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Buying a Manufacturer for Just the Value of Assets
Podcast |
Acquiring Minds
Publisher |
Will Smith
Media Type |
audio
Categories Via RSS |
Business
Entrepreneurship
Investing
Publication Date |
Apr 16, 2021
Episode Duration |
00:31:47

Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.

Key points from Tyler's acquisition:

  • Blackhawk Fiberwerx was doing $500k in sales with $100k in profit
  • Seller was a retiring and overwhelmed 80-year-old
  • Tyler couldn't due-diligence the deal to death — had to "cross fingers and dive in"
  • Huge margin of safety. Business was selling for the combined value of its assets, so if business collapsed Tyler could recoup loan by selling assets.
  • SBA wouldn't make a loan without soil testing the land, so Tyler got a loan from a small regional bank

Reach Tyler Deike:

Official episode page & full show notes at AcquiringMinds.co:

Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.

Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.

Key points from Tyler's acquisition:

  • Blackhawk Fiberwerx was doing $500k in sales with $100k in profit
  • Seller was a retiring and overwhelmed 80-year-old
  • Tyler couldn't due-diligence the deal to death — had to "cross fingers and dive in"
  • Huge margin of safety. Business was selling for the combined value of its assets, so if business collapsed Tyler could recoup loan by selling assets.
  • SBA wouldn't make a loan without soil testing the land, so Tyler got a loan from a small regional bank

Reach Tyler Deike:

Official episode page & full show notes at AcquiringMinds.co:

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