Andy and Jessica are touching a very recurrent topic: Private Equity. Many sellers are asking questions such as:
- What is it like to sell through private equity?
- What is private equity looking for?
- How do I attract a private equity buyer?
Two experts are bringing the answers to these questions, Rob Mossman from Spur Acquisitions in Colorado and Kyle Madden from KLH Capital in Florida. Not all private equity is alike, and you are going to hear about this in today's episode.
Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million. An ideal buyer is a businessman that sees the opportunity! Email Dustin at dustin@tworlddenver.com.
Key takeaways:
[4:50] Kyle Madden from KLH Capital.
[5:30] Kyle explains how private equity works.
[11:11] Kyle shares how private equity looks like from an exit perspective through three different scenarios.
[13:14] The time frames vary in the three different cases of private equity.
[14:31] How does a business owner decide if a private equity group is the right fit?
[17:50] You first have to decide about what you want from a deal; what are you looking for?
[24:14] Deal of the week: Peter Berg sold a business during the pandemic without meeting the seller, the buyer, or even seeing the business. Everything was done remotely. Price: $600,000. The buyer paid $580,000 with a seller note for one year.
[31:53] Rob Mossman from Spur Acquisitions.
[32:25] Rob talks about his professional background and shares his knowledge about private equity.
[35:37] Rob explains why it is important to have a minimum of $1 million EBITDA.
[40:40] The crucial importance of growth opportunities.
[44:44] If you are in the Baby Boomers demographic and have run a successful business that has made you wealthy, how can you get liquidity and the freedom to enjoy it?
[52:01] Listing of the week: Dustin Audet (Rocky Mountains) is selling a pool installation company located in Colorado. They are installing 50 pools at an average price of $110,000. $5 million in total sales. Net Profit: $40,000 per pool. Price: $2.2 million.
Mentioned in this Episode:
The Deal Board Podcast
United Franchise Group
Transworld Business Advisors
Transworld on Linkedin
Transworld on Facebook
Call us — (888) 711-9018
Email us thedealboard@tworld.com
Contact Rob Mossman from Spur Acquisitions
Reach out to Kyle Madden from KLH Capital. Email Kyle at kyle@klhcapital.com
Email Peter Berg at pberg@transworldma.com, or call (954) 907-3007
Email Dustin Audet at dustin@tworlddenver.com
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