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Congrats all! Mind elaborating a bit more on how this is different than selling to some PE bros though? Also, for anyone reading this, if you’re a high income
by WORMS_EAT_WORMS 5y ago
Congrats all! Mind elaborating a bit more on how this is different than selling to some PE bros though?
Also, for anyone reading this, if you’re a high income individual or have come into a windfall from RSUs/Stonk/inheritance/coin there’s marketplaces and plenty of access to brokers if you want to buy your own shop.
Lot of sellers under $1MM ARR will sell their company at like 2-3x (!) which if you can just maintain or improve just slight, a couple years becomes pure cash vehicle. I know a few folks who navigate this space and make great money buying very small and profitable businesses too low-profile for PE to care for.
- o___ 5y ago> windfall from RSUs/Stonk/inheritance/coin there’s marketplaces Do you recommend any specific marketplaces?
- cjisakow 5y agoWe are both entrepreneurs ourselves, and have lived through working with PE shops that might gordon gecko style fire everyone and flip. Its not our model, our ideal seller stays and grows within Moonshot, where we can both create more value. That being said there are sellers ready to cash out, and for them we have a platform so we can operate and grow the business. On your point on brokers, we get our leads a variety of ways, including by building great relationships with brokers. And your last point for sure the higher the ARR the higher the multiple generally (at extreme someone like Proctor and Gamble trades 20x-40x). What we find from our experience is that there are folks that are asset rich (meaning the company is ebitda positive) but cash poor because all the money goes back into inventory/product launches etc... Moonshot is flexible and can help them take money off the table, and then get upside in the future.
- WORMS_EAT_WORMS 5y agoThanks for response. Super interesting and cool. Wish you all the best!
- cjisakow 5y agooh i also see you know a lot of folks who buy companies, if they grow them to $3M+ and are looking to take money off the table send them our way! We pay referral fees for successful deals https://www.moonshotbrands.com/leads https://www.moonshotbrands.com/leads