Acquisitions Anonymous - #1 for business buying, selling and operating

Should we buy this Ambulance company? - Acquisitions Anonymous episode 152

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Dec 23, 2022

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INSIGHT

Ambulance Business Is Largely Contracted Medical Transport

Non-emergency ambulance work is mostly contracted and functions like an expensive medical taxi rather than 911 response.
Examples include inter-hospital transfers, ventilated patient moves, and scheduled patient transports billed to Medicare/Medicaid and HMOs.

INSIGHT

Teaser Undervalues Ambulances In FF&E Line

Seller owns building (not for sale) and six ambulances; listing shows FF&E of $125,000 which implies very low per-vehicle valuation.
Bill doubts $20k per ambulance is realistic and flags potential mismatch in asset listing.

INSIGHT

Rio Grande Valley Has Relationship Driven Business Dynamics

Rio Grande Valley has strong US–Mexico cultural and business overlap where personal networks often trump formal rules.
Hosts warn this creates informal deal dynamics and enforcement variability that affect contract stability.

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Michael Girdley (@Girdley), and Bill D’Alessandro (@BillDA)talk about an established ambulance service. We investigate how this service differs from the conventional ambulances provided by hospitals. We also dig into this business’s location to understand its significance in this location.

We will also determine whether this item passed the Private Equity Test, which customers are the most crucial to this transaction's success, and discuss how the business relationships outside the United States are distinct from those within the country.

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Show Notes:

(00:00) - Introduction

(00:20) - Our Sponsor is CloudBookKeeping

(01:48) - Catch up with Mike and Bill

(03:44) - Deals and Financials: Established Ambulance Service

(05:16) - How does this business work?

(06:58) - Where is this business located, and why is it important?

(10:30) - What do we think about the financials?

(12:55) - Why has PE passed on this deal?

(15:54) - Who are the most important clients for this deal?

(16:33) - What is Girdley’s #1 tip to learn about an industry?

(18:12) - What is Bill’s advice for people interested in this deal?

(20:28) - Why does the IRS try to ban country club memberships as business expenses?

(22:06) - How are business relationships outside the US different from inland?

(27:46) - The tricky Costa Rica listing and the “Ditch Risk”

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Additional episodes you might enjoy:

#151 - Should we buy this Pot Business Credit Card Processor?
#150 - Let’s buy a medical staffing business
#149 - Is this car spinner business a good side hustle?
#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse Pujji
#147 - $9.6M EBITDA Florida Armored ATM Services Business
#141 - A very profitable B2B Internet Business in the Petcare Vertical
#140 - Let’s SBA the heck out of this deal - with Special Guest Heather Endresen

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