Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.
Key points from Tyler's acquisition:
- Blackhawk Fiberwerx was doing $500k in sales with $100k in profit
- Seller was a retiring and overwhelmed 80-year-old
- Tyler couldn't due-diligence the deal to death — had to "cross fingers and dive in"
- Huge margin of safety. Business was selling for the combined value of its assets, so if business collapsed Tyler could recoup loan by selling assets.
- SBA wouldn't make a loan without soil testing the land, so Tyler got a loan from a small regional bank
Reach Tyler Deike:
Official episode page & full show notes at AcquiringMinds.co:
