New Podcast: How This Entrepreneur Acquired A Business That Went Bankrupt, And What He'd Do Differently Next Time

Hello SMB Deal Hunters!

I’m excited to share a new interview with Justin Willess, a former mechanical engineer who acquired a construction business, Iron Pony, in 2022.

Unfortunately, after growing the business dramatically from $12M to $18M in one year, Justin had to shut the business down in September of 2023.

Justin was generous enough to share with us his honest story of what exactly went wrong (and what he could’ve done differently) so we can all learn from his mistakes.

Today's issue is sponsored by SMB Diligence, the platform I helped start for matching business buyers with vetted legal counsel and Quality of Earnings providers.

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INTERVIEW

In the interview with Justin, we discuss:

• The one major step Justin skipped in diligence that he wishes he paid for in hindsight

• How Justin's relationship with the seller deteriorated quickly post-sale

• The importance of having sufficient working capital

• How the business grew from $12m to over $18M at the end of the first year

• How one clause in the seller note ultimately led Justin to shut down the business

• Why Justin is still motivated to get back into another acquisition at some point

• And more!

👉 Watch the full 57-minute interview with Justin

PRESENTED BY SMB DILIGENCE

Here’s Why You Shouldn’t Skip Due Diligence…

A friend of mine put a business under LOI and asked me for my advice.

I recommended he contract a 3rd party due diligence partner to rebuild the company's P&L from scratch.

Turns out their EBITDA was off by 2x 😳

Enter SMB Diligence.

SMB Diligence is the platform I helped start for matching business buyers with vetted diligence providers, from M&A lawyers to Quality of Earnings providers.

Their network of experts has worked on hundreds of small business transactions (including many from the SMB Deal Hunter community).

👉 Get introduced to due diligence experts today

COMMUNITY PERKS

• Want to invest passively in SMB acquisitions? Get access to investment opportunities.

• Get a personal introduction to my preferred SBA 7(a) lender, non-SBA lenders, Quality of Earnings providers, or legal counsel

• Raising capital for your deal? I’ll connect you with investors from the SMB Deal Hunter Community.

• Interested in selling your business? I’ll help you connect with buyers from the SMB Deal Hunter Community.

THAT’S A WRAP

Want me to interview you for my podcast? Hit reply.

See you tomorrow with some new deals!

-Helen Guo
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Disclaimer

This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only; SMB Deal Hunter does not verify nor confirm information. SMB Deal Hunter is not making any offer to readers to participate in any transaction or opportunity described herein.