Acquiring Minds Doing It His Way: First-Timer Buys 2 at Once
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Nov 13, 2023 Mike Okhravi, former tech professional turned entrepreneur, discusses his experience buying a towing business and a flooring business within a short time period. He shares his philosophy on taking risks and moving fast, signs of a motivated seller, surprises after acquiring the businesses, and the challenges of operating two businesses at once. Mike also talks about getting back up after business failures and his love for the towing business.
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Mike's Journey from Tech to ETA
- Mike O'Kravi left a tech career after a failed telehealth startup and disillusionment with Silicon Valley culture.
- Personal loss of his father and his own business struggles propelled him to entrepreneurial acquisition as a middle ground.
Signals Matter in Small Deals
- A very low acquisition multiple often signals underlying challenges one must accept.
- In small businesses, proxies like tax returns and customer reviews provide critical validation when deep diligence is impossible.
Use Escrow to Motivate Sellers
- Insist on a portion of the sale price held in escrow for successful transition.
- This keeps sellers motivated post-close to adequately support the handover process.