Experience w/ miniature acquisitions (e.g. 1-2 employees, SDEs <$100k)

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July 05, 2022

by a searcher from University of Virginia in Red Bank, NJ, USA

I'm looking to connect with someone who has successfully acquired a miniature main street business###-###-#### think only 1-2 employees and SDEs under $100k. I'm evaluating a couple of extremely small opportunities that I believe can be run mostly outsourced or with a single employee. Therefore they would be small investments with an extremely high ROIC that I could keep and manage while doing something else full time. I'd like to run a few things by someone who has experience doing this.

Please don't comment as to why this is a terrible idea. I'm well aware of the risks and why I shouldn't pursue this; I'm interested in learning the opposite perspective from the traditional consensus. Thanks!

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Reply by a searcher
from Purdue University in Prosper, TX, USA
hahahaha love the "please don't comment as to why this is a terrible idea"....as I've started my search I've come across 4-5 deals in this range that have me thinking the same thing! I haven't successfully acquired one yet, but I actually have a LOI out right now on one that fits this profile and in talks with another I plan to go after. You should listen to this weeks Acquiring Minds podcast with Ujwal Velagapudi...this is pretty much what he did and parlayed it into a SMB empire.
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Reply by a searcher
in Newport Beach, CA, USA
Have seen some pretty successful miniature rollups. Buy a bunch of micro-businesses at 2-3x EBITDA and eventually try to exit at 5-6x while obviously also bringing operational efficiency. However the ones I saw were pretty easy in nature to roll up, all work was easily outsourced, low costs, etc. (Internet Based Business)
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