Acquiring Minds How to Move the Needle in a $600k SDE Trades Business
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Feb 3, 2025 Kirk Olson, owner of Mike's Fencing in Indiana, shares his entrepreneurial journey and the challenges of acquiring a business. He discusses navigating tough negotiations and the complexities of financing, including integrating real estate into deals. Kirk reflects on the impact of culture and cash flow management after taking over the fencing business. He introduces digital tools like CRM to enhance operations and talks about adapting marketing strategies for growth in a shifting market. His insights offer valuable lessons for aspiring business owners.
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Business Overview
- Mike's Fencing, established in 1983, is a fencing contractor with strong brand recognition.
- It has a 50-50 residential/commercial mix, nine employees, and generates $2M in revenue and $600K in SDE.
Revenue Quality
- Despite being project-based, fencing businesses can have steady revenue due to market demand.
- Factors like population growth and changing homeowner preferences drive consistent work.
Deal Collapse
- The initial deal structure involved 5% down, 15% seller financing, and an SBA loan.
- The deal collapsed due to the sellers' insistence on collateralizing their loan, a non-starter with SBA.