AI Snips
Chapters
Transcript
Episode notes
Bought A Neglected Bakery Distributor
- Mike and partners bought a 25-year-old Italian bakery distributor that had an owner checked out and declining margins.
- They acquired it for low seven figures at roughly 2x earnings and planned a turnaround.
Verify Key Customers In Due Diligence
- Insist on meeting major customers during due diligence when customer concentration is high.
- Confirm they will continue buying before you commit significant capital.
Customers Fled After Closing
- After acquisition customers began leaving faster than expected as competitors slashed prices.
- The team realized they would lose money unless they pivoted the business quickly.