Acquisitions Anonymous - #1 for business buying, selling and operating - How This Car Warranty Broker Makes Money (And Should You Buy It?)

Episode Date: January 31, 2025

Ever wondered how third-party extended car warranty businesses actually make money? We break down an interesting deal in this episode!Sponsors:Capital Pad – A marketplace for acquisition entrepreneurs looking for funding or investors seeking opportunities in small business acquisitions. Check them out at CapitalPad.com.Viso Business Capital – Helping entrepreneurs secure the best SBA loans for business acquisitions. Sign up for a free live Q&A at VisoCap.net and click "Zoom Sign Up".In this episode, the Acquisitions Anonymous team, joined by Chelsea from Acquisition Lab, discusses a third-party extended car warranty business out of Pittsburgh. This unique deal raises questions about the company's actual role in the industry—whether they function as an insurer, a middleman, or a broker. The hosts explore the business model, margin potential, and financing options while also discussing whether such a business is bankable. With plenty of insights into industry dynamics and growth opportunities, this episode is a must-listen for acquisition entrepreneurs!Key HighlightsWhat does this business actually do? Understanding its role in the car warranty ecosystem.Revenue model breakdown: Are they carriers, brokers, or aggregators?Why aren't their margins higher? A deep dive into industry profitability.Financing considerations: Would banks or third-party lenders fund this acquisition?Growth opportunities: How could an owner expand and scale this business?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]

So what do they do exactly? Is it a brokerage for auto warranties? Are these, are these those people who send me text all the time that I have to say unsubscribe? I'm guessing that they're not working with like Mercedes dealerships. They're, you know, they're working with, you know, Michael's shiny used cars in San Antonio, Texas. We haven't really talked about that, but we don't, I don't think this company is actually handling the pricing. They are just a broker. They're a middleman. I mean, number one, I don't understand why it's not bigger if he's licensed all these places because it sounds like he's just tired. But I also don't understand why the margins aren't actually higher. You convince me. You convince me. Hello, another episode of Acquisitions Anonymous.

We don't have 100% here. Welcome back, everybody, to another episode of Acquisitions Anonymous. I'm Mills Snell, one of your co-host. We have the whole gang here today along with Chelsea from Acquisition Lab. We talk about a user-generated, user-submitted deal. Graham sent me a listing like 30 minutes before we recorded on LinkedIn about a company that we've never talked about before. It was a third party extended car warranty business out of Pittsburgh. Really interesting deal. We talk about the dynamics of, you know, what does this business even do?

Are they kind of the carrier and the insurer? Are they just a middleman and a aggregator or a broker? And then we talk about the margin profile. What could this business actually be doing? What are the growth avenues? How do you buy something like this? Depending on the nature of what they do, it may or may not even be financable by a bank or a third party financier. A lot of different topics that we cover. Super interesting. Thanks, Graham, for sending it in. Stick around after the episode after a quick word for our sponsors. Hey, everyone, it's Bill. And I want to tell you about maybe the most exciting sponsor we've had in a long time on the pod. It's called CapitalPad. And it is the thing that I wish existed when I started my journey of operating and investing in small businesses. So

CapitalPad is a marketplace for acquisition entrepreneurs. that is people who want to buy a business and need capital to list their deals and solicit capital from other people who want to invest in acquisition deals. So if you want to back somebody buying a small business, CapitalPad is a place to do it. And if you want to buy a business and need capital, you can go on CapitalPad to be introduced to investors. So the really great thing, too, from the investor side is that CapitalPad takes care of all of the details that can get hairy with small business acquisitions. They handle standardized terms,

standardized governance, standardized distributions all up front in black and white. Basically, Capital Pad professionalizes investing in small businesses. And the returns can be really, really good. I'm so stoked they exist. It's founded by my friend Travis, who is a phenomenal entrepreneur in his own right. So if this sounds like something that is appealing to you, if you want to buy a small business and need capital, or if you want to invest in small business, businesses, go check out Capitalpad.com and tell them that Acquisitions Anonymous sent you. Mills, I have good news and bad news. Which would you like? Oh, gosh. Hit me with the bad news first. Bad news is Bill's not here because he's off skiing and

I'm not with him. He said he'll be on in five minutes. So look at his commitment level. What? From the ski slope? Maybe they're done. Are they still there? No, he's, I think, I don't know. I thought he still in the mountains being... All right, well, what's the good news? Because I think we've already solved the bad news. Well, the good news is Chelsea's here today. Great. Chelsea, we're so glad you're here.

Happy to be here. What's new with you? Anything exciting? My kids go to space camp. I think that's pretty cool. Space camp. Space camp. Well, at least it's not band camp.

It's not band camp, although he did tell me he's joining band. He's starting middle school next year. So he came home. He's like, Mom, I'm going to play the trumpet. I'm like, okay. Yay. Did you have, how old are your kids now? They just turned 11 and 7 this month.

When they were younger, did you have dreams for them? Like, did you want them to be athletes or band nerds or space people? That's really all I want for my kids. I just want them to be happy. Yeah, it's super cool. All right. Well, I feel the same, except I wanted my kids to be athletes. I meant, yeah, I wanted them to be athletes, obviously.

So Michael doesn't feel isolated. his answer. There you go, perfect. Or you could be like Heather and your kids could work with you in your business and help you crush it at helping people find money. That's the other side of parents. We're talking about aspirations for our kids, Heather. Yeah. Oh, shoot, my internet's Heather looks very happy and frozen right now. It's very cold where Heather is right now. Well, while she comes back, let's start doing this deal. I'm so. excited because I had somebody reach out to me on LinkedIn, a guy named Graham. And I'm pretty sure Graham would be okay with me saying this, but he sent me this deal that he's like big fan of the

podcast. It's always really entertaining. I learned a ton. I've never heard you guys talk about an automotive warranty company. And he sent us a listing. And I agree, I think, with a lot of his sentiment. So I'm going to pop it up and share it on the screen and I'll read it. this is interesting. I don't think I've ever looked at one of these. I've gotten calls from them, but. Yeah, that's what I was going to say. That's all I can think about.

He even acknowledges, and I think the listing even acknowledges that. So this is from Sunbelt business brokers, and it's under the automotive and boat category, which I would think that most of these are not, you know, this type of business. They're probably like automotive and boat dealerships or service businesses or whatever. It says price reduced, motivated seller, well-established and very profitable auto-warranty business for sale in the Pittsburgh,

Pennsylvania area. It's a unique opportunity as this type of business does not come to the market very often. The opportunity to grow this business is tremendous as it is licensed in 10 states. These states include Michigan, Indiana, Tennessee, Kentucky, Ohio, Pennsylvania, West Virginia, South Carolina, Delaware, and New Jersey. The auto warranty industry can be very lucrative and continues to grow. Business can be managed from anywhere by way of a virtual office. This is a complete turnkey business. And with an aggressive owner, along with a marketing campaign, it could be expanded rapidly. The owners decided to retire, but we'll provide a training and transition period,

depending on the buyer's needs. For additional information, please contact Chuck Fink, who is a senior certified Main Street business broker. We have his phone number and his email. It's a Comcast.net email. Love it. The asking price is $595,000. The cash flow is $250,000 even. The revenue is $59,000, so about, you know, about one-time's revenue, down payment in A.

The business is located in Pittsburgh, Pennsylvania, and the owner wants to retire. That's all we got from Chuck. What do you guys think about this? So what do they do exactly? Is it a brokerage for? auto warranties? Are these, are these those people who send me text all the time that I have to say unsubscribe? I think that, I think that what it is, is it's a, it's an aggregator type platform is my, my understanding of the way these businesses work. They go out, they generate

leads in demand and they sell, you know, warranties, extended third party warranties, not a manufacturer's warranty that's like, you know, for the first 100,000 miles or five years or whatever. And then, they establish service agreements with the chains of repair shops and say, hey, we have this lead. It's coming to you. And, you know, they negotiate through some kind of collective bargaining, or, you know, volume-based purchasing power to get to, to pay less for these services than you or I would just as a retail customer. But who's actually ensuring the, you know, know, who's actually holding the liability, I guess. If somebody has a claim, it's not this company.

This company's far too small, right? I would think so. But my impersonation of the auto warranty industry is that this company wouldn't even be a flee on the back of the big providers. You know, they've got to be massive, massive originators and aggregators of the service. So maybe to your point. Maybe they're just lead gen. And then they're selling that long tail of liability to a provider. And they're just getting paid a commission in essence for the origination.

Okay. Interesting. So why did they need to be licensed? Because they're they're brokering these warranties? Maybe the consumer disclosures you make and, you know, there's some regulation around that probably. Okay, so explain to me like I'm a six-foot-five idiot from Texas. You're selling insurance. I guess insurance is highly regulated everywhere.

Every state has different insurance regulations. That's what I think this falls under. You're basically like, I think, an insurance agent, and the insurance is warranty coverage. Got it. And because you're selling that, there's some kind of regulations around that you have to go to some training and you have to make sure that you're giving proper disclosures of what a consumer is

and is not getting in their coverage. That's my guess. And my customer is the auto shops or my customer is the consumers? Who am I? A consumer, I think. I think you have consumers. Yeah. So these guys are selling to consumers. Auto warranty policies done on behalf of an insurer. So they're a licensed insurer's broker and they're selling those direct to consumers. That's our best. but that's what I think. So I just Google. Do not do a great job of describing it.

I just Google this. I think auto warranties are regulated by the state insurance commission in some states, but it varies state to state, which might tell us something about the states that they're in, because it has not all been, you know, just one state after the other. It seems like kind of a smattering of them. Is this where I can make a joke about auto warranties and electronics warranties being a hidden intelligence test in life, or is that too soon? Michael, are you saying I was stupid for getting my home warranty?

Bill's here. Yeah, Bill, we're trying to figure out what this business does. And maybe that's a sub-tweet to the broker. We think this is a business that sells auto warranties direct to consumers in 10 different states. And they've done 600,000 of revenue. doing that annually with an owner who wants to retire. How is it not bigger than that in 10 states? Well, they're licensed in 10 states. The owner wants to retire and you could expand. So

I would I wonder if this primarily, if this tells us that there's a link between this business and a chain of repair shops instead of a big, you know, insurance carrier in essence, it would be taking the risk from them. If, if, if, let's say they have a really good relationship with a franchisee from Midas or something like that, who's in these 10, 10 states and said, follow me. I'll sell, you know, you help sell the extended warranties because it's a regulated business and we'll handle all the repairs or something like that. Maybe that's how they got in the markets they're in.

Yeah, I mean, I assume that they are sourcing leads from, you know, a series of what I'll call kind of kind of lower end car dealers, use car dealers, you buy a use car dealers. you buy a use car, you want to add a warranty on, you know, they're probably reselling. I don't think there's no way at this scale they're carrying the risk. Right. There's just no way. So this is a resale organization that has, that is getting leads or is somehow embedded at some place that's selling or fixing cars, which is kind of clever, right?

And they're probably paying an origination fee. Whoever sells the car gets a fee, gets a revenue share somehow. on the warranted. It's interesting, too, like, just quick Googling and looking at some of the laws. Like, in South Carolina, the insurance commission for service provider contracts, you have to register each year with the state. And then in order to, in order for the insurance commission to feel comfortable that you're actually going to pay out claims, providers have to, they can insure their contracts with a piece of reinsurance, or they can keep 40% of the money in a reserve account. So there's a bunch of different, you know, a bunch of different hoops to jump through, which makes this business even more complicated than it looks at face value.

Right. So there could be like there could be some of their revenue has to be escrowed for a while is what you're saying? Potentially, yeah. Yeah, depending on the state regulation. Interesting. But that there's no way they're subject to that. Like they're not doing that. They're reselling somebody else's insurance. I think, yeah, more than likely what it is is that they are a carrier.

Or they're not a carrier, right? The big names. Yeah, they're a broken. They're commission only. It doesn't make sense otherwise. Like my brain is like not, there's no business here because of the risk level. Like it's too small to truly honor a bunch of warranties if they're carrying all the liabilities. Yeah.

This is a buy a job scenario is what I'm seeing. For sure. Yeah. It's just somebody has figured out how to make $250,000 a year selling a very niche. insurance product as a broker. And that's what you'd be buying. I'm taking the other side of this, Heather. I think, yes, if you can't grow it, you're buying a job. Agreed. I think it's possible that this owner is terrible at it. I mean, because it's so small, right? I mean, it's doing $600,000 of gross revenue. The margins are awesome, $250 of cash flow. What I see here is probably a model that's been proven,

right? He just doesn't have enough points of distribution, but he's licensed in 10 states. So you buy this thing and assuming the license transfers, you spin up like a dealer recruitment engine and you use the dealers you already have as proof points and you sell it in the market, you make this thing 10 times as big. I think the transferability of the license is a question I have, right? It's like, is there, if it doesn't transfer, then you're looking at a stock sale and And is there any liabilities there? It just depends on this business model, right?

Like, yeah. Are you licensed as an individual or as a business? Correct. A lot of times these insurance licenses are as an individual. Correct. So yeah, you would have to check that out. Though I think insurance brokerage licenses up there with like financial advisor, like residential real real estate broker, like they're pretty easy.

Shouldn't be that hard. Go to a class for two weeks. But there's a bureaucracy. There's a bureaucracy in 10 states, and they're probably all slightly different. And when you're trying to buy a business with licenses, a lot of times you run into some unexpected brick walls that don't make any sense because it's bureaucracy. I looked at a deal once that was a driving school, like, you know, when you turn 16 or if you're an immigrant. And the state that it was located in had zero process for a new buyer coming in to. own that business, the licensing process. They did not have one. The buyer had to hire an attorney

and kind of a politician to do some lobbying. I guess I should say a lobbyist, you know, because the state literally had never had one of those businesses sell and didn't have a process and they had to build one from the ground up to allow that transaction to happen. So stuff like that happens. One of the things that's crazy about the United States now is when you look at how difficult it is to become like a plumber versus how difficult it is to like become an insurance agent or a broker like like it is so much harder to become a licensed plumber now than it is to become a residential real estate broker and do million dollar transaction that guide people through them like it is just it's crazy with some of the kind of different certifications going on anyway this is we need more plumbers it's too hard to be a plumber that's my opinion there is a whole soapbox about professional licensing generally it's harder to become a hairdress than to do most thing. You need like 200 hours of training to be an hairdresser. So do you know why the government has done this?

Lobbying and cartels, I assume. Hi, Heather here. When I'm not breaking down deals with these guys, I'm helping people get the right SBA loans for their business acquisitions. Because when you're buying a business, the best financing isn't one size fits all. There's the best rate, fastest to close,

the specific loan structure that you need, or a little of all of those things. That's why my company, Vizzo Business Capital, works with over 30 different lenders to find you the best funding in less time and with less friction. So you can focus on the deal. Sign up for a free live Q&A session on SBA loans at Vizocat.net. Then click Zoom sign up in the top right corner. That's V-I-S-O-C-A-P.net and click Zoom sign up. When they went and crushed all the unions, right?

Unions used to be a big deal. When they went and crushed all the unions, they had to figure out. out another way to put labor constraints around certain things. So states basically, you know, if you always kind of assume the state wants to get into a business, they got into that business, right? Yeah. So they they took over what the unions had historically done and that's why we have these high level kind of licensure things. I feel like we'll need like a ding, ding, ding, the more you know. I have another one of these that's a similar explanation of the mafia being a competitor for

taxes, but I will save that for a future episode. The fun never ends on this podcast. Well, the mafia, when they did, when they used to go shake people down, they would refer to him as taxing. They would call it taxing. So like, why do you think the government to some extent hates the mafia? First of all, I hate the mafia. I'm anti-mafia. Just I'm anti-cray.

It just needs to be set up front. Just so you know. Putting it out there. Because this is going to sound like Michael is very pro-Mafia. I'm anti-Mafia. Pro-heans, pro-Mafi. But yeah, like the, the, the, one of the, the, the, the thing the mafia did was compete for tax dollars. They would tax local

businesses. So anyway, okay. Let's get back to things that are not going to get me canceled for $100, Alex. Thank you. I did, I did a little bit of Googling. And so the large, like one of the larger third party extended warranty providers is car checks, C-H-E-X. And it looks like their revenue is only around $35 million, which obviously is many, many, many multiple times larger than this. But I think when if they're one of the big players, I don't think the tam of this is, you know, it's not a billion dollar industry. And I think most, you know, on the new car sales side, you would be competing with the manufacturer's warranty, which have declined over time.

And they've almost gotten to the point where they're embarrassing. But I think the market dynamics is weird. Like you have a uphill battle in terms of sales. people, you know, assume like most insurance products, I'm going to pay premiums and I'm not going to be paid out of benefit that feels commiserate with, you know, the level of risk sharing that's going on. And then you're up against, you know, 800 pound guerrillas. And even if you're the small guy, maybe they have some niche that isn't disclosed here, like imports or, you know, like something that matters. But I find a, I find it hard to figure out what the real competitive advantage would be for this business. Well, I mean, so when you go by a car, which by the way, I hate doing, by the way, there are people who like to go buy cars.

Like my father-in-law loves to go by cars. I'm like, what are you doing? I kind of like it. It's fun. You drive a new car and then you get to negotiate against a train professional. It's like, so it's fun. It's like playing chess with Gary Casper. I have no interest.

It just doesn't feel fun to be at a disadvantage. How you get better. Sometimes I just go in there for fun. walk away at the last one. You're like, here's your paperwork to sign and Bill's like, I'm out. This was a lot of fun, guys. Thanks for plan. I'll see you next week.

But when you go to that person in the back, the finance manager, they are always trying to sell you some scammy auto warranty, which, by the way, always bothers me when they try to sell you the auto warranty right after the salesperson just told you how reliable the car is. I'm like, whoa, you should talk to the guy out front. He just told me this thing is rock solid. Anyway, so they try, but that who? What's the value chain for that warranty? Like, Bill, do you know where that comes in?

Is that the dealer? Like, where do they sell it? Well, the dealer's selling it to you. It's sometimes, I guess, it's- It's always a third-party warranty. 100%. Yeah. And so, like, the deal is just getting a spiff.

Like, they're getting 400 bucks every time they sell on. And I assume that's what this business is doing also. Agreed. I'm guessing that they're not working with like Mercedes dealerships. They're, you know, they're working with, you know, you know, Michael's shiny used cars in San Antonio, Texas. But, you know, Mills, Mills Mobiles in Columbia, South Carolina or whatever it will be, maybe. So what I would want to understand, I have seen examples of searchers buying businesses like this.

And where the value chain is in place, right? They're contracted out with the warranty providers. They're able to resell that stuff. they're licensed in the states and they're in some car dealers. That's the value chain you got to put together here to do this. And then once that's together, it's just a sales business, right? It's selling into more dealerships and then supporting your dealerships and how to push the warranty. And if you can get good at that and just out hustle the other guys, I think I've seen people blow up

businesses like this. It's interesting. Chris Hoffman had a tweet about this, I think, in the past week with, you know, extended at home warranties and how if you're a real top notch, you know, HVAC technician or plumber or electrician, you avoid doing home warranty work because it's usually, you know, terrible pricing because the warranty company is saying, oh, yeah, for that, you might charge $1,000 at retail, but we only pay $475, you know, because we're going to send you a lot of them and whether or not that actually pans out. He had some comment about how they don't do that type of work. But I wonder,

You know, in this case, if it's, I would, I think it has to be the same, you know, in, in the auto warranty world. Bill, I think because you came on a minute late, the, we got sent this deal by a listener on LinkedIn. They sent it to me like 30 minutes ago. And a guy named Graham, who it looks like is maybe in the, the asset management space, but as a listener, his, I didn't go into all this before. but he one of the things he says he likes is little to no cap x high margins fragmentation and a general poor perception from the public based on scam calls for extended warranties i like this idea though he says i wonder if there's room for disruption by a company that prioritizes customer service good branding but then he says a proprietary system to price warranties by vehicle type age and other characteristics

we haven't really talked about that but we don't i don't think this company is actually handling the pricing They are just a broker. They're a middleman who is passing through, you know, the actuaries. Yeah, or whatever they call them on the, you know, the carrier side that sets the pricing. So I don't think you really have control over that. And I wonder, is this, is this a declining market? If I think, when we think it is, I think, you know, buying warranties in general is probably on the decline. And in specifically this type of auto warranty, this sort of like used car auto warranty.

what are the trends? What are the macro trends? I don't like to see people buy businesses where it's got a heavy downward trend. It's really hard to think that you're going to turn that around. The other thing that we've noticed with our fleet vehicles is that we have all Chevy Silveradoes, but Chevy as a manufacturer has been decreasing the warranty. Like it used to be that everything was 100,000 mile warranty and that covers like the power. train the engine, the transmission. But they've been declining more and more now. And I can't remember what it was on our most recent ones. But I think now the manufacturers power train warranty, it's like around 40,000 miles or maybe 50,000 miles. So, you know, manufacturers are really good

at knowing when things are going to break and when, you know, the scale is going to tip out of their favor in terms of holding that liability. So I think you've got, you've got that as a growing dynamic too that the components on a lot of these cars aren't lasting as long and they don't want to be on the hook for the cheap plastic thing breaking. So then the cost of these policies would be going up, which would make it harder for you to sell. We just sold y'all a semi last year with 1.3 million miles on it. And the transmission went out. And we were like, it's probably totaled. like we should go ahead and sell it. So we bought a new to us.

It was a 1999. We bought a 2017 freight liner. We've had more problems with the 2017 freight liner than we had with the 1999 because little things, like it has a plastic radiator that breaks every so often when we go to the dump. And that's a $4,000 fix. Well, we bought the thing for like $25,000. So it's just this like interesting,

roadable and expendable parts and how that ends up being like a death knell. I have one question to you guys because like the margins look lovely, but they're not as high as I would expect that the business model is what we're describing. I just don't understand why he's not, I mean, number one, I don't understand why it's not bigger if he's licensed all these places because it sounds like he's just tired. But I also don't understand why the margins aren't actually higher. Yeah, because let's think about what are his costs.

Exactly. The dealer, the auto dealer. I think he has to share. Yeah, that's what I think. It's mostly that. It's the revenue split with how he gets to. He has bad arrangements too. Because even just like a quick Google says that this is lower than it should be,

even if he's a retailer or a broker, right? He should still be getting at least half to 70% margin. So like, it just seems odd to me that it's as low as it is. But I do like, I have to say that, you know, Chuck here has priced it reasonably, right? Like I always like when I don't see astronomical multiples because that's sometimes a surprise. And if you scroll down, it says SBA prequalified, no. Look at them. Well, at least they're honest. Yeah. Exactly. So yeah. And what are there? Yeah, I just have questions. There's only two employees. Right. And there's a part time.

The cost center. You know, it's not like they have 10 people in a phone bank all day, every day, you know, doing origination. Well, okay, though, but it's not a big business. So it's 600,000 in sales. You can spend 100 grand on two employees, right? That's true. It makes sense that you, that you got 40% margins here. Yeah.

According to, according to Gemini AI, insurance brokerages typically operated a 40% gross margin. 25 to 40%. Yeah. The other thing that would be interesting is can you sell other stuff, like RV warranties, can you sell snowmobile warranties? You know, what other dealers, you know, can you take this model and sell into? Again, I'm assuming he's, you know, you just look at the warranty catalogs of the insurers that you work with and you go, what are the things can I sell? And then you've got a sales engine and then you sell to dealers and help them sell to customers. And if you can scale that, I mean, I'm thinking like 10 people overseas calling,

every RV dealership in the country. Hey, hey, do you sell warranties? If not, would you like to make an extra $1,000 a week? Here's how you do it. Here's the scripts, you know, sign up. And you get to, you have a certain funnel hit rate on that. And you could, you can make this thing a lot bigger. Yeah, I agree. Heather, you know, they've acknowledged the, it's not SBA prequalified. The SBA doesn't like financing related businesses. What about what about insurance or brokerage? Well, brokerage would be fine. So if we knew for sure this was just a brokerage and they're not actually carrying the liability of the insurance, it's eligible. That would be SBA eligible. But a business that is carrying some kind of financial liability with insurance or lending like mortgages or something, those are not eligible because there's just, you know, they're too hard to underwrite. They have this big potential risk that could happen. But I think this is, this one's probably eligible from what we've talked about. It's interesting. I'm glad Graham sent it to us. I think it's worth getting the book on. I'm interested. It would be interesting just to find out what do they actually do and how do they do it, you know? Agreed. I want you to buy this just so you'll put me on your list and start texting me about my auto warranty. I want your voice in my voice bill. Like, please call me back immediately about your home and auto warranty, Mr. Gurdley. This is Bill Delisandro. You have a big problem.

I like that they have the aggressive. They're like, it will be good with an aggressive owner. It's like, okay, well, they're making it known, right? Yeah. Of what it's going to take to make this successful. Very good point. All right. So did we cover who should buy this?

Besides Bill. Besides Bill. It's just Bill. I think a lot of people could buy it. I think a searcher could buy this. I think if you have a certain skill set, right? Like, Bill, you said you could just, you have a sales machine. And I don't know that this has a sales machine.

You need to build it, right? So you have to be someone that can build a sales set. machine, right? And then that's a skill set that's pretty valuable. If you know how to put a sales team in place and you know how to motivate people, go for it. I don't think you have to, I do not think this business needs a specialized background personally. One thing that we haven't talked about is like you could probably do some analysis of the current book of business. You know, a lot of insurance products function with a really large commission in year one. And then, you know, theoretically a tail of commissions. I don't know if this is exactly like that or not,

but let's say like the bull case here, Bill, and I'm changing my mind is what if what if they have, you know, you could do a discounted cash flow analysis on the, you know, perpetual flow of cash flow associated with these premiums or the commission split and say, okay, if it churns X amount of percent historically and we think it's going to keep doing that in the future or even ramp it up, this might be cheap. Might be. Yeah. It's worth learning more.

I mean, this is only an anonymous teaser. That's why I like it. I think there's all kinds of things that could be wrong with it. But a lot of times we see teasers on the show where you're like, no matter what, there's nothing I can learn. Yeah. That makes me interested in this. As good as it looks.

Yeah. This could be a niche that it's just like, we're doing rural RV dealerships and we own this. And it's like straight like to go along with your idea. imagining this could be awesome, there's potential for this to be totally awesome. So I'm with you, Bill. Yeah, I think so. So Bill, are you signing the NDA or am I? I'll let you do it, Mel.

All right. All right. Do you think these guys ensure pizza boats and worm farms? That's my last question. They need to. A new product line. Growth channels. That's right.

Because there is at least one pizza boat and one worm form that we know of. Cool. All right. We all wrap it up there. Chelsea, what's new with you guys professionally in the business and stuff? We are still going. We've just finished our, I guess we're on 51st cohort of lab members. We're almost near 900 members.

We had three closings last week or this week. I don't know. They're all blurring together. So, yeah, it's amazing. And I'm very blessed to work with them all. Yeah. And where can people find out more about the opportunity? Acquisitionlab.com.

If you're interested in applying, go to acquisition, love.com for slash application or click apply now. You can find me on LinkedIn if you have questions or email me at Chelsea at by thenbindbill.com. Yeah, you rock. All right, everybody. We'll wrap it up here. Oh, do we need to do thumbs up and thumbs down. Bill is two thumbs up. Heather. You convince me. I just requested the india. All right. Thumbs up too. I'm having a cooperative day. No contrarianism today. Thanks Graham for sending it to us on LinkedIn. Yeah. Fine. Interesting deals. Send them our way. We love talking about it. All right. See all next week.