Zach Whitt Profile Banner
Zach Whitt Profile
Zach Whitt

@ShowMeYourCIM

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Lower Middle Market M&A @ Trailhead Partners | founder @haulersoftware | former garbage man | Airplanes, Golf, Fly Fishing, Family (priority order)

The Hill Country, Texas
Joined February 2009
Don't wanna be here? Send us removal request.
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@ShowMeYourCIM
Zach Whitt
3 years
search funders who can't wait for the joy of small business ownership: sometimes it's great. sometimes a service truck catches on fire and you put it out with storm drain water using a gatorade bottle you found in the truck your driver hasn't cleaned in a week.
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@ShowMeYourCIM
Zach Whitt
6 months
It’s so sad to see resumes like this Sucked into the corporate vortex It’s not too late for this guy to start a pressure washing business and make over $10k his first month Take the leap Steve!
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@ShowMeYourCIM
Zach Whitt
3 months
First boys trip in the new ride to go see the grandparents! 7 hour drive turned into a 2 hour flight
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@ShowMeYourCIM
Zach Whitt
2 years
Yes, I've been successfully baited. No, buying a $500k SDE business does not net you $13k a year using any number of reasonable assumptions.
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@ShowMeYourCIM
Zach Whitt
8 months
Of course that's your contention. You're a spreadsheet jockey. You just finished reading the HBR Guide to Buying a Small Business. Buy over $1M EBITDA and let it cash flow, probably. You're gonna be convinced of that til next month when you get to @bentigg and then you're gonna
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@ShowMeYourCIM
Zach Whitt
2 years
Don't be like me. Accounts receivable was $29k when I bought my business and $171k after one year of ownership. Because we grew? No - I was a pushover. 6 months into ownership and not collecting enough I had $4k in the bank and $60k in short term debt. Don't be like me.
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@ShowMeYourCIM
Zach Whitt
5 months
@ghosttyped @NickatFP Extremely incorrect (we eat tacos)
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@ShowMeYourCIM
Zach Whitt
3 years
Buying and growing a business is easy. Here’s what you need to make it a success: Hard work Focus on the KPIs that matter 10X SBA leverage and a PG that keeps you awake with crippling anxiety
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@ShowMeYourCIM
Zach Whitt
2 months
Austin-Alamosa in 2:40. T-minus 60 minutes to fly fishing!
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@ShowMeYourCIM
Zach Whitt
1 year
"We're different," said every buyer We have 9 private equity groups in our CRM with "Oak" in the name 😂
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@ShowMeYourCIM
Zach Whitt
2 years
EBITDA (or SDE) multiple doesn't matter in owner operated deals. What really matters: can I comfortably service the debt and consistently pay myself enough to make the risk worth it? My own acquisition was reasonable at 2.3x, but too small to pay myself enough until we grew.
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@ShowMeYourCIM
Zach Whitt
5 months
There is no Silver Tsunami
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@ShowMeYourCIM
Zach Whitt
1 year
We worked with an owner this week who bought his business 6 years ago for $3m with a 7a loan. We think it’s worth around $18m today. He’s a great operator, but hasn’t reinvented any wheels. Consistent, steady growth and hiring. The SBA SMB dream!
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@ShowMeYourCIM
Zach Whitt
7 months
Got an offer on a small deal today where the buyer sent us three options: High price, high seller note Medium price, medium seller note Low price, all cash I kind of love this method! And I think the seller will appreciate the options
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@ShowMeYourCIM
Zach Whitt
1 year
Anyone looking for a fire and water restoration business for sale? We have a nice set of 3 SERVPRO franchises coming to market in North Texas and Oklahoma. $5.7m revenue $1.2m adj EBITDA DM me your email and I'll get you the rest of the info!
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@ShowMeYourCIM
Zach Whitt
5 months
@RampCapitalLLC Sorry but that’s incorrect
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@ShowMeYourCIM
Zach Whitt
2 years
oh you’re building a baby berkshire?
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@ShowMeYourCIM
Zach Whitt
2 years
@ClintFiore Next years hope for revenue
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@ShowMeYourCIM
Zach Whitt
5 months
A friend 10x'd revenue ($800k to $8M) of his commercial landscaping business in 4 years after buying with an SBA loan! His dirty secret? Being absolutely and totally addicted to selling. He would show up at a decision maker's house and beg them to sign the contract. Go to HOA
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@ShowMeYourCIM
Zach Whitt
4 months
I'm looking for an on-demand financial analyst/team. We don't need someone full time, but we have enough time-sensitive stuff that hiring consultants doesn't always work because they're on other projects In an ideal world, we would be able to pull from a shared pool of people
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@ShowMeYourCIM
Zach Whitt
7 months
Getting an LOI signed is great because 90% of the work is done, and you only have 90% to go! 🙃🫥💀
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@ShowMeYourCIM
Zach Whitt
5 months
If I were buying a business, the first thing I would do is mute every professional service provider on here telling me to go buy a business You gotta make that decision on your own and not be influenced by the people making money from your fees
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@ShowMeYourCIM
Zach Whitt
6 months
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@SMB_Attorney
SMB Attorney
6 months
Here are your options: - public company CEO - professional athlete - highly respected politician - owner of a privately held co You make the same amount of money in each. Which life are you choosing? Why? I think the answer is obvious.
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@ShowMeYourCIM
Zach Whitt
3 years
these are the trials that make a man.
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@ShowMeYourCIM
Zach Whitt
7 months
Love talking to those people no one has ever heard of, with a single page website, with $1B invested, and majority ownership in 35 companies 35 companies no one has ever heard of
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@ShowMeYourCIM
Zach Whitt
10 months
We need to be productivity minimizing. Do those time-wasting things that bring joy that efficiency maximizers tell us we should outsource. Today I’m shoveling 12 yards of dirt with my “helpful” 3 year old.
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@ShowMeYourCIM
Zach Whitt
2 years
Alright I get why y'all hate on business brokers. We're pitching a client who's firing their broker, and we snooped around and found the BizBuySell listing. Listing: Rev $13.5m, SDE $2m Real numbers: Rev $9.5m, SDE $880k It's like we aren't even reviewing the same business!
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@ShowMeYourCIM
Zach Whitt
3 months
@Cancelcloco That's an ATR, not a Boeing. And your tweet is foolish. Why lead others to the wrong assumption?
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@ShowMeYourCIM
Zach Whitt
4 months
Closing announcement! Shoutout to everyone for the helpful feedback: - "we have other opportunities at a lower multiple...thoughts?" (my thought is you should buy those instead!) - "this asking price is unrealistic. can you walk me through how you got there?" (no) - "the
@ShowMeYourCIM
Zach Whitt
1 year
Anyone looking for a fire and water restoration business for sale? We have a nice set of 3 SERVPRO franchises coming to market in North Texas and Oklahoma. $5.7m revenue $1.2m adj EBITDA DM me your email and I'll get you the rest of the info!
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@ShowMeYourCIM
Zach Whitt
2 years
@rivatez that to this
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@ShowMeYourCIM
Zach Whitt
2 years
Running a business with a newborn at home (not sleeping) is great because I get a number of opportunities to lay in bed and stare at the ceiling and wonder wtf I’m doing
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@ShowMeYourCIM
Zach Whitt
6 months
I know I shouldn't be shocked at this point, but I am consistently blown away by the delusions of grandeur, unresponsiveness and lack of awareness of searchers. I'm reminded daily that if these guys were truly great they'd be real entrepreneurs and start a business. Sad truth
@on_searching
OnSearching
6 months
I know I shouldn't be shocked at this point, but I am consistently blown away by the laziness, sloppiness and lack of intelligence of small business brokers. I'm reminded daily that if these guys were truly great they'd be middle market investment bankers. Sad truth
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@ShowMeYourCIM
Zach Whitt
4 months
Yall wasting money on gym memberships when you could search for FREE ROCKS! on marketplace
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@ShowMeYourCIM
Zach Whitt
8 months
Average searcher response: price unrealistic. margin too low. why would you even send this? Average $500m PE in Atlanta response: Congrats on the fantastic mandate! Unfortunately, this isn't a fit for us, but keep them coming. Let's get 18 in next time you're in town!
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@ShowMeYourCIM
Zach Whitt
3 years
This BizBuySell listing wording may have been plagiarized from a dictator’s speech, but no matter, I’m in.
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@ShowMeYourCIM
Zach Whitt
5 months
@TracesofTexas Everything changes, everything stays the same. I’ll be on the Guad this weekend near Sisterdale with a group of 10 guys looking just about identical to this (minus that good looking Chevrolet)
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@ShowMeYourCIM
Zach Whitt
10 months
Happy deal closing Thursday to all who celebrate
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@ShowMeYourCIM
Zach Whitt
2 years
Today is my 35th birthday, so I’m sharing 35 hot tips about small business acquisitions: 1: Try to have fun 2-35: Never trust a lender’s estimated closing date. Until next year! 👋
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@ShowMeYourCIM
Zach Whitt
27 days
This is my formal apology to SMBTwit buyers. I spoke with a broker this week and was reminded why you guys are not a fan of most. Brutal.
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@ShowMeYourCIM
Zach Whitt
2 years
I came into the blue collar world from software with idealistic views around transparency and was wrong on just about all of them. The *only* things that mattered to employees: How much is my weekly paycheck? Is my boss too much of an asshole? Maybe depends on industry.
@BoilerPlateCPA
M&A Focused CPA
2 years
Do you think companies should share profitability numbers with employees?
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@ShowMeYourCIM
Zach Whitt
5 months
Today is my 37th birthday, so I’m sharing 37 essential tips about small business acquisitions: 1: Try to have fun 2-37: Never trust a broker’s add-backs Until next year! 👋
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@ShowMeYourCIM
Zach Whitt
2 years
4/10 owners I talk with have a completely unsellable business based only on the intro call 3 out of remaining 6 have a completely unsellable business, based on the brutal financials I receive 2 out of final 3 can sell to a strategic 1 is MAYBE a good deal as defined on SMBtwit
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@ShowMeYourCIM
Zach Whitt
3 months
Breakdown on private flying so you can really compare to driving Preflight/Taxi: 25m Flight: 2h15m Taxi/postflight: 15m Getting this shitty tug to start and not scraping a wingtip on the hangar door while it’s 105* and the tug clutch *almost* works: the rest of my afternoon
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@ShowMeYourCIM
Zach Whitt
1 year
I don’t think any small businesses have a real, long term moat. Lots of buyers have a defensible moat on their must-have criteria. Maybe I’m looking at it wrong? Anyone have good real world examples of businesses that would be really difficult to compete with long term?
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@ShowMeYourCIM
Zach Whitt
5 months
“Cherish these times, because you’ll never get them back 🥰” Me, to myself when we get a babysitter on vacation so I can spend 4 hours alone
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@ShowMeYourCIM
Zach Whitt
3 years
It's fun to complain about how terrible brokers are when they use weird valuations like "2.8x SDE + FFE + seller's age" but in reality, who cares? You just need to agree on a number, and arguing about the method is unlikely to get you there.
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@ShowMeYourCIM
Zach Whitt
1 year
Get ready for the most insane SMB buying playbook from me, an industry pro! Want to be your own boss and crush it? 1) Get on BizBuySell and find a business 2) Offer a price that's higher than any other offers 3) Get an SBA loan 4) Profit
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@ShowMeYourCIM
Zach Whitt
9 months
Sellers: do not under any circumstances sign an LOI with 90-day exclusivity, a no-shop, and a requirement to forward any new offers to the buyer. Negotiating power strongly shifts in favor of the buyer after LOI. My ramblings on exclusivity for sellers:
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@ShowMeYourCIM
Zach Whitt
2 years
The worst thing about not owning a blue collar business anymore is not being able to buy a bunch of Milwaukee tools (Shop Expenses) without my wife knowing.
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@ShowMeYourCIM
Zach Whitt
6 months
hey boys been a minute yeah man yeah glad we could get out yeah for sure man yeah man perfect day man yeah for sure yeah
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@ShowMeYourCIM
Zach Whitt
2 months
The solution to business broker annoyances is to just make an offer - asking price too high? Make an offer - think inventory should be included? Make an offer - can’t get detailed data? Make an offer (perhaps an IOI) - won’t respond to your offer? Make a *better* offer
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@ShowMeYourCIM
Zach Whitt
7 months
Have an 11AM meeting today that’s a 4 hour drive away. No convenient airports (GA or Airline), but just far enough that driving sucks up a whole day. So I’ve hired a driver for the day. 15 minutes in and I think this might be the way to go!
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@ShowMeYourCIM
Zach Whitt
1 year
Private Equity will go small for add-ons, and they're more prevalent than ever. It's not uncommon for the groups we talk to to say "Oh yeah we don't have a minimum and we just closed a $250k EBITDA add-on" Chart source: Pitchbook
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@ShowMeYourCIM
Zach Whitt
7 months
Anyone looked at playground installation and equipment sales? We have one coming out in the couple of weeks that I’m getting pretty excited about. It’s unique in that it’s large enough for private equity, but also something a well-funded owner-operator or search fund could run
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@ShowMeYourCIM
Zach Whitt
5 months
How do buyers pay for businesses? Here’s a breakdown of the last 4 SBA-sized transactions we’ve closed, ranging from $300k to $1.3M TTM SDE: ⁃4.5x, 75% SBA, 6% seller note ⁃3.1x, 85% SBA, no note ⁃3.7x, 90% SBA, no note ⁃3.9x, 88% cash, 12% note, no SBA None included any
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@ShowMeYourCIM
Zach Whitt
2 years
@innoc_bystander @GritGrowthCap tbh both would crush me
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@ShowMeYourCIM
Zach Whitt
1 month
@yetanothrsearch Meh. Stay in the game. He’s wrong. You can win looking at deals they won’t be interested in. He may be, but very few are interested in deals where they need to bring in a CEO.
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@ShowMeYourCIM
Zach Whitt
1 year
@Miscountedcf @BoutiqueBurnout “is deferred revenue good”
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@ShowMeYourCIM
Zach Whitt
7 months
Founder of a $2.2m EBITDA facilities service business and the former-PE searcher who’s buying it at market value (1.9x) with a forgivable note and non participating rollover after “building a relationship” with the founder (buyer’s church elder) for years
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@ShowMeYourCIM
Zach Whitt
8 months
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@ShowMeYourCIM
Zach Whitt
2 years
Auto-reply today from a business owner I reached out to: "I made it! I have retired!" End of message. 👑
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@ShowMeYourCIM
Zach Whitt
6 months
How much buyer interest do small deals get? Here's a breakdown of one we closed last year. Small town Texas, small service business, very dependent on the owner. Not an easy sell! - 99 strategics/home services platforms contacted directly - 27 NDAs signed from outreach - 74
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@ShowMeYourCIM
Zach Whitt
4 months
@scottiebateman Wow - that's the definition of a perfect canyon turn executed about 10 seconds too late!
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@ShowMeYourCIM
Zach Whitt
2 months
Cart golf is an abomination and you should walk
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@ShowMeYourCIM
Zach Whitt
4 months
“That’s never going to pencil” falls flat for me as a purchase price negotiation. What you’re really saying is “That price doesn’t pencil for my structure” But not everyone uses 80% or 90% SBA and 10% seller note! We’ll always adjust price if we aren’t getting what we expected
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@ShowMeYourCIM
Zach Whitt
4 months
@SMB_Attorney @MillionairesPod How do we reconcile this?
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@ShowMeYourCIM
Zach Whitt
10 months
The perfect searcher outreach email does exist, and I received it today. - short, 5 lines - geography, industry, size - change of control - "we are serious and can close quickly" No bio, no picture of family, no mention of legacies and stewarding capital, no ask to pick my
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@ShowMeYourCIM
Zach Whitt
7 months
@QuilanFoster Twitter told me real millionaires don’t buy expensive watches!!!
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@ShowMeYourCIM
Zach Whitt
6 months
That 50% margin local service business your favorite new SMB guy loves to talk about is a mirage. Not sustainable. If I were starting a service business today I would double check any model with the assumption that net will settle around 15-25% once the business matures
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@ShowMeYourCIM
Zach Whitt
7 months
In the teaser email subject: "union company" In the teaser email body: "union company" In the teaser: "union union union union" "Looks like a great fit for us. NDA signed and attached" CIM sent "I don't do union. This is a pass."
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@ShowMeYourCIM
Zach Whitt
3 months
The majority of the replies are telling David he’s just thin skinned and the VC is being direct, not condescending. I disagreed, but what if I’m the thin skinned one? So I took a stab at rewriting the VC’s feedback email as directly as possible while removing the snark Turns
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@ShowMeYourCIM
Zach Whitt
2 months
My little town is an absolute gem and every local service business stays booked about 100% of the time. Someone needs to buy this, and I want in!
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@ShowMeYourCIM
Zach Whitt
7 months
What are we working on today that isn’t remotely productive? I’m bringing (more accurately, trying to bring) this 1998 Wrangler back to life
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@ShowMeYourCIM
Zach Whitt
2 years
If I’ve learned anything about SBA lenders on Twitter, it’s that they sure say “congratulations” a lot when a deal doesn’t work.
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@ShowMeYourCIM
Zach Whitt
7 months
@SMB_Attorney My favorite: Louie’s. Divey and great martinis Brick oven: cane rosso. NY style: GAP
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@ShowMeYourCIM
Zach Whitt
11 months
Who is buying micro saas deals and where do I find you? Think: $250k-$2m ARR. We're finding this to be the toughest buyer list to build, but I know there are holding companies out there buy smaller than the typical software-focused PE size.
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@ShowMeYourCIM
Zach Whitt
7 months
“Semi-Absentee” “10 hrs/wk” “part time” business for sale doesn’t always equal bullshit More often, I find owners who have been doing the same thing everyday for 10 years and kind of have it down. But they’re available 12 hrs/day 7 days/week, which creates the disconnect
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@ShowMeYourCIM
Zach Whitt
2 years
Twitter is good because a bunch of nobodies can tell the guy who *actually* runs an accounting firm that he’s a moron for liking this deal.
@patrickdichter
Patrick Dichter
2 years
On the surface this looks like a great accounting firm for sale. I’d rate it a 9/10 based on the listing.
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@ShowMeYourCIM
Zach Whitt
3 months
Been thinking about this recently. We’re two years into Trailhead (business brokerage) and finally feel like the flywheel is *maybe kind of* spinning. I wouldn’t call it a moat, but time and the long sales cycle is a barrier to entry in my business
@ShowMeYourCIM
Zach Whitt
1 year
I don’t think any small businesses have a real, long term moat. Lots of buyers have a defensible moat on their must-have criteria. Maybe I’m looking at it wrong? Anyone have good real world examples of businesses that would be really difficult to compete with long term?
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@ShowMeYourCIM
Zach Whitt
2 years
Around 90% of the LOIs we get on sub $3m don’t include a NWC provision. When we push buyers to clarify, the vast majority leave as is. Not saying one way is right, and I would certainly want it as a buyer… But know you’re swimming against the current if the deal is competitive!
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@ShowMeYourCIM
Zach Whitt
22 days
Multiples are a poor way to price businesses, but we use them because they’re easy to picture and discuss In reality, the buyer’s multiple should be the output of their model for that specific deal
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@ShowMeYourCIM
Zach Whitt
2 months
It’s still hot but the mornings are cooler. We have birds and know that front brought them in last week. Or the dove are gone and we talk about how that same front pushed them south. The birds are really moving over that one treeline that’s always about 100 yards away. Fall
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@ShowMeYourCIM
Zach Whitt
7 months
Millions of people watched two celestial bodies billions of years old and millions of miles apart line up, an event that has astonished and terrified millions (billions?) of people before us. And I think that’s pretty cool. It’s okay to be excited by things that don’t matter!
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@ShowMeYourCIM
Zach Whitt
1 year
@ClintFiore Hey would you mind sharing his name and contact info and the name of the business and 36 month P&L? No reason, just interested to know
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@ShowMeYourCIM
Zach Whitt
9 months
Brokers after a full day (Two 20 minute calls) of answering “Yeah that’s really a post-LOI request” to every buyer question.
@Camp4
Kevin Dahlstrom
9 months
Worth it.
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@ShowMeYourCIM
Zach Whitt
3 months
What AI financial modeling tools should I be checking out? The standard LLMs seem to be very good at analysis and insights and very bad at basic consolidation. I’m looking for basic consolidation of statements across years and business units.
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@ShowMeYourCIM
Zach Whitt
10 months
In between selling my business and starting my firm, I worked for a lower middle market IB. We lost a deal, that I originated, to some good ol’ boy business brokers. Found out the deal closed last year. $15M EBITDA. Buyer said the brokers didn’t know what they were doing and he
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@ShowMeYourCIM
Zach Whitt
1 year
@moseskagan @CRELeasingLawTX @friedmandave @PinkPoloShorts @ArtemTepler This is a terrible tragedy. Awful. Moses, there’s absolutely no reason to be sharing these details online right now.
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@ShowMeYourCIM
Zach Whitt
2 years
@MatznerJon 😂 ridiculous. To believe this, you have to think every person on the list wants to buy a business. Do you know a lot of attorneys looking for a landscaping company? I don’t.
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@ShowMeYourCIM
Zach Whitt
4 months
Platform > HoldCo
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@ShowMeYourCIM
Zach Whitt
2 years
@sbabmarks This is too simplistic. Salary says nothing about actual living expenses.
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@ShowMeYourCIM
Zach Whitt
5 months
Are there any examples of successful ESOP setups for smaller businesses? Let’s say $1-2M EBITDA Assuming the lending is even available, one of my main concerns would be if there’s enough cash to fund repurchase obligations
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@ShowMeYourCIM
Zach Whitt
1 month
Anyone trying to go from Austin-area to Dallas and back tomorrow with me? Round trip roughly 1/135th the cost of the Gulfstream below Bonus points that your spouse will ask if you're "really going to fly on that little death trap?"
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@ShowMeYourCIM
Zach Whitt
10 months
The brokers had a 5% flat fee 🫠 This is pain.
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@ShowMeYourCIM
Zach Whitt
1 year
@laughridge PowerBI is really pretty quick to learn and desktop version is included with Office 365
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@ShowMeYourCIM
Zach Whitt
11 months
What do you do when you meet someone working in your industry and realize they’re like 10x better at the job than you are? I thought I was pretty good This happened to me today and I’m reeling
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@ShowMeYourCIM
Zach Whitt
6 months
@RZachSmith @EnergyTransfer The ol left handed reverse grip huh
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@ShowMeYourCIM
Zach Whitt
1 month
superintelligence in a few thousand days and you’re arguing with dumb brokers about sde vs ebitda
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@ShowMeYourCIM
Zach Whitt
8 months
Business brokers when the conversation turns to real estate agent commissions being too high
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@ShowMeYourCIM
Zach Whitt
10 months
I represent sellers. This site is so buyer-centric that I'm finding myself feeling like we're enemies. It's seeping into my brain. How ridiculous! We all want to close deals. Buyers: the seller is not your enemy, I am not your enemy.
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