This episode of Acquisitions Anonymous features a rerun of one of the podcast’s most interesting interviews with The Wolf of Franchises. The hosts explore common misconceptions about franchising, shedding light on the intricacies of franchise ownership, investment, and growth.

Episode Highlight:

• The Wolf of Franchises discusses the benefits and challenges of owning franchises, emphasizing how this can be a lucrative path for those not interested in starting from scratch.
• Key takeaways include how large multi-unit franchise owners scale their businesses and live off cash flow or profits from sales.

Key Points:

1. Who is the Guest?
   • The Wolf of Franchises is a well-known Twitter personality and expert in the franchising space. With seven years of experience in the industry, he worked for a multi-unit owner group and then transitioned to a franchise investment firm.
2. Main Topic - Franchising as a Business Model:
   • Franchising offers an entry point for those interested in business ownership without building a company from the ground up.
   • There's transparency in franchise financials, thanks to disclosure documents, but the industry is often misunderstood.
3. Challenges and Misconceptions:
   • Not all franchises are equally profitable; there's a distinction between the top-performing ones (e.g., McDonald's, Orange Theory) and lower-tier brands (e.g., Subway, Curves).
   • The scalability of franchises offers opportunities for those interested in owning multiple locations, but there are risks involved, including potential long payback periods for mediocre brands.
4. Franchising Success Tips:
   • Due diligence is essential when selecting a franchise. There are over 3,000 brands, but only a small percentage are highly profitable.
   • Multi-unit ownership is often the key to generating life-changing income. Starting with one franchise and scaling over time is a proven strategy.

Why You Should Listen:This episode is packed with insights for aspiring entrepreneurs or investors curious about the franchise model. Whether you're considering opening a franchise or investing in one, the episode offers valuable advice on how to assess potential opportunities and avoid pitfalls.

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In today’s episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen analyze a unique niche business—a high-margin sneeze guard manufacturing company based in California. With an asking price of $1.25 million and an impressive 66% margin, this company specializes in sneeze guards and shower doors, with customers across all 50 states. The hosts break down the numbers, explore the e-commerce-driven business model, and examine the challenges of operating out of high-cost real estate. Tune in to find out if this sneeze guard business is worth the price or just a niche oddity.

Key Points Discussed:

1. Business Overview – A sneeze guard manufacturing company with $750,000 in gross revenue and $500,000 EBITDA.

2. High Margins, Low Sales – The puzzling combination of high margins and relatively low sales volume.

3. Growth Potential – How online sales and proprietary software could fuel future growth.
Real Estate Dilemma – The complications of operating in an expensive California market with low rental income.

4. Niche Market Analysis – How COVID-19 impacted the sneeze guard business and whether it's a sustainable investment.

Sponsor: Acquisition Lab

If you’re serious about buying a business, check out the Acquisition Lab. It’s the leading community for searchers seeking to buy small businesses. Gain access to tools, resources, and a community of fellow searchers to help you through your journey. Whether you’re a first-time buyer or an experienced entrepreneur, the Acquisition Lab can help. Visit Acquisition Lab to learn more.

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In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell discuss a unique business: a premier manufacturer of wooden roof and floor trusses. With over $5 million in EBITDA and $11 million in annual revenue, the group dives into the pros and cons of this construction product business located in the southeastern U.S. They explore the implications of the company’s geographic location, customer concentration, and reliance on the construction market. Plus, Mills shares insights from a similar business acquisition and how it relates to this deal.

Key Points Discussed:

- Geographically Moated Business: How location plays a significant role in the success of this truss manufacturing company.
- Customer Concentration: The risks and opportunities of working with building supply companies and contractors.
- Cyclical Industry: What happens to businesses like this one during economic downturns in the construction sector.
- Trusting the Trusses: The importance of high-quality, engineered trusses in modern construction and why they are in demand.

Thanks to this week’s sponsor:

Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

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For inquiries or suggestions, email us at contact@acquanon.com

In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell dive into the sale of a sleep disorder and attention deficit disorder medical practice based in Detroit, Michigan. With an asking price of $5 million and a net cash flow of $1.8 million, the team discusses the complexities of owning a medical practice, the revenue potential from sleep apnea treatments, and whether an owner needs to be a licensed physician. They explore the practice’s payer mix, potential technological disruptions, and whether owning the CPAP distribution side of the business is key to profitability.

Key Points Discussed:

- Payer Mix and Margins: How the mix of private insurance, Medicare, and Medicaid impacts the clinic’s value.
- Physician Ownership: Whether a non-physician can own this practice through an MSO (Medical Service Organization).
- CPAP Business Model: Understanding whether the clinic profits from the sales and maintenance of CPAP machines.
- Market Trends: The increasing prevalence of sleep disorders and the residual income potential from repeat visits and equipment servicing.

Thanks to this week’s sponsor:

Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

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• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at contact@acquanon.com

In this episode of Acquisitions Anonymous, hosts Michael Girdley, Bill D’Alessandro, Heather Endresen, and Mills Snell evaluate a nationwide refrigerated and dry freight trucking company with $4.7 million in EBITDA. The discussion touches on the challenges of owning a trucking business in a volatile freight industry, the risks associated with owning 35 trucks, and the pros and cons of doubling fleet size to 60 trucks. They also explore the cyclical nature of the trucking industry and whether selling trucks and focusing on freight booking could increase profitability.

Key Points Discussed:
• Asset-Heavy vs. Asset-Light: The risks of owning trucks and the benefits of shifting to a more asset-light model.
• Cyclical Industry Risks: The impact of the freight market’s cyclicality and how businesses handle booms and busts.
• Growth Through Expansion: Why expanding the fleet might not be the best strategy in a saturated market.
• Logistics and Dispatch: The role of 24/7 dispatch teams and owner-operators in managing the logistics nightmare of trucking.

Thanks to this week’s sponsor:
Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at contact@acquanon.com

In this episode of Acquisitions Anonymous, hosts Michael Girdley and Heather Endresen evaluate a metal recycling business for sale in Pennsylvania. With $1.1 million in cash flow and $20 million in annual revenue, the conversation explores the business’s asset value, including $2 million in inventory and $2.5 million in equipment. Heather and Michael also dig into key factors like the potential impact of commodity price fluctuations, the importance of owning the real estate, and the environmental concerns tied to the business’s location.

Key Points Discussed:

- Inventory & Pricing Risk: The challenge of managing $2 million in inventory and how commodity pricing impacts profitability.

- Environmental Concerns: Why it’s critical to understand the environmental state of a property in a recycling business.

- Location Dependence: The importance of owning real estate in a business heavily tied to its physical location.

- Low Margins: How operating at a 5% net margin presents risk and the challenges of maintaining profitability in a low-margin industry.

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Thanks to this week’s sponsor:

Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at contact@acquanon.com

In this episode of Acquisitions Anonymous, hosts Bill D’Alessandro and Michael Girdley dive into a unique opportunity: a youth residential treatment facility with a $750,000 cash flow, up for sale at $5.5 million. The conversation explores key challenges, including recruitment difficulties and staff-to-youth ratios that impact the facility’s ability to operate at full capacity. They discuss whether the rural Utah location enhances the value due to outdoor programs or limits it due to labor shortages.

Key Points Discussed:

- Staffing Challenges: How recruitment issues affect profitability and capacity in residential treatment centers.

- Real Estate Considerations: Whether the $2.7 million in real estate valuation is justified and how owning the property factors into the deal.

- Mission-Driven Work: The pros and cons of running a business that changes lives but can be emotionally taxing.

- Baumol’s Cost Disease: A deeper dive into how rising wages in one sector affect staffing costs in others.

✉️ Subscribe to our Newsletter and get more deals like this every week**: https://www.acquanon.com/newsletter

🎧 Listen to our full episodes on your favorite podcast platforms**: https://www.acquanon.com/episodes

Thanks to this week’s sponsor:

Acquisition Lab and their team have been longtime supporters of the pod. Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood at chelsea@buythenbuild.com and mention us ;)

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at contact@acquanon.com

In this episode, we reviewed a $4.5M plumbing and HVAC business with a strong focus on repair and replacement services in the Northeast US. With 1.4M EBITDA and 2,500 active accounts, it has a balanced revenue stream, recurring income, and no exposure to new construction. The big question is whether the impressive 33% margins are sustainable as the business scales.

Thanks to this week's sponsor:

Acquisition Lab and their team have been longtime supporters of the pod.

Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.

If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood, chelsea@buythenbuild.com and mention us ;)

Business At A Glance
Revenue: $4.5M (2023)
EBITDA: $1.4M
Customer Base: 2,500 active accounts
Location: Northeast US
Revenue Mix: 60% plumbing, 40% HVAC
Team: 23 employees
Focus: Repair & replacement only
What We Thought
Customer Base Questions
John raised concerns about the definition of "active" accounts. If the 2,500 accounts are truly recent, it's impressive. Otherwise, it could indicate a weaker client base than advertised.

Multi-Trade Challenges
At $4M, managing both plumbing and HVAC might hurt focus. John thinks focusing on one service would improve margins.

Northeast Market Strength
The business benefits from higher ticket prices in the region due to hydronic heating systems, but unionization could pose a challenge depending on location.

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