And that if that's packaged well, that's a $10 million valuation, but key man risk. Info businesses and when you start your own business, it's very difficult for you to remove yourself from it and actually have it be a sellable asset. So when I'm looking at buying businesses, I'm like, okay, cool. I want to see this as equity multiples and stuff that I could put on my balance sheet. So can you talk about the economic levers and how all this work is going to freaking blow out your net worth and your distributions here?

Yeah. So let's just say, for example, let's take a plant guy. One of the things is there's key man risk there with the partner, which is Matthew, the plant guy, but he's going to stay with the business. Let me just walk through the plan of what we're going to do with that company. There's two potential exit points that we might make on this. So one is, we came into this business doing $3 million a year. And the bottom line, it did about $600,000 in profit off that $3 million. So about 20%. Yeah. Yeah. Is that the right math? Yes. Yeah. Yeah. But about 20%.

20% is about what you'd expect.

Yeah. So that was what the business was doing. And the plan on this is we're going to grow it. And the two big exit points for specifically private equity, which is where we want to go sell to for this particular company is either once it's doing at least a million a year in profit, which will likely be this year or trending for that by beginning of next year, or 4 million. And why is that? Why is there this discrepancy between the one to four? I've learned this really just I have a coach that exited over a billion dollars on a big HVAC company and a couple other companies. And he's taught me these multiples and how the private equity world works. And so you grow that. Can you introduce me? Yeah, yeah, happy to. Sounds like a great podcast episode. Yeah, no, I could definitely introduce you. And so if you get to this million a year EBITDA mark, million a year profit, you can typically sell for, and obviously there's so many variables that go into this, but I'm just giving some, some, just some baselines. Typically you can get around a five times multiple. So if it's doing a million bucks a year profit, 5 million a year exit is reasonable to be looking for. The next step, stair step is that when you're doing about 4 million a year in profit, you can typically get about an 8x or more on when you go to exit. And so my question, and his name is Adam Coffey. My question is, well, Adam, why is it not at 2 million? Or why is it not at 3 million? He's like, it has nothing to do with the actual profit of the business. It has more to do with the private equity companies fund size that they're managing and the size of deals that they have to buy. There's smaller companies with smaller amounts of funds under the 4 million a year in profit. So there's less buyers in that pool. So the multiple is around five times is what he's having us plan to expect. When you're at 4 million plus, you can expect more of that 8x. 10 million in profit, he's like, the sky become more of the limit, depending on the type of business. But 10 to 12 to 14 times on a business of that size is very normal. And so with this particular business, the plant guy, my particular plan is growing it and I own about 50% of it is to grow it to the point where we're over a million. So we might make our exit in the next 12 months. But so if say, let's say, for example, we do that, we get it to, let's just say it's at a million in profit. We go and sell or I go and sell the half that I have in a private equity company comes in, they buy 60% of the company, they typically want to have majority. So they buy 10% from the partner Matthew there, that's the plant guy. And then I get fully bought out of my entire position. And they come in and they buy it out of five times multiple. Well, with that five times on a million, that's a 5 million bucks. And so there's $2.5 million that's going to be the lump sum for that. And that business, I'll share with you off of here because I don't want potential buyers to hear this somewhere and know where our entry point is, but I'll share with you offline. But that would be a lump sum of two and a half million bucks for that 50% while getting distributions along the way. So yes, like you're saying, lots of work, it's hard, challenges, lots of things to figure out and no problems to solve. But while I'm building other businesses, okay, when we go to sell that, okay, cool, I get a couple million dollar payday while I'm getting distributions along the way, while I'm getting distributions from other companies that I'm building, while I get payments from other investments that I have. The chunks of cash that you can get when you're growing these different companies is substantial, especially when you get it to at least over a million a year in profit. You can get a good juicy check within just a short period of time. Like we're like, again, like we're a year into that deal. And so you have within the next six to 12 months, if we decide to exit at that point to get a couple million dollar payday while getting distributions along the way, it's not a bad deal. While it's just and that's like a side deal. That's not my main business. That's just we got this thing. I have a leadership team that's helping implement. Yes, I'm helping on a lot of the strategy and problem solving, but it's a good deal. It's a little bit better than real estate as far

as the return goes.