Should we buy this airplane ad business? - Acquisitions Anonymous episode 165

Michael Girdley (@Girdley) and Mills Snell (@thegeneralmills) talk about a company that offers services related to aerial advertising. We discuss the deal structure, margins, and the significant pricing power enjoyed by businesses that operate billboards. Is there a moat around this business? Do we think it’s better to rent a billboard?Company:   Aerial Advertising Service ProviderLocation:   21 States - USStated Financials:   2022 TTM $ 3.5M    |   2022 Adjusted EBITDA   $ 610,000Asking Price:   Unlisted-----Thanks to our sponsor!Acquira - your acquisition in a box service. Acquira offers training to help you find, evaluate, and close on a small business. All in under a year.    Their team has bought over 30 businesses across  3 different portfolios. Whether you’re just beginning your business search, actively pursuing a specific deal, or looking to grow your existing company, Acquira’s training and team of experts can help. Their M&A advisors provide individualized support through the entire process. They will provide guidance toward your offer structure, drafting your LOI, in-depth due diligence, and securing funding for your deal.  They will even fly out to the business with you.  Once you acquire a business, they can help you grow it too.Acquira’s ACE Framework will help you transition that business from owner-operated to management-led, increasing profits and allowing you to step away from the daily operations and enjoy doing more of what you love.  And if “more of what you love” is buying and growing more businesses, they can help you build a portfolio of businesses, and eventually get liquidity from that portfolio by selling it to a financial buyer, or selling it to its employees.Space is limited each month, so if you’re looking to acquire a cash-flowing business this year, sign up now at acquira.com/pod-lander-----Show Notes:(00:00) - Introduction(00:54) - Our Sponsor is Acquira.com(02:26) - We are looking to do more larger deals!(03:46) - Deal & financials: Aerial Advertising Service Provider(07:34) - What's happening to the margins?(08:38) - How do billboard businesses earn a lot of pricing power?(10:24) - What is this company's buy vs. build thesis? (13:34) - The low Total Addressable Market Moat(14:12) - How would we build a moat around this business?(17:54) - What’s the case for medieval times?(20:42) - Is it better to rent a normal billboard?(23:03) - Will drones be a good idea?(24:26) - What may have affected this business to grow in revenue?Additional episodes you might enjoy:#164 - Annual Report Filing Software#163 - Make $2.3M/yr owning a Flight School#Subscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [email protected]

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