I know I've learned that buying small is generally not a good idea. I have an Auto Shop nearby (and want to do a rollup, but there are lots of tiny operations not many platform opportunities) but it barely makes money (actually loses money but with seller add-backs it makes $124k). I do see some extreme upside if I get it right (has the lift capacity I like) but worried that if I don't get it right it will require a huge time investment for very little money. I do have an operational expert that has been in the space for 20+ years and could help me but feel there is quite a bit of risk.
I have another Auto Body Shop, more of a platform business but it's 3 hours away. I have a young family and we aren't moving. It does have some upside and I am stepping into some solid cash flow. The hours of operations also allow for me to stay there for 4 days and have the long weekend home with the family if I am not working outside business operations which if I am head down making things happen, I would work those longs days while they are open and hopefully set myself up for having more freedom the days I am back home. I would again have the same industry expert for this opportunity plus other contacts I have made.
Then there is entertaining only opportunities outside of Auto Repair focused on Home Services and staying locally without an expertise partner per se but I could learn the business and then figure out a vertical/horizontal rollup strategy after running a business for some time.
I'm trying to gauge what makes the most sense. What are strategies or frameworks people use to help them make choices that seem like they are all reasonable opportunities?
Thanks in advance.
What are the strategies or frameworks used to choose the path to take?
by a searcher from State University of New York College at Cortland
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I would possibly entertain the 3-hour-away one, but be prepared to make unplanned and frequent trips out there, unless you have an operator in place that you trust fully.