​(View in Browser)​

Hey Reader,

(5 minute read)

1. Word on the Street
2. The adventures of Grandma Gatewood
3. Tiny Deals Deep Dive
4. Pop Quiz:-)

1 Deep Dive--3 Tiny Deals--Giant Wealth!

TL;DR (for the highlight lovers)

• HVAC, Pet Supplies and Van Repair
• One doubled revenue
• One grew to 8 figures
• One sold to PE
• Full article below.

Word on the Street🛣️

If I’ve ever inspired you...

or chatted about a deal, or worked on a due diligence project, or even a tax return in the old days, consider voting for me today.
You can only submit one ballot so make sure you pick me in all three categories:-)

Use the QR code in the pic or vote here-) (Scroll to the bottom for the voting)

Thank You!

💬What She Did💬

• Hiked the Appalachian trail at age 67
• Entire trail in one season
• No equipment except Keds shoes and a denim bag
• Inspired by National Geographic
• First person to hike the trail 3 times
• Plus, survived the Depression, an abusive marriage and raised 11 kids

1 Deep Dive--3 Tiny Deals--Giant Wealth!

"Buy a J-O-B!"

"It’s all about the baby steps!"

"Buy a small mom and pop business you can operate on a day to day basis!"

-----------------

If you’ve been following me for any time at all, you’ve heard me say these things.

On repeat.

Some people will say it’s best to begin your entrepreneurial journey with a start up. Pop your cherry. Get some reps in. Do it again.

But…

Start ups suck!

They suck your time.

They suck your money.

They suck your energy and rarely do they pay you back.

So skip the start up and go straight to buying a business.

But not just any business.

You have to buy the business that’s right for you and your family. That’s a whole conversation by itself and exactly what I cover in my 3 Week Business Buying Bootcamp. (Stay tuned for some fantastic Black Friday sales coming soon!)

What I want to focus on today is Size.

Because as we all know, size does matter!

Don’t take my word for it. Let’s do some case studies.

I want to share three tiny business acquisitions that turned into huge wealth.

These all came from podcasts; you know how addicted I am to podcasts! I put all the main facts in bullet point format for easy digestion. The links are provided so have a listen for yourself. Then reply back and let me know what you think about small deals:-)

Case Study #1

Podcast: M&A Launchpad

​Doubling Revenue in a Plumbing & HVAC Company with JD Beck​

Background:

• Electrical engineer degree (never used)
• Four years of military service
• Worked for an elevator company for several years
• Had one dead deal before buying his first business (deal fell apart in due diligence)

Deal Dive:

• Your first deal is not meant to make you a bazillionaire. It’s a stepping stone.
• First acquisition had only $75K of seller’s discretionary earnings
• Bought the real estate with it
• Financed through the SBA
• Paid 2.2 multiple
• Very old school operations, all paper
• Kept everything the same for the first 6 months
• Then bought a second business and then a third
• In total, he bought $2.2 million in sales revenue and has now grown it to a $4.6 million revenue company

​
​Case Study #2

Podcast: Acquiring Minds

​Scaling a Tiny Acquisition to a PE Backed Exit with Phil Miller​

Background:

• Working on cruise ships as the port shopping guide
• Bought 2 rental properties in Florida as his start in “business”
• Lost everything and went back to the cruise ships
• Married a vet tech, but he had very little pet experience

Deal Dive:

• The company he bought was doing only $100,000 in sales
• Pet retail shop with unused grooming area and extra warehouse space
• He bought the business and the real estate for $300K
• Financed almost all of it
• He grew the first store to several hundred thousand dollars of revenue THEN bought his second location
• He grew to 11 locations
• Each location did $1-$2 million in sales
• It took 18 years but he then sold to private equity

​

Case Study #3

Podcast: Acquiring Minds

​Building a Beloved Brand from a Tiny, Dying Business with Harley Stitner​

Background:

• Suspended from high school for gambling under the stairs
• Worked for Microsoft’s small business department for several years
• Tired of corporate life

Deal Dive:

• The target company was a Volkswagon repair shop
• It was tiny, losing money, about to close
• Bought it for $100,000
• 12 years later Peace Vans is a beloved brand with 6 different service lines
• It’s now an 8 figure business, generating $8-$10 million of revenue a year

​

Did these guys get lucky? Or do you see any merit in starting with a small deal?

🧐Pop Quiz🧐

How many tourism dollars are generated by the Appalachian Trail?

(Reply to this email with your answer. First closest answer gets a mention in the next issue:-)

Last Issue's winner: FinanceRox

Over 100 million copies of Alice in Wonderland have been sold.

Whenever you're ready, there are 4 ways I can help you:

1.Connect with me and other buyers in the FB group.

2. Schedule a business buying strategy session here.

3. Respond to this email. I read them all:-)

4. Join the waiting list for the next launch of Acquisition Expressway, the 5K business buying system!

🏍🏍🏍🏍🏍🏍🏍

Thanks so much for reading... Peace Out!✌🏼

Della Kirkman, CPA
dellak@shift-n-gears.com

​​​​

​