For many guests on Acquiring Minds, buying a business is a path to a lifestyle. It's part of a larger vision of what they want for their career, their time, their family. Today's guest is a shining example. Dan Drake and his wife wanted to move to Bend, Oregon. Transplants from the Midwest, they were living in Seattle but really had their heart set on settling down and raising kids in Bend, that beautiful, growing community of 100k in Central Oregon. So when Dan decided to search, his geographic criterion was tight: just Bend, Oregon, and the surrounds. Which meant he was likely going to have to compromise on other criteria. And he did - on size. The business he bought generates around $140k in SDE and has 3 employees. Now there is obviously a lot of risk there, which Dan and I spend time on. But recall: there is a vision. So some of that risk is absorbed by Dan's commitment, by his intention to not just generate a return but to truly become a member of the Central Oregon business community. Enjoy this interview with Dan Drake, owner of Industrial Applied Electric.
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00:00:00. Dan’s background
00:04:29. Dan learns about Entrepreneurship through acquisition
00:07:48. Search criteria for business acquisition
00:10:51. Financial planning and expectations
00:14:04. Initial impressions and real estate deal
00:20:20. Understanding the business model
00:26:14. Small team with key man risk
00:31:01. Building rapport with employees
00:39:05. Deal Structure and terms
00:43:15. Negotiating with the seller
00:49:07. Financial concerns during diligence
00:56:22. Understanding balloon payments
01:09:23. Focusing on Central Oregon
01:15:31. Final thoughts
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ABOUT Acquiring Minds
Acquiring Minds is a podcast about buying businesses. Acquiring an existing business is an awesome opportunity for many entrepreneurs, and host Will Smith talks to the people who do it. New episodes 2x per week.
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