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Michael Girdley (@Girdley) and Bill D’ Alessandro(@BillDA) are joined by Prateek (@prateekaneja), we talk about 2 Government compliance moats where the first one is a healthcare college in California and the second one is a home healthcare business in Connecticut. Let’s take a deep dive into how to generate great margins by allowing the actual service-providing side of the business to maintain compliance with a great moat.
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(00:00) - Introduction
(01:28) - Our sponsor is Cloudbookkeeping.com
(03:48) - First Deal: A Profitable Accredited California Healthcare College with title IV for sale
(04:26) - What does Title IV mean? Why does it matter?
(06:15) - What are the highlights of California Healthcare College?
(08:29) - How profitable is this knowing that it has a good margin?
(10:24) - What are the online trends in the market? Is this a different business or layered on the fixed cost base?
(13:23) - Is it a good thing when the college has an impressive title composite score of 2.77 and a 90/10 ratio of 85%?
(16:06) - How is the scale or lack thereof of this business?
(17:45) - What are the risks of acquiring the business?
(19:30) - Have they built a compliance machine?
(23:11) - 300-year old School in South Francisco
(26:21) - Second Deal: a nonmedical home care service in Connecticut
(28:32) - What is so striking about Home Healthcare?
(30:57) - How does this business interact with government money? Is it related to the Social Services that they offer?
(31:55) - What are the Pros and Cons of federal and state governments funding low-income individuals as a revenue source?
(37:57) - Why would someone consider this a good business?
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.
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