John Nunemaker

I think I would, I would do it. I would just, I would have to learn more about how people do that. Like, and even in that, again, that podcast episode that about like buying five, I can share the link later or whatever, but it's like buying five, you know,

I think I would, I would do it. I would just, I would have to learn more about how people do that. Like, and even in that, again, that podcast episode that about like buying five, I can share the link later or whatever, but it's like buying five, you know,

manufacturing companies in that scenario that guy was like they do like the kind of like a PE model where they like basically they're like look we come in and we run it and like one there's you know six partners in the group and each of those partners will personally guarantee one business And so right now they have three guaranteed. And then they have, when they do that, they do two things.

manufacturing companies in that scenario that guy was like they do like the kind of like a PE model where they like basically they're like look we come in and we run it and like one there's you know six partners in the group and each of those partners will personally guarantee one business And so right now they have three guaranteed. And then they have, when they do that, they do two things.

So one, they charge a management fee to the business based on EBITDA. So like if, you know, they buy businesses that already have good profit margins, they take a slice of that profit margin and for everyone who's in the management group. And then they'll also do, you know, like, whatever first 8% preferred return in the event of a sale, you know, goes to the investor.

So one, they charge a management fee to the business based on EBITDA. So like if, you know, they buy businesses that already have good profit margins, they take a slice of that profit margin and for everyone who's in the management group. And then they'll also do, you know, like, whatever first 8% preferred return in the event of a sale, you know, goes to the investor.

And then after that, it's like split based on, you know, equity and all those kinds of things. So And they bring in basically different people in every single deal. So I wouldn't say different people from the standpoint of like, well, you know, Adam's in this deal and Garrett's in this deal or stuff like that. It's more like we've got five people each putting in like 100,000 or 50,000.

And then after that, it's like split based on, you know, equity and all those kinds of things. So And they bring in basically different people in every single deal. So I wouldn't say different people from the standpoint of like, well, you know, Adam's in this deal and Garrett's in this deal or stuff like that. It's more like we've got five people each putting in like 100,000 or 50,000.

And so now we have, you know, whatever, 250, 500,000. And then we're going to personally guarantee do an SBA loan for the other half. So their debt, you know, to like whatever ratio is basically like half.

And so now we have, you know, whatever, 250, 500,000. And then we're going to personally guarantee do an SBA loan for the other half. So their debt, you know, to like whatever ratio is basically like half.

Cause again, then it's like, well, if the business went all the way in half, you'd still be able to run it, which is, it's pretty rare for a business that's been around for, they stick to like, you know, 60, 30, 60, 80 years, like, you know, 30 plus employees. So they know that it's like all the knowledge is not with one owner in a 10 person company. or things like that.

Cause again, then it's like, well, if the business went all the way in half, you'd still be able to run it, which is, it's pretty rare for a business that's been around for, they stick to like, you know, 60, 30, 60, 80 years, like, you know, 30 plus employees. So they know that it's like all the knowledge is not with one owner in a 10 person company. or things like that.

So again, a different scenario here where we have software and leverage and stuff and it's less of a concern. But I'm like, that idea is really fascinating to me. And then, so then, you know, the group, the six, each have a share in each of the companies they acquire. One of them runs each of the companies they acquire. One of them personally guarantees, not necessarily the one they're running,

So again, a different scenario here where we have software and leverage and stuff and it's less of a concern. But I'm like, that idea is really fascinating to me. And then, so then, you know, the group, the six, each have a share in each of the companies they acquire. One of them runs each of the companies they acquire. One of them personally guarantees, not necessarily the one they're running,

And then they also kind of, for lack of a better word, they shard their investors across all the deals as well. So no investor is heavily invested in one of them. And I'm like, I actually really like that model. I think that's sick. Because now they're doing the SBA loans, which means they can personally guarantee but not actually put up the collateral.

And then they also kind of, for lack of a better word, they shard their investors across all the deals as well. So no investor is heavily invested in one of them. And I'm like, I actually really like that model. I think that's sick. Because now they're doing the SBA loans, which means they can personally guarantee but not actually put up the collateral.

So you don't run out of collateral and run out of money. But I'm like, I don't know all that financial stuff yet. I haven't done any of that. So I'm like, I'm just going to start simple. And I'm like, look, I got some friends. They had a little bit of cash too. I got the collateral. Let's put it together. Make it look, you know, like a three to five year payoff.

So you don't run out of collateral and run out of money. But I'm like, I don't know all that financial stuff yet. I haven't done any of that. So I'm like, I'm just going to start simple. And I'm like, look, I got some friends. They had a little bit of cash too. I got the collateral. Let's put it together. Make it look, you know, like a three to five year payoff.

If it's an eight year payoff, and we take more cash out, that's fine. You know, it's just like, ideally, I don't want to have my house on the hook forever, you know, or maybe I pay off the loan at some point, like, let's say box out does sell for some reason, like that we we're not planning on it. Now. We're not talking to anybody. We don't have any interest in that. But like,

If it's an eight year payoff, and we take more cash out, that's fine. You know, it's just like, ideally, I don't want to have my house on the hook forever, you know, or maybe I pay off the loan at some point, like, let's say box out does sell for some reason, like that we we're not planning on it. Now. We're not talking to anybody. We don't have any interest in that. But like,