Acquisitions Anonymous

We liked this deal! - Highly profitable Dog Resort & Daycare - Acquisitions Anonymous Episode 123

September 13, 2022 Bill D'Alessandro, Mills Snell, & Michael Girdley Episode 123
Acquisitions Anonymous
We liked this deal! - Highly profitable Dog Resort & Daycare - Acquisitions Anonymous Episode 123
Show Notes

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Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA), and Mills Snell (@thegeneralmills), we talk about a fun deal in Dallas-Fort Worth, Texas on a Highly Profitable Dog Resort & Daycare. We find out whether this is a growing market with its extraordinarily high margin, the pet industry's macro characteristics, fascinating financing pieces, and the seller's flexibility make for successful negotiation.

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“Thanks to our sponsor!

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You can contact Heather Endresen, Director & Founder at heather.endresen@liveoak.bank. Mention this podcast in the subject line and ask her about office hours to get in touch.

*Live Oak Bank is the #1 SBA 7(A) Lender. The data supplied by the SBA reflects 7(a) highest dollar volume during FY 2021.

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Show Notes:

 

(00:00) - Introduction

(01:15) - Our Sponsor is Live Oak Bank

(02:23) - Deal & financials: Highly Profitable Dog Resort & Daycare

(04:36) - We’re not acquiring any Real Estate on this deal!

(07:59) - What is particular about these customers and what is the arms race in this business?

(10:03) - Is this a moat-able business?

(13:00) - Can this business be all fun or is this sneaky? Are there regulation requirements here?

(14:28) - Are there any upselling opportunities to gross your net margins?

(18:03) - What happened with the TAM after COVID on these?

(20:27) - Don’t skip these topics when talking to the seller!

(19:01) - Why is it so risky to operate this business? Where will you spend your time protecting your investment?

(21:05) - There's something we're missing: What doesn't seem right about the price?

(24:29) - What would @BillDA think about negotiating this Deal?

(26:49) - What is your ceiling for this business? Think about buyer-business fit!

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Additional episodes you might enjoy:

#122 ATMs are a sick business. Cash is King!  

#121 An eCom business at 2x profits?! 

#105 How to Make Money in the E-Commerce Game - Bill D’Alessandro gives an e-Commerce masterclass - Part 1