Acquisitions Anonymous - #1 for business buying, selling and operating

This week, the hosts critique a questionable Instagram mass-DM automation tool, highlighting its meager revenue and high risks. They dissect claims about growth and margins, while also discussing potential customer use cases. Concerns about spam detection and competitor threats surface, along with warnings about platform vulnerabilities. They explore ways the business could pivot or improve but ultimately agree that this acquisition is not worth pursuing, making a strong case against it.

The hosts dive into an intriguing deal involving a New England insulation contractor, dissecting the role of utility incentives like MassSave and EnergyWise. They highlight potential pitfalls of relying on government subsidies and question the inflated normalizations of EBITDA. Concerns about the owner's hands-on involvement and hidden labor costs are raised, alongside discussions on the market's scalability and DIY competition. Ultimately, they find the sector appealing but deem this venture too reliant on subsidies and overly adjusted financials.

Discover a unique farrier training school in Idaho, priced at $3.5M, boasting impressive yearly revenue and cash flow. The hosts delve into the clever use of local horses for student training, eliminating the need for herd ownership. With a thriving social media presence of over 740K followers, demand is skyrocketing. They explore the school's facilities and the attractive lifestyle appeal it offers for horse enthusiasts. Tune in to hear about potential franchise opportunities and the importance of the founder's brand in retaining success.

The hosts dive into a fascinating port-a-potty rental business generating $4.1M in revenue, exploring its hefty $2M price tag and operational challenges. They discuss the balance between a blue-collar dream and an operational nightmare, covering unit economics and service costs. The conversation touches on issues like hiring difficulties for drivers and the strategic fit for potential buyers. The team highlights the importance of effective transitions to avoid losing customers and considers the potential for scaling with better operations and technology.

Dive into the intriguing world of a rapidly growing mattress company, which skyrocketed its revenue to $43M but faced plummeting margins. Discover how customer acquisition challenges and intense competition in the DTC space threaten its future. The hosts critically analyze product differentiation and the impact of big players like Amazon on profitability. They also explore whether seeking an equity partner is a wise choice amidst these challenges, debating if contrarian investment opportunities might emerge despite prevailing market headwinds.

Dive into the unconventional world of pet cremation with a Miami franchise that’s stirring debate. The hosts break down its lofty $1.5M price tag and questionable cash flow, discussing potential revenue from vet partnerships. They explore red flags, including branding confusion and the lack of a solid marketing strategy. The conversation also highlights the challenges of franchising in a niche market, while pondering whether buying or starting fresh is the better path for prospective buyers, especially veterinarians.

Discover the vibrant world of a pizza boat for sale in the stunning Virgin Islands. This unique listing includes three boats, a commercial pizza kitchen, and a liquor license, all for just $425K! The hosts dive into the thriving customer base and social media presence that makes it a hot spot. They discuss the potential risks of island living, such as hurricanes and lifestyle challenges. The conversation is filled with humor and insightful business analysis, making it an entertaining look at an unforgettable venture!

The hosts dive into an eye-popping worm farm in rural California, boasting an astonishing $1.5M cash flow on a $1.8M listing. They explore the unique business model involving live worms, castings, and premium soil blends. E-commerce pricing reveals surprisingly high margins on worm sales. Concerns arise about the lease structure and inflated financials, prompting discussions on due diligence and financing options. With operational staffing considered, the hilarity of the situation is matched only by the potential profits!

The hosts dive into a $4.5M rehab facility acquisition, dissecting its $4M revenue and $1M SDE. They analyze declining utilization trends and question questionable future revenue assumptions. Lender risks and the importance of insurance versus private pay are examined, alongside the complexities of billing practices. Regulatory challenges related to corporate practice laws are debated, highlighting significant risk factors. Ultimately, the team concludes that this mid-market facility presents too many red flags for acquisition.

In this rerun, the hosts dive into the pros and cons of a $65K Christmas tree lot deal in Utah. They weigh the cash flow potential against the challenges of a short sales window and reliance on location. The discussion includes the benefits of buying versus building relationships and the risks of not having a guaranteed lease. They also compare Christmas tree sales to other seasonal pop-ups and explore innovative ideas for staffing and supply challenges. Ultimately, they're split on whether to buy or start fresh.