Deal structure framework and multiples

Ever considered acquiring a profitable, sub $1-5M EBITDA niche business?

So you could spend summers on Lake Como, winters in Aspen, and Saturdays in Las Vegas at the Wynn listening to David Guetta…

Or so you could retire your parents, send your lovely kids to a private school, and buy your wife the BMW convertible she always wanted…

I don't know your exact dream, but owning a business like this makes it all possible.

So... I have something for you.

I believe Jules Brenner of the Industrial Succession Group just shared everything one needs to know when it comes to acquiring a traditional niche business with $1M+ EBITDA.

• How to find a deal?
• How to find co-founders?
• How to raise capital?
• How to pitch investors so they are actually willing to invest?
• How to manage it all post-acquisition?

Ohh.. and I forgot.

He really walks the talk:

• 3 acquisitions
• $20 mil in revenue
• 50% gross margin
• $4 mil in EBITDA

With a goal of reaching $100 mil by the end of 2028…

And maybe (if a few acquisitions go well) $35 mil already by the end of 2024

Most importantly, him being very open and generous with advice, sharing it all without holding anything back.

We discuss:

— Creating a list of companies to be acquired

— How they will reach $100 million by 2028

— 6-7 failed deals, while not losing hope

— How to pitch, structure and present a deal in a way that investors would love

— Deal structure (equity to debt ratio)

— A very good VP of Marketing can do magic for your traditional business

— An agency where people make 100+ cold calls a day to grow their business

00:00:00 - Intro

00:00:41 - A portfolio of industrial companies with 100+ employees

00:05:39 - 2.5 years of research (for example, metal fabrication in the aerospace industry)

00:09:58 - Step-by-step guide to how you pitch your deals so investors want to participate

00:19:02 - “If you paid nothing for a company, would you still buy it?”

00:25:14 - Obvious red flags when looking at deals

00:31:39 - A lot of traditional businesses don't have a CRM or a website and just make a 7-fig from real estate

00:37:17 - The VP of Marketing handles all business development

00:38:02 - The way their deals are structured

00:40:11 - Buying a business so you don't have to rely on an exit

00:41:56 - Selling products to LAX Airport which burns $2,000,000 a day

00:44:37 - The industrial sector does not get the love from small business buying community

00:47:39 - Jules pre-acquisition vs. Jules post-acquisition (skills, experiences, beliefs)

My full conversation with Jules Brenner, the founder of Industrial Succession Group — Stream now.

Follow PrivatEquityGuy on Twitter: ⁠⁠https://twitter.com/PrivatEquityGuy⁠⁠

Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠https://privatequityguy.beehiiv.com/

Jules on LinkedIn: https://www.linkedin.com/in/jules-brenner/

This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.