Acquisitions Anonymous - #1 for business buying, selling and operating - Buying a Butane Filling Business for $4.5 Million - Acquisitions Anonymous 313

Episode Date: July 9, 2024

Is buying a butane-filling business for $4.5 million a good investment? With $1 million in cash flow and $500,000 in real estate value, Michael, Bill, and Mills discussed the pros and cons, explored the key financials, and considered the potential risks and rewards of this deal. Tune in and enjoyThanks to this episode's sponsor:Acquisition Lab and their team have been longtime supporters of the pod.Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood, [e-mail] and mention us ;)Learn how to buy a business.If you are interested in buying a business but unsure how to start, you should check Michael's Buy a Business Course. 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]

How do I make sure I don't lose my money if I buy this business? And manufacturing is a scary thing, right? You have these high fixed costs. You have high repair costs. But I don't, I don't think it's, like, if you looked at the total butane market versus the total propane market, I think it's probably, you know, dwarfs it. You shrink this business. You shrink this business. So you got to be sure it's not going to grow up to shrink.

But man, if you can grow it, I think you can do so well with this. Hello, everyone. Welcome back to another episode of acquisitions. anonymous this is the internet's number one podcast on buying growing and operating small businesses today we have by my recollection one of the best deals I've ever seen on the pod I filled out the business broker form as soon as we stopped recording very interesting learning more this is a manufacturing company in North Carolina we think it is a butane filling facility very reasonable price comes with assets

SBA bankable as far as manufacturing goes relatively simple because it's filling. It's not, you know, CNC aircraft machining or something. So me, Michael, and Mills had a really good discussion about this one. I hope you enjoy this episode of Acquisitions Anonymous. This episode of Acquisitions Anonymous is sponsored by Acquisition Lab. 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 Dival, who's become a friend, the author of Buy, Then Build, How to Outsmart the Startup Game. So Acquisition Lab's 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 educational 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. All right. Team South Carolina coming in strong. I have relocated to Beaufort, South Carolina for the next week for this episode. So Mills and I are both Team South Carolina today.

It's always everybody versus Texas, though. That's right. Texas versus all y'all, as they say. It's not hard to win right now. Like I had my bikes on the back of my car, and I just walked outside for like three minutes, and it was just like sweat. So wherever you're living that isn't here is a good idea. I recommend it.

Or you just get close to the water like Bill did. Yeah. It's still 97. degrees here and humid, but there's the ocean, which is nice. Well, we may be team South Carolina today, but the deal is a North Carolina deal. So this is all Carolina's episode. Who's reading this one? Gurdley?

Me, me, me, me, me. All right. What we got? All right. So this is a biz by sell special, future sponsor of the podcast. So there's something interesting about this deal. Mills sitting around beforehand, and we can play a little game called What's Special About This Listing.

But let me read it for you, and then we can play the little game. So it is a manufacturer that is SBA 7A pre-approved doing consumer goods that includes real estate, and it's located in North Carolina, but it could be relocated. They have a picture of some sort of equipment. looking thing here. It looks like a canning operation of some sort. And the asking price for the business is $4.5 million. Cash flow is $900,000. Gross revenue is $3.6 million. Inventory is $1.1 million. Real estate is $1.2 million. FF&E is $207,000. So $4.5 million asking price makes just shy of a million dollars a year on gross revenue of about 3.6 million. They have real estate included of

$1.2 million. So the heading here is sunny southeastern U.S. is a great place to live and visit. Damn right. And visit according to Bill. There's some interesting YouTube videos titled, like, Why Does Nobody Live in the Southeast part of the United States? It's pretty interesting. It comes out of geography. Anyway, iconic made-es. United USA manufacturer located in the southeastern United States with a 150-year legacy, and has a pre-qualified lending packages by multiple SBA lenders with a sample supporting letter included within the listing package. 2023 revenue was $3.9 million.

$2023 STE was $900,000 adjusted, so I don't know what they adjusted, but they operate only Monday through Thursday for 10-hour days within a facility that is running at 33% capacity. There is tremendous upside for the right buyer with additional land, 10 acres, total and production space to consolidate operations from elsewhere and or to grow organically. And sunny southeastern U.S. is a great place to live with a reasonable cost of living and four distinct seasons. The seller is willing to stay on for a period of mutually agreed upon with the buyer to facilitate an orderly transition.

Inventory is included in asking price. The real estate is owned. It's a 28,000 square foot building with 22 employees. They give you the furniture fixtures and equipment. And then it talks here about all the different stuff that, is on the facility. And the owner gives you the seller terms that they are willing to do. They are willing to carry $450,000 at 8% interest over five years with a monthly payment of $9,124. And Bill, the seller is retiring and is willing to offer training to you for a grand total of not one,

not one and a half, not one and three quarters, but two weeks. They will hang around and make sure you know everything about this business. I mean, the guy's trying to retire. What can you say? He's ready to retire right now, right now, right now. Yep. And it is listed by very friendly looking Tony Corey of trans world business advisors of, I got to figure out where. But there's an issue with this listing. Do you guys want to figure out what the issue is? Is it that it's relocatable and it includes the real estate?

That's kind of an issue. But also, I have no clue what they do. Yeah. So I have a guess. I have a guess because Tony has provided us. this awesome picture, which if you're on YouTube, you can see, but if you're listening, I'll describe to you. It looks like a canning line, but if you zoom in, it looks like the cans coming off it are actually aerosol cans with the little tongue sticking up the top,

waiting for a sprayer piece of plastic to be put on top. So this looks like a WD40 can or an insecticide can, you know, something aerosolized and pressurized. So it seems like it's that kind of manufacturing facility. There's also a clue in the, that I think is actually the real tell. And it corroborates what you said, Bill. In the description of the facilities, they say manufacturing slash warehouse plus storage and butane buildings. Butane is like, it's lighter fluid.

It's like Zippo fuel. And if you look at what the butane bottles look like, it's exactly what. It's exactly what's in that picture. So what this is, Gurdley, you know about this, right? When you sell things that explode, you need to store them in a separate building from where the people are, right? Do tell us for safety. Well, Gertley sells a lot of fireworks. I would imagine there's some storage regulations around those.

Yep. Yeah, that's true. So, butane will make some fireworks if it exploded. So they have a separate butane building. Now, do we think that all they're doing is making, they're not making the equipment that bottles butane. They're maybe just bottling butane. I believe them to be bottling butane based on what you just flagmills. And what we don't know is whether they're doing it under their own brand or whether they're doing it for other brands.

What do you think about this 150 plus year legacy? Like, lady as heck, man. it's so ambiguous like well you know technically my granddad had this idea and his dad had the idea so it's a 150 year legacy like they haven't been operating for 150 years surely at 3.6 million in revenue are you sure i mean maybe i don't know i mean butane's been around a long time maybe maybe this is some brand of butane that has been around forever i i mean i love it that it's this old. I mean, that is, that is pretty lindy. Been around for, if it's truly been around for 150 years, they've got their own equipment

and they've just been cranking out a million bucks a year, you know, inflation adjusted for that long, that's a good business. Man, I'm, I'm Googling. If you, if you Google. Yeah, everybody's trying to find it. I'm sure all the listeners are trying to find it right now, too. But so while you try to find Gurdley's probably our resident Sherlock Holmes, probably going to find it first.

But let, let's try to dissect the, the, pricing here because this is a little convoluting. So it makes $900,000 a year of cash flow and they want $4.5 million for it. So on the face of it, you know, you're looking at 5x, right? But they say they've got $1.2 million of real estate and they also claim to have $1.2 million of inventory and $200,000 of FF&E. If we assume the FF&E includes the machines to follow the butane, I'm kind of surprised it's not higher. Maybe they're using a depreciated value, which would be a first.

Thank you, Tony Corey, business broker. If the inventory is actually, you know, it's probably bulk butane that hasn't been filled, if I had to guess. And then you got 1.2 of real estate. So even, let's say, you know, you get at 1.2 of real estate, that takes you down from 4.5 to 3-3, right, on 900,000. so now you're closer to 4x, right, a little under 4X. If you say that's a good inventory, if it's just butane you can move through and maybe he's over-inventory, you know, this is $3 million for $900,000 of cash flow in manufacturing, work four days a week, 10 hours, been around 150 years, SBA loan,

this seems like it might be a good deal. Except for the whole South Carolina thing. It's pretty good, right? Norse, North Carolina, right? North Carolina, right? Don't lump us in with those South Carolinians. Is there anything to read into the fact that the plant is only running at one-third capacity? To me, that's a sign.

If there was more demand for this stuff, surely they would run at a greater capacity. Or is that just, I mean, look, I'm not a manufacturing guy, so I don't know. So I think that's a huge diligence point. Like, you know, our friend Brent B. Beshore loves to say small businesses don't stay small on purpose. which would indicate, you know, to your point, Michael, maybe just that's all the demand there is for this type of butane, maybe in this area or maybe for this brand or in this niche or whatever might be, and you can't grow anymore. Or, and I've seen this too, which runs counter to Brent's claim, if this business is in fact 100 plus years old, this is like third generation and these, you know, the third generation could be on the beach clip in a coupon, like just not caring at all about growing it. So that would be one of the first things I would try to figure out is what is my actual tam and have I saturated it or is there a truly growth opportunity here?

So these are the little butane cans that like if you go in they use them for cooking stoves and heaters and all that kind of stuff like refilling like a zippo lighter and stuff like that. Yes. Oh, so you think this is like tied to the smoking market and stuff like that? No, the lighters market at least, which is not entirely smokers, but. could be. Yeah. I mean, you know, campers and people lighting candles, all that.

People like fires. It is interesting. I hung out a couple weeks ago with a guy about my age and he was smoking. And I was like, wait, this is my only friend that smokes. It was kind of a weird thing. And then, you know, when I was gone for our anniversary trip to Europe in April and seeing how everybody smoked, like, in Spain. Like, it was freaking weird.

It's so weird how much America has changed since, like, well, the past 30 years, right? Like, it's just, like, smoking has just disappeared. People, like, to some extent, if you smoke now, people kind of look at you funny. Uh, yes, I know. So it's, I would love to see, I'm sure,

exists a graph of cigarette sales in the United States. Probably completely tanked. But then overlay it on top of the vape sales graph, and it's probably pretty equal. Yeah. I think this is interesting. I mean, we don't really know enough about what they do, but if the business has had the staying power, if there's persistent demand, you kind of can't give them credit for the, you know, still having the ability to triple and size inside their existing warehouse just because that doesn't, that doesn't really help. Like, can you triple this thing?

I don't know. This piece of equipment looks very, very specialized. Maybe there's something else that you could fill in store very similarly. But my guess is that nobody's come in and just competed them away because it's such a small, like you said, it's such a small tam that people are like, let's just let them keep doing it and not worry about them. Unless they've got a brand. Like if this is bernzomatic butane or like the one brand in butane that every retailer

carries and why would they carry another one if it's priced competitively, And it's like these are dream acquisitions in a lot of ways, right? They just have the distribution mode. It's not worth like, who's going to knock them off? And the stores are like, I don't want some random butane brand. We already have this one. The random one won't be any cheaper. Everybody's been buying bernzomatic for 50, 100 years, why change?

That's a nice moat. To your point, Mills, I would also think maybe they can't sell more butane in the, you know, little eight-ounce canisters or whatever. But they've got, well, they've got here as a facility with room. I assume they've got a set of, SOPs for handling explosive gas safely and filling it. You know, can you expand into propane? Can you expand into larger butane canisters?

You know, I would think if you've got all the fixed cost already, there might be some adjacent markets that you could expand into, even if they were localish. Yeah. You know, you didn't need to ship it all around, but you say, hey, in my radius of a one-day, half-day truck drive, you know, can I sell industrial butane? Or what can I do?

You know, I bet you could grow this business if you brought some fresh energy to it, especially if it's 100 years old. Well, and we don't look at a lot of manufacturing, but you bring up a point that for some manufacturing, it can, it can be, part of their moat can be geographical because it's cost prohibitive to ship, right? Because maybe it's heavy or like in this case, it's highly volatile. And so it could be that there's somebody very similar doing this in, you know, the Pacific Northwest and then, you know, the Southwest and then the Northeast and they just, everybody's kind of like, we stick to our knitting because it doesn't make sense to ship this stuff, you know,

more than 500 miles or something like that. Right. Is there anything? I'm trying not to really like this, to be honest. It probably, it's probably in the middle of nowhere in North Carolina, just based on, like, rough math on the real estate. It's very, it's very, you know, inexpensive for what it is. So it's probably in the middle of nowhere in a,

not very desirable area. Yep. So that's probably your downside. You got to want to live in rural North Carolina. Tony, I looked at his profile. The business broker is out of Greenville, North Carolina,

not Greenville. Greenville, South Carolina is the cool of Greenville. Greenville, North Carolina is not close. I don't know if where Tony is is where the business is, but that part of North Carolina is rural nowhere. Yep. Your taxes will be low.

Your cross the living would be super low. A million dollars. year in income will make you the richest person in Greenville, North Carolina, probably. So you got that going for you. But it almost is like, gosh, it's priced. Once you take into account the inventory and the real estate, like you said, it's just priced so cheap. It's two times cash flow. Yeah.

I will say actually, Greenville is not that far from the beach. So it's kind of, it's not, you know, on the beach, but you're probably an hour from the beach. you know it's kind of near ECU there's there's some nice stuff going on so maybe the owner really is sitting on the beach clipping coupons very possible very possible how much you want to bet that the adjustments to evadda include a boat thousand bucks yes i love i love when you find stuff like that like the nuances of you know evadda ad backs i love when they're ebbat i addbacks i love when they're egregious like that. Like, yes, this is so ridiculous. I'm not spending $200,000 a year on boat expense. And that is, like, maybe you're taking customers, but it's so egregious, like, it truly can be added back.

Well, I don't know. I mean, it can be added back. I mean, if you're running a boat through your butane company, I would love to add that back. I mean, clearly the boat is not being used for the business. That's a great ad back, you ask me. Like, I don't have to argue about that. Yep, I will not have a boat Yes. Through the business. Done. There are some things that get messier, like season tickets to, you know,

sporting events that you're constantly taking customers to. And the seller's like, no, I've had those tickets in my family for 40 years. I'm not letting them go. But it's like, well, hey, your best customers expect to go to the game,

you know, and they expect you to pay for it. How are we going to make that work? That's true. So you can prop, this is, go ahead, Michael.

Yeah. So I don't know anything about the space. Like, if I'm like some random listener or, some guy like in San Antonio being made fun up because it's hot here. Like, how would I go about getting up to speed on this space? Like, Mill, you did your work like in business brokering and Bill, you did it in investment banking or in your career.

Like, okay, I want to learn about this space. Like, how do I go about doing it? Well, Michael, I always love your method of doing it, which is talk to 10 other business owners. Yeah. I mean, that is the absolute best way. And you just call them and you go, hey, you know, I'm from a geography that's not near you, you know, I'm looking at getting into this space or I'm writing a report on this

space or, you know, I'm trying to get smart, you know, can you spend 15 minutes with me? Then you ask them about macro, you ask them about the biggest risks, you ask them about the hardest parts, what keeps them up at night, that type of thing. And you'll get a pretty good sense for, you know, what's hard about this pretty quick. So I love, my, I call, I've always love that, is talk to as many business owners as possible. Yeah. I think it's tricky too. like you could sign the NDA on this and find out let's just say for example that like zipo or burnsomatic or somebody like that is 50 or 70 or 80 percent of their business you know that that's one reason it hasn't sold is they have one customer yeah and you know typically like if you're buying a business you're like I want to figure out you know up the food chain vendors and then down the food chain customers like how can I deris this but in those instances and in this instance if that's the case the seller's going to be like you can't go talk talk to Zippo. You can't talk to Burns-Omatic until, you know, maybe days before closed. So I think you are somewhat limited in how you triangulate about the business if there is customer

concentration or vendor concentration. Yes. I mean, that would make this thing a lot less attractive. If it is functionally a captive contract manufacturer with one customer, then you're just buying a contract. What do you call that, Michael? You've told us before. Monopsony. Monopsony? A monopsony? Yeah. Yeah. What was a monopsony again? Remind me. So it's basically an inverse monopoly.

So the idea of a monopoly is you only have one supplier. A monopsony is you only have one buyer. So in theory, for example, the U.S. Department of Defense is a monopsony, right, of buying military weapons here. But you start to see monopsonies occur naturally in markets as well. And you're like, if you look at what, say, Target and Walmart do or the big grocery chains, they end up being like there's a number one and a number two, right? Or folks that are in the basically like meat packing or meat processing or any of those kind of things, you'll see it like there's just a natural monopsony that gets created where there's only one or two buyers for a given thing. And that's why you don't see, except in rare circumstances, most of the suppliers for Target or Walmart are like, barely getting by. It's because Target, you have to sell the target and they'll tell you what they're

going to pay. And if you don't like cut the price down, they'll go to somebody else to offer the same thing. So that's what monopsony is when there's very few buyers and they put, they carve out all the margin from the suppliers. Home Depot loads is another example. There you go. That's a, that's a perfect one. Okay. So it's more about an industry that has fundamentally only a couple buyers rather than one company. Not how it's only one customer. So that would make this a lot less attractive. You know, that being said, if they did have a 10-year deal with one of these guys and it's

more than takes you past the SBA loan payoff period, you know, that might be a risk you want to take. You know, assuming also you can cash flow in the meantime, what you wouldn't want is to, you know, work for free functionally or, you know, work for $100,000 a year for the duration of the 10-year SBA loan, expecting there to be enterprise. value or substantial cash flow at the end of both the SBA loan and the contract and then watch both evaporate. You basically work for a job for 10 years for free.

So you'd want to make sure that it was still worth your while in the meantime. But if this is a one customer business with a big contract like that, you're under your underwriting changes to cigar butt based on the length of the contract. And the purchase price has still got to make sense. Yeah. So I think an interesting question about this business is, okay, I buy this. And to some extent, we're dealing into customer concentration because we're worried about something, which is like, okay, how do I make sure I don't lose my money if I buy this business? And manufacturing is a scary thing, right?

You have these high fixed costs. You have high repair costs. And you need to keep producing more and more stuff to get more and more profitable. And if demand ships below a certain level, it's pretty easy to go cash flow negative very quickly. And I don't know. That's kind of where my head goes on this. is like, how do I make sure I don't lose all my money if I pay $4.5 million for some real estate and a bunch of equipment that's only really valuable if it's producing, you know,

butane canisters. Yeah. I mean, I think you need contracts. Like you, or if not contracts, you've got to look at your customer relationships. And if they are, if you got, like, let me say what would be better. If this is truly more of a contract manufacturer of butane, and I've been kind of Googling around looking at the butane market. And the way it looks like is, yes, there is Berns amatic, which is the one that people

have heard of. But it seems like almost every lighter brand also wants their own brand of butane because I'm sure the margins are really good in butane. That's consumable. It's refillable. So it's very possible this butane filling company has 25 customers, all of which have been around for a long time and your key to the recurring revenue part of their lighter business. if that or maybe it's private label for a retailer plus the lighter brands. That's an okay business. I mean, I'm much less scared if I don't have customer concentration. I'm much less scared of going idle.

And also, if you pay a reasonable price for this, your debt service should be, which they're asking reasonable price. Your debt service should be reasonable such that you could stomach a 25% drop in revenue, you know, and still cover pretty well. This is a high leverage business, right? So basically your fixed cost here, because you're buying everything together, your fixed cost is the loan payment. And you're just got a ton of leverage on that. If you can grow the business, your loan payment does not go up.

You increase your output on the same capacity. You grow this business, gross margin drops to EBITDA, right? A lot of leverage, right? You shrink this business, gross margin comes right out of EBITDA. So you got to be sure it's not going to grow up to shrink, but man, if you can grow it, I think you can do so well with this. It all depends on if this is third generation Johnny clipping coupons on the beach or if Johnny's working just as hard as his granddad did and this is just as big as the market is. The background of this facility, if this is an actual picture of the facility is fascinating, it like opens up to like a yard, like a jungle. It literally looks like it's like in a window, you know.

There's just grass behind it. Yeah, but this is not a simple machine here. It really does look like Tony, the broker, showed up at this space and, like, took some pictures with his iPhone. That's what this picture looks like. Yeah, because you got these, like, gauges in the background. It looks like a very special, like, cabinet, you know, an enclosure. Well, I'm sure there's a lot of safety, right? I mean, this is explosive butane.

Like, this is death instantly. So there's a lot of, they got separate butane building. Maybe it's piped over to the main building with shut off. valves and the butane's got to run into the filler. I bet there is all kinds of safety equipment required. I mean, this is not a business that you buy and then disappear forever because the next phone call you're going to get is that the facility blew up. Yeah.

So, yeah, it's always interesting. So they probably also have a contract with one or more refineries nearby and they're getting big tanker loads of butane shipped to them because it does, I'm sure they're not refining refining petroleum here. No. No. So where is the nearest set of refineries in North Carolina? Do you guys know? Are there some in Charlotte? That's a great question. I don't know. There's a major, there's a major pipeline that runs through like Augusta and like up through the Carolinas. But I don't know about refineries. And this is also like you think this, you know, there's a propane is like the more, you know, commercially available and like blue rhino and all these different companies that distribute it. But, you know, out in the country, like most people have propane to heat their homes.

This is like a much lower consumption, you know, specialty gas. You look at what like, you know, the medical and industrial gas market, like Praxair. I mean, huge publicly traded companies that have gotten really good at, you know, being kind of the only player. I think in that, I think in that case there's two. I can't remember the other air gas. Air gas. Yeah. You know, and it's like oxyacetylene.

It's medical gas, all these different things. But you got to think, like, how many people, maybe there's commercial uses for butane that I'm not aware of outside of just, you know, using it for lighter fluid and stuff. I'm sure there must be. There must be. But I don't, I don't think it's, like, if you looked at the total butane market versus the total propane market, I think it's probably, you know, dwarfs it. Oh, yeah, I agree. Propane is huge. So, but that's a good point, Mills.

Like, so you've got a machine that can fill 12 ounce butane. You can fill 12 ounce anything gas, essentially. I would think. So, I mean, anything from like the bottled oxygen they sell in the ski towns to industrial applications. I mean, bottling other gases besides butane might be an interesting expansion opportunity as well. Yep, yep. Yeah, I would think you get a hustler in here that really wants to grow this business. You can probably find some adjacencies.

That's awesome. I think it's cool. I kind of, I might sign. I think I'm going to sign the NDA now that we've recorded so that I can, it's like curiosity gets the best of you like what do they do and where is it i found out on it bills yeah okay let's go in on it it's probably smack dab but it probably wouldn't be in between us because in between us is south carolina but um it's drivable it's going to be drivable for both of us and whenever there's emergencies bill you're going to you're going to be closer so you're going to be the first phone call

when the factory explodes we got a wild leak we need help oh geez no thanks you need a very competent GM in this one. Yeah. I like it, though. I mean, there's a high leverage on fixed costs. You're going to get, the other thing that's really interesting is that you're probably going to get better terms buying this equipment and real estate and everything. And then he got when he bought it.

Because you're going to get it as a government subsidized SBA loan. So this is about the lowest, not like basis, but this is like the lowest carrying cost. You can probably get into this, this, all these fixed assets. it's, right? Over a 10-year term with an SBA loan, which is long. So you really do have a lot of leverage where it just doesn't, I bet your gross margins are great because it's just gas. So it's just a question of, is this thing going to grow or is it going to shrink? And that's what make or makes or breaks you. Well, and like most manufacturing, especially if it's if it's older like this and it's been around, the replacement cost is astronomically higher than the like the actual install base of

the fixed assets. Like if you just had to go open this somewhere else, you're going to pay probably well over four million bucks just to assemble all the stuff. Yes, probably. I agree. I like it. One of the better ones we've seen, assuming it's not, it doesn't turn out to be a single customer business. Well, time will tell. I'm filling it out right now. I'm definitely in the I'm definitely in the worth digging in, but like also like feeling very like out of my element. Like there's there's just so many like gaps. I don't know about this business and market and how it all works. So I'd want to do a lot of homework to understand it.

But at first glance, like I'm with you, Bill. Like butane ain't going nowhere. Yeah. And what I like about this too is it is manufacturing. But as far as complexity goes, it's not that. complex. It's basically filling is what it is, right? Which is if you're not if you're non-technical searcher like this is the hurdle to learning this is not the same as like aircraft get grade CNC machining, you know, or assembly of something complex or or whatever it might be. So the bar is the

complexity bar is low. I like this for a searcher. Come in, learn it, have you know, put together a good business plan to scale above you know, experience that leverage about your fixed costs. I like it. And it's got a million bucks of cash flow, too, so it's big enough. The multiple is reasonable enough. You can do this entirely with SBA. There's real estate behind it. A lot to like for a searcher here.

Big caveat, you're moving to Greenville, North Carolina. Or you're going to get a phone call that your factory has exploded. That three people are dead and you're defaulting on your SBA loan. Those are your own thing. Yeah, you don't want that. I would be definitely moving to wherever this is. if I was a searcher. Well, that was a good one.

Good one. I love it. All right. Thanks y'all for listening to Acquisitions Anonymous. If you like this, we got something new, which is a new website. Gustavo has produced our new website, and the best part about it is every historical episode we've ever done is tagged by industry. So if you're looking for manufacturing or consumer products, e-commerce, software as a service, any industry you're interested in, you can go on our website, which is acqueu-unanon.

com and filter by industry. And you can hear hours and hours of content on whatever industry you're into of us basically diligent it for you and doing that, you know, talk to a bunch of business owners first part of diligence for free. So go check it out, ACQU anon.com. You can also get on our email list there. We will email you new episodes and some occasional unhinged ramblings probably, depending on how Michael Mills and I are, and Heather are feeling.

So go on the website, get on the email list. I think you guys really like it. People have been asking for that for a long time. So thanks for listening. Good to see you guys. We'll see you next time.