Key Points From the Interview
fter 78 episodes, I still don't have a handle on how long a search should take.
Some searchers have rigorous criteria. (Looking at you, PE people.)
So their searches naturally take longer, and they leave me feeling that acquisition-worthy businesses are needles in haystacks.
But then there are stories like James Maxwell.
I love James' business, which he acquired in November:
- Janitorial/commercial cleaning
- 22-year history
- Upstanding seller
- Recurring revenue, good contracts
- Pristine books
- $1.5m revenue, $500k SDE
It only took James & his partner 5 months from their decision to search to putting the business under contract.
And get this:
They only looked in the city where they intended to settle.
AND that city is pretty small, about 100k population.
So did James just get lucky finding a business that checked all the boxes in his small city?
Maybe.
Or maybe it was actually an advantage.
Many searchers only look in the "tier 1" or "tier 2" metros.
So if you're committed to buying a business in a small city, you'll have less competition from other searchers and may find a good business in less time.
Like James 👇
Until next week,
Will
Sponsors
August Felker is a 2-time successful searcher — first with a traditional search fund; the second time around, he did a self-funded search.
Today August runs Oberle Risk Strategies, an insurance firm with a dedicated practice group for searchers and acquisition entrepreneurs like you.
If you've got a business under LOI, Oberle will provide complimentary due diligence on that business's insurance and benefits program. A great, no-risk way to get to know August & team.
They love helping searchers; they've worked with hundreds. Oberle is a specialty insurance brokerage for searchers, by a former searcher.
Check out the Search Fund Team at Oberle.
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