Fresh Citrus Juice Manufacturer Squeezes Out $3M of EBITDA - Acquisitions Anonymous 243
whatshot 5 snips
Nov 7, 2023
The podcast discusses a unique citrus juice ingredients company specializing in frozen and liquid concentrates. They analyze its sudden growth and question its sustainability. They emphasize the importance of assessing assets for evaluating the business's true value. They explore a fresh citrus juice business that stands out by not using citric acid, discussing its competitive position and potential growth drivers. They also explore methods to bridge the equity gap in a business acquisition, including seller retention and equity contributions from the CEO.
32:20
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Question Rapid Growth Motive
Rapid recent growth in a long-established business should prompt scrutiny of causes and sustainability.
Owners retiring right after a growth spurt raises questions about underlying business health.
volunteer_activism ADVICE
Inspect Asset & Equipment Health
Always inspect asset-heavy businesses for deferred capital expenditures and equipment condition.
Meet the team and tour the facility to assess operational realities and hidden costs.
volunteer_activism ADVICE
Plan for Capex Post-Acquisition
Expect significant maintenance and capex expenses in the first year after buying capital-intensive businesses.
Buyers should pad forecasts for capital expenditures to avoid surprises.
Get the Snipd Podcast app to discover more snips from this episode
On this episode of Acquisitions Anonymous, Mills, Heather, and Bill discuss a niche citrus juice ingredients company focusing on its unique offerings in frozen and liquid concentrates. The team deliberates on the company's growth trajectory and potential challenges, including evaluating its asset-heavy structure and the risks associated with a rapid revenue increase. They emphasize the importance of understanding the competitive landscape and the implications of potential industry changes while considering various financing options for prospective buyers, including equity and seller roles.
Today's deal comes from Axial. Axial is a trusted deal-sourcing platform serving professional acquirers in the American lower middle market.
Thanks to our sponsors!
Employer Flexible will help you take action to streamline your company’s HR processes. They are the proud provider of flexible and adaptable PEO services. If you’re a small business trying to grow, and you’re struggling with a lack of internal HR or you’re just dissatisfied with your current HR setup, consider Employer Flexible as your next vendor for HR outsourcing services.
Double Jump Media is your one-stop shop for creating engaging, high-quality videos.
Double Jump is a boutique video production company with over a decade of experience creating professional, memorable videos for clients from around the globe and in various industries. All while helping those clients generate millions in sales through video content.
So, whether you’re rebranding a business you recently purchased, launching a new product or service, or want to look awesome, Double Jump is down to clown.
Visit www.doublejump.media to check out their portfolio and schedule your free consultation today.
Acquisitions Anonymous - #1 for business buying, selling and operating