Acquisitions Anonymous - #1 for business buying, selling and operating - Amazon FBA Business for Sale: Supplements Generating $1M Annual Profit

Episode Date: November 19, 2024

In Episode 348 of Acquisitions Anonymous, we dive into a fascinating e-commerce deal: an Amazon FBA health and wellness supplements business. This business generates over $1M in annual EBITDA while operating just 15 hours a week. With its concentrated revenue from three SKUs and heavy reliance on Amazon as a channel, we explore the risks and rewards of acquiring such a focused operation.🔑 Key Highlights:- Amazon Dependency: 96% of sales from Amazon, with one SKU accounting for 80% of revenue.- Growth Opportunities: Potential to expand into retail (GNC interest) and other Amazon markets.- Seller Financing: Why this business doesn’t qualify for SBA financing and what that means for buyers.💡 Takeaways:- The challenge of moving a brand off Amazon.- The risks of concentration in SKUs and sales channels.- How buyers can structure deals to mitigate these risks.👨‍💻 Sponsors:Acquisition Lab: Created by Walker Deibel, author of Buy Then Build, Acquisition Lab is the leading accelerator for serious buyers looking to acquire a business. Learn more at AcquisitionLab.com or email Chelsea Wood directly at [e-mail] Conference 2025: The premier event for learning how to manage multiple businesses. Join us in Utah next spring at an all-inclusive mountain resort. Visit HoldCoConference.com.Subscribe 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]

For me, that is the thing that scares me the most, is that they are so concentrated in this one hero skew that any, I mean, Amazon is just such a roller coaster. You're paying three to four years of profit. But speaking positively about this deal, like, it is super cool that somebody in 2016 decided to start a supplement brand and created, if this business sells four million dollars worth of value for them in eight years working 15 hours a week. Yeah. And I'm always worried when it says the seller is going to go. do another business. You know, something's much more attractive to them than this. And it makes me wonder if they kind of know this is maybe on the decline or this is getting a lot harder or whatever it is. And what is the other business? Is it e-commerce? Is it related to this? You know, what is your non-compete

going to look like? Hello, another episode of Acquisitions Anonymous. Hello, another episode of Acquisitions Anonymous. We don't have 100% here. Hello, ladies and gentlemen, boys and girls. Welcome back to another episode of Acquisitions Anonymous. I am your host, Bill Dallisandro, and I am here this week with Michael and Heather, and we are doing an e-com deal. We're doing a supplements business on Amazon FBA. So this is kind of the classic four-hour work week.

This guy says he works 15 hours a week. From home, just him, a couple contractors. This business is making over a million dollars of EBITDA a year, almost entirely through Amazon. Three skews make up 96% of the revenue. This is kind of your classic internet money machine business represented by, quiet light. So we had a good episode today. I hope you guys enjoy this episode of Acquisitions Anonymous. This episode of Acquisitions Anonymous is sponsored by Acquisition Lab and their team. They've been longtime supporters of the pod and they provide a really great service for people who are looking to acquire

a business. So it's created by Walker Diable, who's become a friend, the author of Buy, then Build, how to outsmart the startup game. So Acquisition Lab is an accelerator with a highly vetted, cohort-based educational and support community for people who are serious about buying a business. So a lot of our listeners like you, you tune in every week to our deal reviews, you want to get in on buying a business. You know, you're on this podcast because you're trying to learn how to buy a business. But if you're not quite sure where to start, Acquisition Lab is a great place to start. So they exist to help people buy a business and to navigate all those complexities of the process, everything you hear us talk about on the show. They provide a proven framework, tools and resources

that support you all the way from search to close. They do it. There's a whole bunch of education material and support. So if you're serious about buying a business, check out Acquisitionlab.com or you can actually email the program director Chelsea Wood directly. Her email is Chelsea at buy then build.com. Good morning, Heather, and happy Friday. Happy Friday.

How are you, Bill? I'm hanging in. I'm a little bit sick. So apologies to the listeners. If I sound a little stuffed up, I'm feeling all right, though. So we're going to let it rip. All right. Let's go.

What do we have today? Before I talk about what we have today, you have to go, if you're listening, you have to go on YouTube so you can see Heather's awesome new camera and background. She even had a carpenter come in and build shelving. She's finally 300 and some episodes in, has finally caught the bug and gone all in. It looks really good. It took me a little while. It did take me a little while.

Like you said earlier, I came from behind for the win. You know, I was in last place for a long time there. So I'm super excited about my new studio. It's really nice. Are you on teleprompter right now also? No, I'm having trouble getting all of that working. So I do have all that equipment, but I'm not on it yet. That's been another frustration for me.

All right. The pod is going pro. We're going to have all the hosts with great camera and mic setups, which means if you are listening to this on audio, remember, you can check us out on YouTube. If you want to see our faces, you want to read the deal along with us. And the editors sometimes cut in some funny stuff. So if you haven't checked us out on YouTube, go check us out on YouTube. But today, we have an e-com deal from our friends at Quietlight brokerage,

who I've been working with for a long time. And I think they are one of the higher-quality brokerages in the e-commerce space. I've not ever seen them representing anything that is kind of scammy or where the seller's trying to pull one over on the buyer, the level of integrity of Quietlight is pretty high. So that's why I like doing their deals. So this one is a growing Amazon FBA health and wellness supplement company, seller financing, and 1.1, almost 1.2 of SDE on 5.25 of revenue.

And they are asking $4 million plus inventory, which is a 3.4-4x multiple. So I'll read it to you and then Heather, I'll see what you think. All right. Founded in 2016, this company has established itself as a trusted brand in the health and wellness space. With high quality products, excellent customer reviews, and a loyal customer base, the company has built a solid foundation for future of growth. For a buyer seeking a turnkey operation with multiple levers for value creation, this is a rare opportunity to acquire a growing, profitable, well-established brand with tremendous growth potential. The company has identified numerous growth opportunities that have not yet been fully exploited, including adding skews that are currently in the pipeline, expanding to other Amazon markets

outside of Amazon U.S., which Amazon has reached out and encouraged the company to do, and expanding into retail from existing interested companies like GNC. The company has strong profit margins, 20% net, a solid white hat brand positioning on Amazon with 12,000 reviews, low overhead, a U.S.-based supply chain, and room for scalability. This reputable brand has numerous products that, rank on the first page of Amazon for top keywords. There is low inventory management with only 10 skews and the top skew represents about 80% of sales. Okay. And the top three skews represent 96% of sales. Primarily an Amazon heavy sales channel typically contributing 96% of sales.

The next biggest channel, which is Shopify, typically sees 40 to 45% of those sales through subscriptions displaying the effectiveness of the product line. So it's 96% Amazon, 4%. percent Shopify and of the 4 percent, almost 2 percent is subscribe and safe. It's currently functioning as an under 15 hours per week business for the owner, and he's looking to sell so he can continue to focus his time and efforts on another business venture. The business does not qualify for SBA financing, Heather, but the owner is open to seller financing for the details provided. Bires will need at least $3.5 million in cash for this acquisition, and again, the asking

price is $4 million plus inventory. What chopped out of you, Heather? Well, I'm first of all, as a lender, happy that they saved us all a lot of time by saying it's not going to get an SBA loan. So people aren't chasing that down. One skew is really this business. And there's only 10 altogether. So this is kind of one product. It's on Amazon primarily.

I mean, I think those are the two reasons why it can't get an SBA loan. That level of risk for a lender is. is a little too high. You know, and I think the supplement space we've talked about it before is pretty competitive. So I'd really be interested to know what this one skew is and how unique it is. Yeah. So you think this wouldn't get an SBA loan anyway because of the product. You think this wouldn't get an SBA loan anyway because of the product concentration and the channel concentration.

But are there other reasons, too, why a business cannot be SBA eligible, right? Like, what are some of the other reasons that we might find here? Oh, there's all kinds of other reasons. I mean, now there's eligibility and then there's credit guidelines. And I think people get them mixed up. Like the channel concentration and the product concentration here, those are just credit guidelines. The SBA rules don't prevent you from doing that. But you're going to find that every bank out there that's lending in this space, their credit guidelines are going to stand in the way of that. So that's what you really have to understand is, yes, there's SBA rules. Almost everything is eligible, quite honestly. You know, we're allowed to have rollover equity. We're allowed to do a lot of things now. But it really comes down to credit guidelines. What do the banks like and dislike?

And where do they see the hot button risks? They like diversity. They like diversity of channel. They like diversity of product. They don't like concentrations of any kind. Yeah. So there's eligibility, but then you've got to get over the credit hurdle at the individual bank. Right.

And I've heard that sometimes businesses are. not eligible if they're being carved out of another business, if they don't have separate tax returns, right? It's not really an eligibility issue. Technically, the rules doesn't say you can't do that, but there comes a difficulty if you don't have standalone tax returns. If the business you're trying to buy doesn't have three years of its own tax return all by itself, if it's actually part of a private equity firm as an example, and it's being reported under a tax return that that reports, you know, seven or eight different businesses, it's not going to have its own tax return. And while you could use a quality of earnings to kind of historically, you know, kind of verify that that company's P&L, the banks look at the guidelines from SBA and they feel like they have to have the tax return.

They don't. The rules don't actually say that, but they don't feel comfortable when they don't have tax returns. Okay. So this, I mean, Quilay knows what they're doing. So when they write, this business does not qualify for SBA financing, I got in the sense they're probably talking about something eligibility rather than credit committee. Maybe it is. Yeah. I don't see where they're saying what it would be. So you're right. Maybe they've known something else.

If this were a sexual health supplement or something, would that disqualify it? No, that would be okay. I think a supplement like that would be fine. Yeah, I would be curious. I mean, like you said, Quietlight does a good job. So maybe they've actually talked to their lenders and know that, you know, this is, or they've been down this path before with businesses with similar characteristics. And they know that it's not worth trying to get that, you know, a sell a deal that's dependent

on the financing, which is smart because too many brokers list businesses that no bank is going to touch. And they, they waste a lot of their own time and their clients time finding that out. Yep. And I appreciate also that they have gone ahead and prep. seller for that. So the seller is proactively offering seller financing in place of SBA financing. Right. If I was a broker, this is what I would do. I would not take listings. I would make sure I know what is financeable and what is not. And I wouldn't take the listing unless the, you know,

on a non-SBA financeable situation, unless the seller was willing to do something like this. Yeah. That being said, though, the seller here is not being nearly so generous as the SBA would be because the broker says that you will need at least three and a half million dollars of cash for this acquisition and the asking price is $4 million plus inventory. That's not much. It's not much financing. Yeah, we're not talking about 80% loan to value like SBA will give you. But it's a little bit of something.

So Michael, welcome to the show. Thank you for joining us a little bit late. We're glad to have you. I never miss a supplement episode. Well, we left it on the screen. So Michael joined a couple minutes ago. So hopefully you've read and caught up. So it's an Amazon supplements business, which I know, Michael, you love so much this business.

Well, I don't know what I love more, being on Amazon or being in the supplement business, maybe both. Being on Amazon, being in the supplement business, and having only one skew account for 80% of your sales. How about that? Holy cow. Yeah, that, so for me, that is the thing that scares me the most, is that they are so concentrated in this one hero skew that any, I mean, Amazon is just such a roller coaster.

You know, you're going to, you're paying three to four years. years of profit, right, to buy this one skew. So you're functionally betting that the Amazon algorithm and the competitive landscape are frozen, solid, and unchanging for three to four years, or that you, buyer, are savvy enough and sharp enough at Amazon to ride the wave, to kind of surf the algorithm to pivot and twist and turn as things. change on Amazon, which there are plenty of savvy buyers out there that understand Amazon and can do that. But this right here is why so many people get smoked buying Amazon businesses because they

buy something like this and they don't anticipate that, you know, Amazon is shifting sands. And you can't just come into this and not know what you're doing because the world is going to be very different a year from now or two years from now. And if you don't know what you're doing, that, you know, your skews are going to decline. And when one of your whole business is one skew, it's very, very risky to come in and not know what you're doing. Yeah, absolutely. And some of the stuff I'm reading about there's been, you know, there's a lot of Twitter folks who are Amazon sellers. And they're reading the tea leaves of where Amazon's going to continue going, which is squeezing more and more sellers, growing their advertising business.

Like, like, and they're reading the tea leaves because Amazon executives are. putting in predictions about growing their margin, and they're like, well, I wonder where the margin's going to come from. And it's coming from the sellers, like people who run these Amazon businesses. So I don't know if you have a perspective on that bill, but it has me pretty pessimistic about Amazon as a channel for a lot of these folks. So, yes, Amazon, the way I've discussed with my board is they're always trying to pull a few more chips onto their side of the table, right? More and more margin.

Your margin is my opportunity, one of Jeff Bezos's most famous quotes. even to the point where Amazon is starting to realize that they can only tax their sellers so much before the sellers go out of business, right? Like you can only eat so much of the sellers P&L before there's nothing left. And that is why Amazon is so focused now I'm going direct to factory in China because then there's more margin for them to take, right? Because you cut out a middleman. So that is one thing I will say that this industry, other, there are certain types of spaces. on Amazon that are more protected from that, think things that are physically large and expensive to ship from China. Think things that are regulated, like health products, like FDA registered

products, like even some supplements, not all some. If I'm, you know, I'm trying to pick categories on Amazon where it's important that your product is made in the USA, either economically because it's expensive to ship or the customer demands it. So that's sort of the defense, against it. But yeah, if you're just basically flipping something from a factory on Alibaba, Amazon's coming for your margin. This is why lenders don't like to, most lenders, when they look at e-commerce, if it's primarily dependent on Amazon, they won't lend. That is a criteria across a lot of banks. I don't know if you guys cover this already, but speaking positively about this deal,

like, it is super cool that somebody in 2016 decided to start a supplement brand and created, if this business sells $4 million worth of value for them in eight years working 15 hours a week. Like, okay, there's, okay, even if it sells for half, like the person still created like a level of wealth that can last for generations in eight years of work 15 hours of week. Like, that's pretty cool. Bless America. Yeah. America. F yeah. Hey, Michael here, I want to let you know that I'm hosting a conference, first time I've ever done it. And it's called Holdco Conference 2025. If you want to learn how to manage multiple businesses, as it wants, how to incubate new companies, or how other whole co-owners and operators run their

fleet of companies, then should come to Utah next spring. We've got a ton of great speakers, including Walker Dibble, who wrote buy-then build and founded Acquisition Lab. Plus, we're hosting it at an all-inclusive mountain resort so you can hit the slopes at the end of the day. So please go to holdcoconference.com for your tickets and get 10% off with your discount AAPod. That's holdcoconference.com and use code AAPod for 10% off. Now, back to the show. This is the power of Amazon, right? Like, I feel like everybody shits on. on Amazon. But this is the, Amazon has made more millionaires than any business in the history in the world, right? This guy, assuming it's a guy, probably maybe a woman, this person

has built a functionally a one person business, maybe a couple contractors, one or two employees. They're making a million dollars a year, working 15 hours a week, right, selling a supplement that people want with 20% net margins. Over 12,000 people have left them a review. I assume most the reviews are good. These are the types of like one person businesses that Amazon enables. And is it harder today than it was in 2016 with this person started? Yes, absolutely. Is it still possible today? Also, absolutely. Yeah. Little riskier to buy with debt because you are building a house on someone else's platform. But you very much still a lot, a lot of gold in the hills in Amazon.

So just one question I have for reading the thing. And I'm sorry to be like the child who wanders into the theater in the middle of the movie and ask like what's the plot. So I totally. So cut me off if this, you've already covered this. But why do buyers need at least three and a half million in cash at closing? Did they tell us that? Not SBA eligible. And so that is all that the sellers won't to finance apparently.

Well, that sounds really great for them. Which is pretty funny, right? Like, that comment, Michael cracked me up because, like, yeah, that would sound really great for the seller. But like, you know, seller expectations crash into market realities pretty quick when you try to sell a business. And, I mean, I just, I don't know, I would not put down three and a half million dollars of equity with a million bucks of seller financing to buy a business like this that makes a million bucks a year through one skew on Amazon. Like that's not enough. No. That's the wrong ratio.

They at least got the seller on board with seller financing, but that is the wrong ratio of equity to debt in this situation. And seller risk. They should be taking more risk when they are selling something with a concentration like that. That's how I view it. There's just the risk share is tilted the wrong way. I mean, this is got to be like some version of like heavy earn out, you know, or a note or, you know, the seller here has got to share risk just because this is so concentrated. It would be very, very easy for you to buy this business. and end up immediately upside out on it, you know, within 12 months if something goes sideways in your outrhythm. Yeah. And I'm always worried when it says the seller is going to go do another business. You know, something's much more attractive to them than this. And it makes me wonder if they kind of know this is maybe on the decline or this is getting a lot harder or whatever it is.

And what is the other business? Is it e-commerce? Is it related to this? You know, what is your non-compete going to look like? It's podcasting. Yeah. Yeah. I think it's a lot of times like sellers want to de-risk, right?

Like maybe, you know, they've got another business in e-com, but they look at this one. They go, this is great. I'm making a million dollars a year. But like they see all the risks, just like we've talked about. And they go, I would like to diversify. You know, I would rather. But this is the one I choose to get rid of. Because it's probably the riskiest one, right?

It's like the one that keeps them up at night. And it doesn't mean it's not going great right now. But like, I'm not. I don't even mean to apply that it's already falling apart. Like everything would be crushing in this business, right? But you could still decide to sell it because you know that it's fragile. And then so what you do is you go, this is my fragile one. Let me try to sell it.

You get a broker. The broker tells you a market multiple. You put a market multiple on it. You know, and that's how it ends up right here on a website of a broker. But it is up to you, the buyer, right? Brokers are not going to diligence it and de-risk it for you. you, the buyer, have got to say, just because the seller wants me to step into this equity-heavy, you know, no risk-shared situation, that doesn't mean that I'm going to do it.

And we're going to have a negotiation about structure and price. And I think that's what searchers and first-time business buyers don't understand. They go, oh, the asking price is $4 million here. If I think that's wrong, I better just move on in the next deal. Like, no, everything is negotiable. This is just a starting place. Yeah. One question, and maybe you guys know this, like, with supplement businesses like this,

it amazes me how trusting consumers are to just buy random crap off the internet and put it in their body. Like, and I guess that also applies to our food supply and our medicine supply and water as well. Like, people just are like, yeah, that's fine. I'll put it in my body. But, you know, so A, like, is that right? Like, there's very little, like, testing or supervision of these unregulated supplements. and then B, is that something we have to worry about in the future, like coming down?

I know there's some people coming into the new administration and have some very strong ideas about what goes into people's bodies. So how do you guys think about those two things? So I'm interested. So to address your first concern, I would not buy anything made in China and put it in my body on Amazon. If it is made in the United States, though, there are in a U.S. facility, there are certainly regulations that the manufacturer is subject to, even stronger than the brands are subject to because the brands can be hard to chase down and police, but the manufacturers have big fixed facilities and our larger businesses and FDA comes and audits them and walks through. So the manufacturers are actually your consumer protection

much more than the brands, which is actually surprising. So I mean, I'm comfortable with United States made supplements. That being said, regularly people do audits of supplements and test them all and find out that the actives are all over the map or not. not present at all or, you know, the quality is varying for sure. As far as regulation, I don't know. It could be going forward a total free for all and deregulation and put anything you want in your body or could go the other way. It's really hard to tell as we sit here, you know, three days post-election. I would not be worried about the long-term viability of the supplements market in the United States, though. It's been large, durable and growing for a while.

Yeah, and to your point, Michael, I just saw on Twitter this morning a picture of an influencer who's very big on supplements, Brian Johnson, standing next to RFK Jr., the new health czar or whatever. And they're very big on supplements. So I would take that as a sign that, you know, we're going to see lots of supplements pushed. And, you know, and certain influencers do their own testing. And maybe people learn to trust certain influencers doing the testing for them. to tell them this particular brand is pure. But I think it's going to be an influencer, heavy, and probably supplement strong market, is my guess.

It was interesting when Brian Johnson, and this is the guy that, if you all don't follow him, is trying to live forever. So he's doing all this crazy stuff, everything from measuring certain genital organs performance every night to doing blood transfusions with his kid to try to live forever. But when I first saw him, I was like, I wonder how long until this guy

started selling supplements and it was like six months we were selling supplements it's just the siren call of high margin low efficacy and selling people magic beans is just like it's too it's maybe we should have an acquisition's amount of supplement line we talked about it with our deal wars uh episode so i mean we're we're almost there yeah we get we can have a supplement line and a line of worms also for your supplements made of worms. Worm supplements. So, I mean, I love the industry this is in. I think it's large, growing, and we'll continue to.

The thing that scares, I love the margins. I mean, I love, there's a lot to really like about it. The thing that is scary is that it's 96%. Top three skews, 96% of sales and also Amazon, 96% of revenue as well. Shopify is 4%. And they're heavy, subscribe and save. I mean, it's nice that they've got 40 to 45% of the 4% on subscribe and save, but it's just so early. And this is the part of the episode where I emphasize again that

one of the hardest tricks to land in all of consumer products is taking an Amazon-only brand and moving it outside of Amazon. It is so, so hard to do to create your own demand. People, you'll rank number one on Amazon forever and you feel like you have a brand, right, in quotes, but it turns out what you have is a search position, not a real brand. And it is a totally different skill set to build the awareness. So like on Amazon advertising is demand capture, right? Somebody types something, something supplement and then you just got to rank. You're capturing that demand. Outside of Amazon, it's demand creation. So you've got to interrupt somebody while they scroll their Facebook feed and convince them they need a hard supplement or whatever.

And making the content that does that is a specific skill. It is very hard. And it's the skill that most Amazon sellers don't have. So to take it off to Shopify and Facebook ads, you need to build a skill most Amazon sellers don't typically have. And then similarly, they also talk about expansion to retail here. They say GNC is interested in carrying the product. Great.

Retail also totally separate skill set than any Amazon. Amazon seller has. And just because GNC is interested doesn't mean they will. And just because they do, doesn't mean you'll make any money. It doesn't mean they won't return it all to you. Doesn't mean it'll sell through. So what they're proposing here is kind of the triple axle. Take this business that's 96% Amazon and take it elsewhere. You really can't take that as a given. Yeah. Well, and I think we've all watched the Athletic Greens story, right, in terms of them being all over every single podcast. every single person who has a newsletter and seeing how they've done this, right? They own their customer relationship.

And then they've gone even further, which is selling 90% gross margin stuff at $100 a month to people as a subscription. And like that to me is like, wow. But I think to your point, Bill, do you know? I mean, I heard they went through millions of dollars in CAQ to get to that kind of customer acquisition costs to get to that kind of stuff. And then they have the deals they have with influencers to recommend AG1 or 20, 30, 40, 50% of your monthly fee goes back to the person who referred you in. So every time you see one of those referral codes, like you're doing a big deal for that person who referred you.

Well, that's why the product's so expensive is they need margin for it. And, you know, I think this also, this prompts another small soapbox thing. Like looking at athletic greens and thinking, oh, look, like they did it so I can do it. Like, all of the couple success stories that you know are like, that's like looking at Tom Brady and being like, yeah, he could do it. I could do it. Like, athletic greens is like the outlier of outlier, like smash successes, incredibly brilliant people.

And by the way, also like they toiled in obscurity for years before it finally caught on as well. It's so easy to have this selection bias and to look and you see all the big success stories and you don't see the hundreds of thousands of people who've gotten run over. So just because athletic greens can do it doesn't necessarily mean you can do it. And that, but for everything, right? Yeah. For every category. Business is hard.

So what would it take to get you guys to buy this business? Almost a partnership with the seller. You know, them carrying a lot of debt or rolling over some equity, they're only spending 15 hours a week, okay, fine, spend five hours a week with me and still own part of it or carry most of the paper and transition it to me that way with a little bit of equity. Certainly not the ratio that they're suggesting here. Yeah, I go for, I go for something like, I'll buy the inventory and we will split profits 50-50 until you've received, you know, three million bucks. Yeah. Yeah. You know, or for four years, whatever comes first.

something like that because you can't just be in it together for 10 years or something of this thing tanks but like yeah i'll take the inventory off your hands you know that probably on a business like this probably a couple hundred grand maybe half a million bucks take the inventory off your hands and we'll split the profit every quarter we'll figure out what profit we did you know i'll write you a check we'll keep correct of cumulative distributions and when it hits three million bucks our arrangement is concluded i would i would structure a deal like that makes sense And I'll tell you what the seller will think about it. Thank you, but no, I'm going to want to see.

It's just, you know, it's funny. I haven't been as a seller trying to sign up for a structure like that, but at least I keep, I've never signed up for it. But at least I keep telling myself that when somebody does want to do it that way, I'll be open to it. So we'll see if that ever happens. But my luck in trying with these type of businesses that have some key supplier risk, some existential risk like their Amazon placement, like sometimes it's pretty tough to convince

a seller who has seen those things be there and consistent for eight years, that they're going to keep being consistent in the, not necessarily going to be consistent in the future. And it's like trying to tell somebody their baby isn't as pretty as they think. And yeah, it creates some unfortunate conversations. But that's where a good broker can really help you. Right. Right. Is to bridge that gap and a good broker.

And similarly, the good broker can say to you, hey, bye, buyer, you know, I got four other buyers willing to do an all-cash deal like you're off-market. You know, like good brokers aren't, they kind of play in the middle and they can tell the buyer when they're off market and they can tell the seller when they're off market. And that's the good brokers get deals closed that otherwise would not get closed. Bad brokers break up deals that otherwise would close. Yeah. And I think speaking of that, it would be really great to ask brokers of your listings, you know,

how many listings per year do you get and what percentage of them close? because I think that could be a good indicator of a good broker who's screening out the listings in the first place and is able to really have the hard conversations with their clients to get deals done. Yep, versus a broker who will take anything on. So I know there are not quite light. I know there are competitors quite like who will take almost anything on, try to sell it and go, oh, we got a two-year tail. It doesn't really cost us that much.

We put the offering memo together overseas anyway. You know, it's basically a free option. Like, we'll put the memo together, blast it out for a list. If someone buys it, great, we get a fee. If no one buys it, we'll sit on it for a two-year tail and maybe get a fee anyway. If someone else sells it, but we're not out too much. And they take like a sort of a venture portfolio approach to it, which I think is really gross and really, really hurts a lot of sellers. So the good brokers will not take listings on that they do not think will close.

Yep, exactly. All right. So I do, I want to like this one. If this had more skews and was a little bit more channel diverse, I would really like it. But those two things are scaring me away. Anything else to add before we wrap this one up? All right. Thank you for listening to Acquisitions Anonymous.

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