Acquiring Minds Finding a Great Business in Cow Country
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May 23, 2024 Cody Agee shares his journey of buying a recession-resistant food testing lab, bypassing business school and using 401(k) funds. He discusses pricing based on earnings reports, finding investors on Twitter, and the benefits of personally guaranteeing seller notes. Additionally, he talks about the importance of licensing requirements, EBITDAR vs. EBITDA, and utilizing an enterprise resource planning system.
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Manifesting a Business
- Cody Agee focused on finding a stable, recession-resistant business.
- Two weeks after specifically thinking about food safety businesses, Sierra Dairy Laboratory was listed.
High-Quality Revenue
- Sierra Dairy Lab has high-quality revenue due to essential services and long-standing customer relationships.
- Their services are tightly coupled to consistent dairy demand, making them recession-resistant.
Location Matters
- Consider the location and its implications for your business.
- Evaluate whether being entwined with the local market necessitates long-term relocation.