Acquisitions Anonymous - #1 for business buying, selling and operating - A $3mm profit a year water delivery business! - Acquisitions Anonymous episode 155

Episode Date: January 4, 2023

Want to receive this listing in your inbox? Signup for our weekly newsletter:https://www.getrevue.co/profile/acquanon-----Michael Girdley (@Girdley), and Mills Snell (@thegeneralmills) talk about a deal we liked: A Drinking Water Delivery Service based in Texas.We dig into how this business operates, potential challenges on the customer side, head & tail winds, and Location based risks.How do Power Law returns work for PE and our day-to-day? What are our thoughts on the Capital Expenditure budget for this company? Learn more about this deal as you listen to this episode.Company: Drinking Water Delivery ServiceLocation:TXStated Financials:$3M - SDE   |   $5M - FF&E   |   $6.5M Gross RevenueAsking Price:$18M-----Thanks to our sponsors!CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.-----Show Notes:(00:00) - Introduction(01:17) - Our Sponsor is CloudBookkeeping(02:44) - Catch up with Mike and Mills(03:52) - Deal & financials: TX Drinking Water Delivery Service - $3M SDE(07:02) - What does this company do?(08:26) - What is the customer base risk associated with this deal?(10:54) - How do we think about CapEx for this business?(13:32) - What is the catch with Oil Field companies?(15:32) - How do Power Law return work for PE and our day-to-day?(21:05) - What is the location risk associated with this deal?(22:58) - What’s so interesting about the cemetery business?(23:47) - We’re looking for $3 to $5M in SDE/EBITDA businesses, send ‘em over!(26:21) - How stable can this business be on a day-to-day basis?-----Additional episodes you might enjoy:#153 - Will Bill buy this company for Girdley’s Christmas present?#152 - Should we buy this Ambulance company?#151 - Should we buy this Pot Business Credit Card Processor?#150 - Let’s buy a medical staffing business#149 - Is this car spinner business a good side hustle?#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse PujjiSubscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [e-mail]

Hey, everybody. Welcome back to the world's best podcast about small business acquisition and investing. Acquisitions Anonymous. I am Michael Gerdley, one of your co-host. Today, Mills and I had a great time talking about a big boy, a big business that does water delivery, drinkable water delivery out in West Texas near the oil fields of Midland. So super interesting. This is actually a pretty good deal. Like we like this business. And, you know, there may be something going on. We don't know, but it's good enough that it's like, I think you'll like this. If you want to move to Midland. So we dug into it, had a ton of fun. Two things real fast. Number one, thanks to our sponsor Cloud Bookkeeping. There'll be an ad for them. Just a second. Please patronize them. They have great for us to make sure we don't lose money doing this podcast, which is amazing to us. And then number two, if you would, leave us a review on Apple Podcasts. We are trying to go higher and more popular and help more people by doing this podcast. And if you leave us a review right now, hopefully that arrives with Jive Stars, that would help us. in terms of getting more popular and getting the message out to more people.

And that's why we're doing this. We're not making a ton of money doing this or getting rich. We are breaking even, finally, which is great. But your help would be a great help to us to leave us a review, and that'll help the message get out to others. So here's the episode. Thanks a bunch. Hey, Michael here.

Want to talk to you about today's sponsor for the episode, which is cloudbookkeeping.com. So cloud bookkeeping is actually run by my neighbor, Charlie. So I've met him in person and can attest that he's, He's a real human being and a good person. And what cloud bookkeeping does is offer a full suite of bookkeeping services all in the cloud for you around QuickBooks and other technologies that you're using as a small business owner. So if you're interested in getting the bookkeeping part of running a business off your plate

and focusing on running your business, Charlie and his team are one to call. They can put together a bunch of other stuff in terms of helping you. manage and grow your business besides just bookkeeping, sophisticated reporting, definitely helping you get your quickbooks online set up in the right way, and a number of things around payroll as well. So definitely know them and recommend them. If you want to find out more about cloud bookkeeping, you can go to their website at cloudbookkeeping.com,

reach out to Charlie. I know many of you have and see if he can help you make running your business easier and more fun by letting them help with a lot of the bookkeeping solutions. And when you call, mention this podcast, it would help us and help Charlie know that we're supporting him as well. So thanks a bunch and cloudbookkeeping.com as the sponsor for today's episode. Mills, I'm taking off my jacket for this deal.

That's how good this deal is. Things are getting spicy. Things are getting spicy. By the way, I've upgraded my camera again. Dude, I feel like every three episodes you get a new camera. What has happened? No, no. The camera's cool.

actually what I have created this time was you put these little light boxes over the top of your LED panels and it diffuses the light to make it softer, which I've heard makes you look hotter. So we'll see. I'm a complete, I'm a complete bomb using my MacBook Air built-in camera. Hence, hence why you're swinging for the fences in the big leagues and I'm just down here trying to get my internet to work before we log on. You have to go kick the hamster and tell them to get moving so you can do it. All right. So I got sent this deal from like three different people. So that means it's definitely not trading for a reasonable price. So let's talk about it. Let me read it to you because I just sprung it on you. And I didn't even ask you if you wanted to do it. So thank you for being a friend. I love it already. So this one's off of Biz Buy Sell or BuySell. ByBissel. By the way, I will get it right when they agree to sponsor us. We need you guys. Please help the cause. But anyway, Biz Buy Sell has this one. And I think it's listed by Robert. Hirsch. And what it is, it's a water drinking delivery service located in Midland County, Texas,

which is out in the oil fields in West Texas. They do $3 million a year in seller earnings, and it is a Texas state preferred vendor. For those of you not on YouTube and not watching along, it has a picture of a water truck driving around out in the middle of the oil fields slash wind fields that are all West Texas. So basically Midland, if you go like where St. Antonio Austin are you drive like six hours to the west. Before you get to El Paso, you go through Midland. And it is classic, you know, oil field, all that kind of stuff is out there. So, yeah, typical typical stuff here by Mr. Hirsch, the broker. So they are asking $18 million for this business. It cash flows $3 million a year. They do $6.5 million in revenue, three million in

profits, and they have $5 million in furniture fixtures and equipment. And it was established in 1997. So business subscription, this company has provided state licensed potable water to residential commercial customers throughout West Texas for 25 years. They have built a reputation as a reliable source of high-quality potable drinking water and processed reverse osmosis drinking water, providing unbeatable customer service 24-7, 365 days a year in Texas. Deal highlights supply demand risk. There is a low risk to the business model since quality, portable water, potable water is scarce in West Texas. And I'll pause there.

If you don't know what potable means, it means it's drinkable, like, you can, like, consume it. Non-potable water means don't drink this. There is no risk from supply chain disruptions as the redundant inventory sources are owned by the company and not from a third-party seller. Growth. There is an opportunity to acquire even more land 5.4 additional acres, which would allow for two more water wells. This will result in another 230 gallons of potable water production per day.

The company has never invested in sales or marketing and believes the application of marketing expertise could row the company exponentially located in Midland, Texas. They have a teaser here, which is on the listing. So I will pull this up and I will share this tab instead. And it is listed by Freedom Factory Presents. What do you think that means? Is that the name of the broker? Yeah, yeah. That's that Robert Hirsch guy. I just Google them, Freedom Factory. It's like freeing fellow entrepreneurs. Oh, that is adorable. Oh, that's so cute. I love that brain. We were just talking about how to brand our podcast. And I was like, well, that we call ourselves Freedom Factory acquisitions

on all of us. They could go great. Anyway, so these guys have 600 plus total customers, $5 million estimated value of equipment and assets. A lot of what we just saw is on this page here. And you can contact this guy, Britt, at Freedom Factory, who I guess works for Robert Hirsch. I guess I'm confused.

Yeah, yeah, there's two guys on their website, Robert Hirsch and another person I think named Britt. Ah, got it. Okay. Well, like some of these brokerages, you see, there's one guy whose job is to go find the sellers, and then there's another guy who manages the buyers. So that may be what Brit does. So looking here at earnings, they do have this over the trailing 12 months and whatnot. The business has been very steady. They produce 141,000 gallons of water per day, 600 total customers. And they average, let's see, 2019 was a little over 2 million. Again, a little over 2 million in 2020 in terms of earnings, a little higher. 2021, a bit higher, 2022, and then they're doing really well this year. No pun intended to get over 3 million sellers discretionary earnings. So what do you think? You're ready to move out to Midland and run a water thing? This is a cool and interesting business. I mean, they are pulling water out of the ground. So they're actually like doing something very tangible, which I like. It sounds like the land is really important.

I don't, it has to be included. They talk about the ability to grow by buying another five acres and, you know, sounds like, you know, more than doubling their capacity. I wonder, though, you know, is there, is there a specific customer for this? They talk about, you know, being like qualified with the state of Texas and things like that. I'm just wondering, like, these, the truck that they send a picture of, you know, on Biz by Sell is like an oil tanker is what it looks like. So you're talking about, you know, thousands of gallons of water.

Are, you know, are they selling to municipalities or are they selling like to grocery stores would be a big question? I have like, who at the end of the day is their customer? Yeah. So I think, and if I could jump in there, I think a lot of who they're selling to are what are called man camps. Are you familiar with that idea? Yep.

Yep. Yeah, so for those of you listening, like a man camp is, let's say you're out drilling wells, right, in West Texas where this is a big oil, this is oil country, right? A lot of your oil production in the U.S. is coming from this part of Texas. It's the part between Dallas and like Amarillo and El Paso, like there's a triangle there of that stuff, all kind of west of Austin and San Antonio. And so like you'll have these people that go out and work in the oil fields. And they, because it's so far and not in the middle of nowhere, they will go stay in. in what are called man camps, which are oftentimes portable buildings or they might be temporary, like whatever. And those will be temporary housing for people. And you'll see people out there just living in the middle of nowhere. And my suspicion is a lot of what's going on here is this portable water is getting delivered to those sort of things to where you're not there for long enough to justify like drilling

a well and putting in permanent water service. So you're hiring somebody like this to come deliver into your tank and refill it for showers and all that kind of stuff. So I think that's your primary customer. I don't think you're serving people that are like near in and Midland, Odessa, which is the other kind of twin sister town to Midland. Like those people are on municipal water. I think this is primarily targeting folks that are out in the oil field somewhere

or out in the wind farm fields. Mm-hmm. I like that. It also, you know, it's a double-edged sword because I bet you have some, you know, customer concentration as a result of that. you know, there's not, there's not, you know, it's not like you're selling, you know, individual services to homeowners, which is nice for your average, you know, transaction size and the volume of revenue. But also, I don't think that there's, you know, they don't have thousands

of customers. They probably don't even have hundreds of customers. They probably have dozens. Yeah. To be, you know, to be this size. So I, that's just a risk I would want to know about going in. Also, my favorite and least favorite thing about businesses like this is this is an asset-intensive business. They have a fleet of trucks. They have wells. They have all kinds of equipment. They say it's about $5 million worth of stuff. The SDE numbers or the EBITDA numbers that get presented on businesses like this usually grossly, you know, overlook the fact that there is maintenance CAPEX required to continue to operate this business, not just growth CAPEX.

And so usually in looking at a business like this, what you want to do, and most sellers are not thinking about it this way is you say, hey, give me a breakdown. Like an investment banker would present it this way up market, but give me a breakdown of you've spent a million bucks a year, or maybe in this case, it's $750,000 a year. What's the delineation between just keeping your fleet of trucks going versus growth-related CAPEX adding, right, new trucks, adding new pieces of equipment? because the SDE number, the EBITDA number is not real earnings. At the end of the day, there's there's CAPEX that has to be spent that you will have to spend as the new, you know, owner of this business that you will not have available to, you know, make debt service payments. And so the SDE number and the multiple that they're, you know, trying to get at six times is is going to be probably very, very far-fetched. It just won't pencil. The deal won't work once you get down to the real cash flow.

My buddy who sent me this, I said, what do you think? And he said, I think this deal would probably turn out to be a good deal at around 15. And I think it won't work otherwise. So I was like, oh, that's interesting. So this is, I mean, this is one of the things that's super funny when you talk to people who look at businesses all the time to acquire them. Like, they get to a point just like kind of the real estate guys to you, where like, you can show them like the rent role. And by the way, I'm with, I'm this way with software businesses.

If you show me a software business and you show me like the, the trailing three years revenue, the gross margin, what their employee count looks like. And then what's the other thing? Okay, yeah, you just show me those three things. And like, like, I can just be like, yep, like, I think if you want to get this rate of return of pencils out to this. And like invariably, like, it's just like it spits out the bottom. So it's interesting when you see people that are looking at Main Street businesses all the time or they know they've looked at 100 HVAC businesses. They could just tell you. Like they're, they don't need to do a full model anymore because they could just be like,

okay, here's the rules of thumb on that. You need to do this, this and this. And here's how it's going to work. So anyway, that's that was just, I don't know if that was even helpful to anyone. But it's something you get when you look at a lot of deals. Yeah. If you deconstruct things enough times and then you put them back together, you kind of notice those patterns and you definitely can figure out some pattern matching.

The other, the other issue with this is, that, you know, this, anything oil field services related is boom and bust, you know, especially if it is servicing the oil field service companies. So, you know, pipelines are pretty steady. Pipeline maintenance is steady. But if you're doing anything that is kind of servicing the servicers, right, like port-a-jons for these guys or renting them trailers or, you know, trenching or heavy site work or whatever it may be, If you look at those businesses over broad cycles, they are absolutely boom and bust. And so that is not a great scenario for using debt as a part of the transaction. And this type of deal, this size deal, unless your family office, there's no real way to do it without debt. You could grow this business, you know, probably with a modest amount of debt.

But it creates a very, very risky scenario for you as the buyer buying this thing, modeling it off of steady and predictable cash flow when the revenue and the cash flow, you know, by extension are not going to be that way. It's, it's, it's just flagrant in oil field services. People make great money. It's just usually the guys who are, you know, building them make great money, not necessarily the people who are buying them and inheriting a business with them. Yeah, 100%.

My buddy, my buddy sold an oil field services company out in this same area. And, you know, they sold it just top dollar. There's these families that have built these businesses. And then, like, it's some business. Like, you rent equipment or you deliver water or stuff like that. And invariably, like, they wait until the oil price gets really high. And it's been high and growing up for some period of time. And then their business looks freaking amazing.

And then you know what happens? Like, some private equity group comes in. And in the case of my buddy, like, they sold to somebody out of Dallas. And, like, they lost their butts. Like, those PE guys lost their butts. So you hear about all these PE stories where they buy some company for 20 million and they sell it for 200 million and the partners make a lot of money. For every one of those, there are definitely a handful where like the PE guys got their ass handed to them. And I think, I don't know if you've heard this statistic before, but I heard it yesterday talking to a buddy that 20% of PE deals lose money.

So I don't know if you've heard that statistic or not, but that was something somebody told to me and I was like, whoa. Like so much for being masters of the universe. Yeah, yeah. I mean, I've seen stats that are higher than that, you know, because it's, you kind of have this category of like lose money, which usually it's lose big. You have a category that is, you know, maybe break even or very low single digit returns, which is not, you know, you can't go raise the next fund off of single digit returns. And then you have, you know, a small subset that, you know, are in the teens. But then, you know, you, you hit a couple. It's just like venture bets, right? Where you make a hundred, you know, you make a hundred investments. And very, very few of them end up creating most of the, you know, most of the contribution to your return. And I think, I think that's definitely the case with most private equity because you're magnifying the returns with the use of debt. Yeah. Well, I think that's something important for people to, think about. Like there's, we talk a lot about like the 80, 20 rule. Most people are really familiar with that. One that people don't really talk about enough is power law returns, which is what

you're talking about, right? It's like if you have a portfolio of 100 things, like three of them are going to generate 99% of the return, right? And that's this power law idea that shows up a lot more than what people think, right? And it shows up in our day-to-day lives. When you look back at your day-to-day life as well, you're like, you could probably pick the three or four decisions that really made a difference in everything that you did, and everything else was just noise, right? Like, which school did you choose to go to? Who did you decide to marry? Like, what business did you decide to get into? Did you decide to sell or keep? Like, did you get nerdy and go all in on Bitcoin early? Like, those are like, when you look back on your life, you're like, oh, yeah, like,

only 10 of these decisions really mattered. The rest of them, you know, whatever. Now you're like, okay, well, that's cool. Like, 10 decisions really matter. So like I don't have to take these decision making as seriously, right? Well, the problem is you don't know which of those 10 decisions are going to be really that important until 10 years later. We're like, oh, yeah, like asking that one lady out on a date was really important because she turned out to be like an amazing spouse. So, anyhow, that's all I know.

That's all I know about that topic. Well, I mean, it's it actually rings really true for small business buying because a lot of our listeners are in the category of, you know, buying and operating. or kind of searching and looking for an owner-operator type situation. The benefit that private equity has is that they get non-recourse debt and they don't lose their jobs and their families still eat, even if, you know, two out of the 10 or four out of the 10 deals go belly up. The types of people who are buying this business, right, they're all in on this.

And if it goes belly up, then they have recourse debt, you know, they're, you know, their life is completely upended financially and their family's lives are completely upended financially, probably in a way that is really, really hard to come back from. So since you're saying that whoever owns is going to lose their ass, I did get the NDA on this one. So, yeah, me. Actually, I haven't been out to Midland in like 15 years. So I'll see if I have to go out there.

I honestly, I bet that the seller of this business is a, amazing. I bet that they're like the kind of person you want to hang out with. They're total salt of the earth, like amazing, just grit and hustle. And like you, you know, you really enjoy them and you want to have a beer with them after the site visit and just like hear stories about their life. Like they're probably just amazing people. What's, and have you ever dealt with like people who have made their money in oil like as investors and stuff? Like, they're amazing. Like, they're just the best because just wild. Yeah. you know, I mean, I, I've seen situations where, like, the oil field guys are like, well,

you know, we lost some money on that one. Let's get back up there and drag you. Take another swing at the plate because that's how they've learned. Like, that's, it's a hits business. And you look at people who have made their money through like, you know, making sure every T is crossed and every eye is dotted. And they're like, oh, man, like, four percent loss, unacceptable. You know, just like total, total different attitude. And also how they make decisions is radically different, right? these guys, the oil guys are just so interested in like, where's the hole being drilled? That's what they care about, right? And then sometimes you hit and sometimes you don't.

And like, it just creates this totally different ethos. But also, like, if you deal with people whose parents were, you know, wildcatter types are in this boom and bust cycle, they'll tell you about growing up where like one year dad makes $5 million. Next year, dad's bankrupt. And like, they'll be like, they have it three times in my childhood. And like, how do you grow up and react to that as an adult when that was your teenage years where you're like, well, it's either feast or famous. So you might as well party it up right now.

One interesting thing about this type of business is it's like a, it's a very land dependent business. The specific geographic location of this, it's like a retail store, but it's only maximized because there's permitting that has to happen for, you know, for wells or for cemeteries or for. for mining operations. And those businesses are really cool because they usually have, like, for example, in mining, they usually look at it and they go, we have, you know, X amount of tons that we can pull out per day. And we have, you know, this depth that we can mine to and this many acres. And so we have like 47 years worth of inventory of gravel or what, you know, whatever it might be.

I had a client in a past life who was in the funeral home and cemetery business. And it was this thing where they always want to. wanted to expand and make the cemetery bigger because it was kind of like, you know, a smaller town and it was a community and it was like a big marquee thing for them to do. But the irony was they had like 97 years worth of inventory at selling grave plots, you know, just like it. And that's, that's a cool thing about that business is you know how many people are going to die in your town, you know, statistically like to a very, very close average. And so it's like, look, guys, you have like four generations worth of don't go spend

a several million dollars expanding the cemetery. But it's like this, you know, like they know, here's so many gallons we can pull out of the ground. I don't know how to really underwrite the risk of like, do the wells run dry? You know, do the water, does the water table change? What if it gets contaminated? Like, you'd have

some catastrophic risk that I really don't think you could mitigate that well. But these land dependent businesses are fascinating because like it, you're literally tied to that piece of dirt and you can't do anything about it. So two things.

Number one, we should definitely do a cemetery someday. They're fascinating. Like I've heard stories here in San Antonio, they have a fascinating situation where all the cemeteries are, if you're Catholic, the very popular ones are all filled up. And they're all controlled by the Catholic Church. So it's like a huge business moneymaker for the Catholic Church where they have like these sales teams. And there's like bidding wars for like premier plots to get into.

the right area. I don't know if that's still going on. I heard about all this like 10 years ago, but like, okay, this corner of the plot is freeing up. Like, we're going to buy this, you know, we're going to sell this to so and so and our family's going to get this. And like, people spending hundreds of thousands of dollars to like lock up a very premier prestigious plot. Now, has that changed in the past 10 years as kind of, you know, there's a lot less, you know, interest in religion than there used to be. I don't know. But like super fascinating. We definitely got to have a have a cemetery at some point. Oh, and it's, we, we, we, we really do because the role of cremations, it's the biggest topic in that industry because

cremations have terrible margins and you don't sell ground plots. You can sell crypt spaces and stuff like that in vaults. But it like different parts of the country, you know, because of religious heritage and things like that are like much more open to cremation and parts of the south or not. And so like if you look at a cemetery in the southeast versus like a cemetery in California, they're drastically different, almost business models and drastically different return profiles. We need to, if you're a listener and you come across one, send it our way, send maybe two our way so we can compare them. Super good.

Okay. So, like, I want to talk about this deal somewhere because, like, literally, like, I'm going to look at the SIM. I haven't signed an NDAA at and I'm going to look at it. You know, stuff I'm definitely going to be interested in is the first thing you said, which was like, okay, how is cash flow the same as EBDA in this business, right? Like, are you telling me you're not financing any of these trucks that you own? You're telling me you have no CAPEX in terms of replacement.

You're telling me you're not buying new trucks. Like, you're telling me you're not paying to repair them. Like, I need to understand how that's working. So that's something definitely interesting. Number two, I want to understand who the customer base is. Like, if we're going to pay five or six times free cash flow, like how durable is that customer base? And then the corollary of that is how hard is it for somebody to come in and compete with me?

And that may be tied to where I'm located geographically. It may be tied to some long-term contracts that I may or may not have. It may be tied to some cornered resource I have with this land. It's interesting the way they talk about the land. It makes me wonder, is there some special aspect of where they're located that makes this a very good place to get water? At least here in San Antonio, we have a big aquifer and you just go out and you drill a well. And actually, there's an interesting thing here in San Antonio. You're not allowed to have a well if you live in the city of San Antonio, but some of the enclave,

the little towns that are inside of San Antonio, they allow you to have a well. So you'll go down the street and you'll see this $2 million house in the middle of a residential neighborhood, and it's all in well water because they've decided they want to do that. It's just totally fast. Anyway, I totally nerd out about that. So yeah, I think that would be the last. thing I want to understand is like what's so special about this supply? Why do they talk about it this way? It just makes me wonder if there's something going on with the dynamic here that I

just don't understand. But those are all, does feel like all good questions to be asking for a business that's steady, eddy and like you need water. Like there's, demand's not going anywhere. And it's only getting more so in terms of what's happening here. But it can also, it can also change, you know, outside of your control, you know, if, if like you have, you know, some terrible, you know, contamination of, you know, of the well, of, you know, of the water table that you're in. There's this, there's this place in South Carolina called Healing Springs. It's in Blacksville. And it's famous because this guy deeded the land to Almighty God. I don't know exactly how this works from a legal standpoint. But if you Google Healing Springs, South Carolina, it pops up. And it's

like deeded to Almighty God. I'm not, I'm not joking. And people just go. It's free. And people go and they fill up jugs of water and stuff like that. And you know, you think water right now is a plentiful resource, but there is this kind of interesting, you know, very, very, very long thesis where people, you know, talk about water scarcity and, you know, this business probably does have a fair amount of demand for the long term, but I would be worried like what you can't control the water that is coming out of the ground, you know. And so if you have to move somewhere, how do you underwrite, you know,

drilling a new well and how that affects the business? totally cool yeah i'd be definitely be interested in how that what the situation is there i think you know you would definitely go through a process where you would hire an engineer you know geologists to come in and give you a report on the durability do water quality tests all that kind of stuff through through the whole process have you speaking of water and water weirdness have you heard about this kind of california cult of people that um have decided they're going to only drink uh fresh water like from the mountains like like they so i'd I don't know. It's kind of weird.

But it's a very California thing where it's like, no, do I'm only going to be, you know, ovo lacto, you know, veganarian, right? It's like there's these like, I think they're calling themselves like organic water drinkers. Like they refuse to drink treated water. And it's just like, they only get it from these special springs and places up in the mountains of the foothills of California. Because, you know, if it has chlorine in it, it's clearly designed to control your brain. Well, come visit, Michael, and we'll go down to Healing Springs.

I definitely go to Healing Springs. I ain't drinking no random water from some crazy person who deeded it to God. I'm going to drink. I'm drinking the stuff that's totally fine. Give me a break. The other crazy thing about getting this water from the ground is out this way, there's actually an area called Chinati Hot Springs. Have you ever heard of this place?

So it's down. So if you go west towards from San Antonio, El Paso, about five hours west on the interstate, you can take a left and go towards Big Bend, which is huge, but there's nothing out there. And one of the places there is this place called Shinati Hot Springs. And I went out there once. By the way, I think it's totally haunted because I spent the whole weekend terrified in my room. But that's not the point of the story. The point of the story is I went there and I felt like so calm, like super calm. And the last day I'm there, like I'm talking to the owner and all the water's coming out of a hot springs. And I'm like, man, like the water, I just feel so calm here.

It happened like a day after I got here. He's like, oh, yeah, the water has a really high lithium content. So the same thing they give, like, manic depressives to, like, moderate their mood is in the water out there. And I was like, this is great. This is the best. So super cool. All right.

Well, if I do something on this deal, I'll let you know, typical girdling thing. We'll probably look at it when we won't do anything because it just go to Midland all time. Doesn't sound that much fun. It just doesn't seem like a good life. Yeah. Though I hear it's nice, whatever. George Bush is from there.

So whatever. Okay. Any other clothing thoughts on this one? Otherwise, I think we'll put her to bed. No, it's unique. I like it. I'm glad you brought it. Super cool.

Okay. And for our listeners, like one of the things I want to do Mills in 2023 is it feels like we've done like a lot of the small business types. Like I really would like to do some more interesting businesses, especially ones that have some more nuance. So if you are somebody that is seeing some teasers for businesses that are maybe a little bit bigger, even if they're garbage, $3, $5 million like SDE or EBITA style businesses or even bigger.

Like we did the chain of aquarium centers. Like that was so interesting. Like I think we could really talk through some stuff and there's some cool nuances, especially when businesses get a little bit bigger. So if you're a listener and you're seeing those type of deals, which don't typically show up on biz by sell or these other brokerage sites, please send them to us. We're available on Twitter or you can reply to our newsletter and send those to us.

We'd love to talk through them. All right, everybody. Catch you later.