Chelsea Wood from Acquisition Lab joins the discussion, shedding light on the intricacies of business acquisitions and the dynamics of potential buyers. The team dives into a mysterious $6.3M Florida natural products business, revealing the perplexities of its vague listing and questionable earnings claims. They tackle the impact of gender in M&A environments and explore the potential of software carve-outs. Plus, the conversation highlights the ups and downs of franchising and the importance of scrutinizing buyer qualifications.
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insights INSIGHT
Gender Differences in Buyer Confidence
Female buyers often doubt their readiness despite strong qualifications.
Male buyers tend to overestimate readiness without experience.
insights INSIGHT
Natural Products Often Outsource Manufacturing
Most natural products companies outsource manufacturing to certified contract manufacturers.
The business likely holds product licenses rather than produces in-house.
insights INSIGHT
Software Carve-Out Potential in Traditional Businesses
Some acquisition entrepreneurs seek traditional businesses with proprietary software to carve out SaaS products.
This hybrid approach leverages both existing operations and scalable software models.
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In this episode, Michael, Mills, Heather, and special guest Chelsea from Acquisition Lab unpack a listener-submitted listing: a $6.3 million natural products distribution and retail business in Orlando, Florida. The team grapples with the vagueness of the deal memo—no clear product category, a suspiciously low inventory number, and a business claiming $1.4M+ in steady earnings while only requiring 10 hours a week from the owner. Is it a hidden gem, or is something being left out? Along the way, they explore gender dynamics in M&A, software carve-outs, and what makes a quality broker.
Key Highlights:
- Discussion on gender differences in business acquisition readiness and confidence - Analysis of a Florida-based business with ~$10M revenue and $1.4M in discretionary earnings - Pros and cons of vague listings—and what might be hiding behind them - What “SBA financing available” actually means in context - Potential for software carve-out and SaaS value in traditional businesses - Jackie Hirsch praised as a high-integrity broker
Acquisitions Anonymous - #1 for business buying, selling and operating 