention to this seller's behavior
(17:55) - What happened during Diligence? What was going on with the sales?
(23:29) - Was there anything else that Casey took away from the process that will be useful in pursuing future deals?
(26:06) - Introduction to 2nd Deal: Amazon FBA automotive space
(29:32) - What's Casey's take on the accessories niche in the Automotive parts space generally? How do we understand niches?
(32:43) - Why is surveying the competition on this deal significant?
(35:10) - Why is the barrier to entry a significant factor?
(37:00) - What are the two reasons why having two and a half million sales worth of business is tough?
-----

Past guests on Acquanon include Nick Huber, Brent Beshore, Aaron Rubin, Mike Botkin, Ari Ozick, Mitchell Baldridge, Xavier Helgelsen, Mike Loftus, Steve Divitkos, Dzmitry Miranovich, Morgan Tate and more.

-----

Additional episodes you might enjoy:

#96 From W-2 to Business Owner - Patrick Dichter tells us how to cold-reach sellers and we discuss 2 Deals
#87 Yelp is not evil! Building a business using digital CAC - Featuring Johnny Robinson from Orange Window Cleaning
#79 What do Investors want? - Dig into an investor's mind with Bradford Hardin
#75 SBA Loan Secrets with Heather Endresen, expertise from a Billion-Dol