A $3mm profit a year water delivery business! - Acquisitions Anonymous episode 155

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Michael Girdley (@Girdley), and Mills Snell (@thegeneralmills) talk about a deal we liked: A Drinking Water Delivery Service based in Texas.

We dig into how this business operates, potential challenges on the customer side, head & tail winds, and Location based risks.

How do Power Law returns work for PE and our day-to-day? What are our thoughts on the Capital Expenditure budget for this company? Learn more about this deal as you listen to this episode.

Company: Drinking Water Delivery Service

Location:TX

Stated Financials:$3M - SDE | $5M - FF&E | $6.5M Gross Revenue

Asking Price:$18M

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Show Notes:

(00:00) - Introduction

(01:17) - Our Sponsor is CloudBookkeeping

(02:44) - Catch up with Mike and Mills

(03:52) - Deal & financials: TX Drinking Water Delivery Service - $3M SDE

(07:02) - What does this company do?

(08:26) - What is the customer base risk associated with this deal?

(10:54) - How do we think about CapEx for this business?

(13:32) - What is the catch with Oil Field companies?

(15:32) - How do Power Law return work for PE and our day-to-day?

(21:05) - What is the location risk associated with this deal?

(22:58) - What’s so interesting about the cemetery business?

(23:47) - We’re looking for $3 to $5M in SDE/EBITDA businesses, send ‘em over!

(26:21) - How stable can this business be on a day-to-day basis?

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Additional episodes you might enjoy:

#153 - Will Bill buy this company for Girdley’s Christmas present?
#152 - Should we buy this Ambulance company?
#151 - Should we buy this Pot Business Credit Card Processor?
#150 - Let’s buy a medical staffing business
#149 - Is this car spinner business a good side hustle?
#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse Pujji

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