Acquisitions Anonymous - #1 for business buying, selling and operating - Should we buy this drag strip... for the land? - Acquisitions Anonymous episode 160

Episode Date: January 20, 2023

Michael Girdley (@Girdley) and Bill D’Alessandro (@BillDA) talk about a Unique Family Amusement Waterpark & Campground Facility in the United States.We discussed this deal but also dug into how to value the real estate involved in a transaction, how that relates to the business's overall value, and how to value and manage cash flow in a seasonal business. High CapEx businesses and financial metrics don’t get along well, so we also shed some light on what to analyze when looking at one of these.Company:                  Unique Family Amusement Waterpark & Campground FacilityLocation:                    United StatesStated Financials:      2022 Sales   $ 7,900,000   |   2022 EBITDA   $ 2,183,000Asking Price:             Find out in our newsletter ;-)-----Thanks to our sponsors!CloudBookkeeping offers adaptable solutions to businesses that want to focus on growth with a “client service first” approach. They offer a full suite of accounting services, including sophisticated reporting, QuickBooks software solutions, and full-service payroll options.-----Show Notes:(00:00) - Introduction(00:42) - Our Sponsor is CloudBookKeeping.com(02:26) - What is going on with the Twitter algo?!(04:45) - Deal & financials: Unique Family Amusement Waterpark & Campground Facility(06:00) - What is interesting about this deal?(08:19) - Is this an asset sale or a business sale?(11:54) - Why is this acquisition so financially feasible?(13:18) - How does bonus depreciation work?(13:51) - What is the EBITDA trap with this high CapEx business?(22:41) - Is the Real Estate of this deal worth the price?(26:41) - Where is the primary value of this deal?(28:47) - Do you think we raise money in this podcast?-----Additional episodes you might enjoy:#158 - $1.2mm revenue Court Maintenance Company for Sale!#157 - Make a $1mm/yr with a Language School#156 - 60% Profit Margin Amazon Online Community for Sale#155 - A $3mm profit-a-year water delivery business!#154 - A Truck Driver School for sale in Texas#152 - Should we buy this Ambulance company?#150 - Let’s buy a medical staffing business#148 - Growth Marketing explained: Shopify Superfood Greens Brand with 40% subscription rate w/ Baller Jesse PujjiSubscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [e-mail]

Hey, everyone. Welcome back to another episode of Acquisitions Anonymous. I'm Bill Dallisandro, one of your hosts. And I am here this week with Michael Gurdley. And we talk about a raceway amusement park campground business that's doing $2.2 million of EBITDA is on almost 400 acres. Michael does his best Sherlock Holmes. And I think we actually figure out the name of the business, the amusement park and raceway by the end of the episode. But there's some really good banter about how to value land, how to value land, how to value. value an operating business on top of land, how to value a seasonal business and what that would all be like. So it's a really fun one. Michael and I go off on a bunch of tangents and have a great time with this one. So I hope you enjoyed this week's episode of Acquisitions Anonymous. Hey, Michael here. Want to talk to you about today's sponsor for the episode, which is cloudbookkeeping.com. So cloud bookkeeping is actually run by my neighbor, Charlie. So I've met him in person and can attest that he's a real human being and a good person. And what cloud bookkeeping does is offer a full suite of bookkeeping services all in the cloud for you around QuickBooks and other

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

I know many of you have and see if he can help you, make running your business easier and more fun by letting them help with a lot of the bookkeeping solutions. So, and when you call, mention this podcast, it would help us and help Charlie know that we're supporting him as well. So thanks a bunch and cloudbookkeeping.com as the sponsor for today's episode. All right. Welcome back to another episode of Actus Anonymous. This is a cool one. This was submitted by a Twitter follower. I love doing the Twitter deals, Michael.

I mean, why are we on Twitter if not to see deals? Absolutely. Well, I'm just maybe out of Twitter jail now. So people start to see somebody. I don't know if it happened to you, but like 10 days ago, my Twitter just stopped working. Like, nobody would see my post. Like, I wasn't visible in search. Did you figure out what you said or anything?

Like my outside theory, I have two theories. One theory is that Elon and the gang are trying to raise another round of funding. So they're trying to juice the stats, which means they've made it so viral posts are going super viral, but long-tail content like yours or mine is getting punished because of that because it's getting crowded out. So that's theory number one. That's Gurdley tinfoil hat theory. Theory number two is for my birthday, I did a tweet thread that was the 15 things like I've learned in the past 20 years and that you should know.

And it was all pictures of Chili's meals and Chili's restaurants, which I suspect I might have tripped, because it all happened right after that, I suspect I might have tripped some sort of like porn spammer or something. Chilies and porn are similar. That's true. It is the porn of food. And now this podcast is. is going to be black hole too because we said porn.

Look, there's also the other thing, which is like my content could just be crap, which it's easy to blame everything else and I'm just putting out bad content. So we'll see. I will say, I think there's some truth to what you're saying about how the smaller, the shorter stuff's going viral. I went pretty viral for me with the AI profile pictures thing. And that was just one, one tweet and a small follow up. So I think it's possible.

Yeah. Well, you know, Chris Bockey, I saw one of his tweets, like he made a joke about that 30 under 30 lady that got caught, like basically sold her company for $150 million to chase bank or J.P. Morgan or something. And it turns out it was 100% of fraud. She was just lying about everything. And she was like 30 under 30 with Ford. So he made a joke about that. And it's like 40,000 likes, like huge viral, 10 million views. And it's like, you know, that's cool. But like, you know, is Twitter going to turn into basically us weekly, right? Which, you know, it was great because you could find corners of it that were like a little bit of us weakly, but a lot more

the economist and Wall Street Journal type thought and seriousness to it. And I hope they don't ruin it by burning the ships, if that makes sense with this kind of push they're doing. Yeah, with just push for pure engagement. Yeah, 100%. As they say in the wire, duke in the stats. Juke in the stats. All right, Michael, you got a cool one.

You going to read this one to us today? Yeah, I got it. It comes from generational equity, which unfortunately Mills is not here because I know there is favorite brokerage. For those of you on YouTube, I'm winking. Like, that's the worst wink I've ever seen, actually. So it's from generational equity. It is listing number 64,836.

And it is a unique family amusement water park and campground facility located in the United States. 2022 estimated sales were 7.9 million. And 2022 estimated EBIDA was 2.1 million. Highlights. The company is an amusement park. raceway and campground, serving facilities and car enthusiasts with a wide range of entertainment offerings. The park has been entertaining families since 1898 and has been under the current ownership since 1984. The raceway is a mainstay in the county and hosts big ticket events with

significant car organizations such as the National Hot Rite Association and Harley-Gavenson. Each race event brings in thousands of guests to the area, many of which stay in the company's campground, which offers over 400 campsites. Here's some stats, 348 acres, 19 full-time employees, and 400 part-time employees. Okay, so this is a racetrack bill with some rides and a campground? Is that what it is? I think some rides understates it. I think there's a roller coaster and like a giant water slide, like a serious amusement park. Do they really, I mean, for those of you not on YouTube, literally there's a picture here of like a 300 foot tall wooden roller coaster like you'd see at Six Flags. Like, I wonder if that stock photos or like if I buy this company, I get a 300

foot tall wooden roller coaster like they have at six bucks like my kids this this is the first deal besides the Lego mini figs oh for sure kids won't me to buy Lego mini figs don't get me going how excited but so this is cool right this has been around since 1898 like when do you have chance to buy a business has been around since 1898 yeah I mean our family business has been around since 1962 or 1946 depending on how you count it and it feels like you know feels like we've outlasted like whatever 15 presidents But this is like not even in the last century. That's wild.

And that tells me, I mean, it seems like it is kind of race track-centric, right? That tells me that this race track, whatever it is, has got to be like sort of a landmark or like a name. Like people have been racing cars and dogs or whatever they're racing here for over 100 years. That says something. 100%. Well, here they have the breakdown of revenue. So I'll go through this. number one is park admissions, 31%, number two is raceway admissions, 30%, concessions is 18%,

campsite, rental, and other are 10% and 11% each. So somewhat a distributed kind of thing, though you have to imagine a lot of the concessions is because of raceway and a lot of the campsite rental is probably because of raceway as well. You know, that's one of those things where I'm like, hmm, this is interesting that like, it seems like they have kind of distributed type revenue sources, but in reality, they're probably close. Yes, I'm sure it's, if you stopped holding races at the raceway, everything else would suffer significantly. So should we do the little game where we try to figure out where this is? I would love that.

So this, what's interesting, I think your tip off here is it hosts weekly big ticket events with what was the National Hot Rod Association and Harley Davidson. I mean, these are not like go-kart things, right? You know, these are these are real race organizations. 400 campsites, you know, 350 acres. The other thing that's interesting to me is like 350 acres is worth money, right? And there's also PPNE here, like there's the roller coaster. So I mean, this is the roller coaster we get. You know, are they trying to sell you the business separate from the assets or the assets with the business?

You know, I can't really tell here. It says the company's facilities and resources are not currently at capacity. So future growth will be supported by the current assets and facilities on hand. The company occupies nearly 400 acres of land and has room to develop additional attractions and expand existing offerings. A little bit of cap X there, I would think. But it seems like they are selling the land with the business, which you're going to get $2.1 million, $2.2 million of cash flow and 400 acres of land for $8 million. I mean, that's not terrible, especially that it's business that's been around for 100 years. Yeah, for sure.

Yeah, they throw in some land. That also helps with financing that thing. If you want to borrow against it, you have 400, 400, you know, basically acres of land and a bunch of equipment. I mean, that's one of the things nice about this deal. Like, you've got a bunch of equipment, land, the types of assets that a bank wants to lend against. Oh, yeah, for sure. So here's what I did, actually. So this is a fun game, and you can do this whenever you see a teaser.

And so the game is, how do you figure out where the, let me figure out what company it is without signing the NDA. And so in this case, it turns out the NHRA does us a favor. And I'll pull this up here on the screen. It goes through and it gives us a list of all of the different drag strips throughout the country based on their events. And then you can start to say, okay, well, which one of these was around in 1898? because people had to live there. So you can kind of rule out like Prescott, Arizona. Unlikely that they were having NHRA type deals back in 1898.

And you can start to look at stuff like this. The NHRA, New England Nationals, I will skip that one because I've actually been and driven past that location. And I can tell you that they didn't have a water there. So. But yeah, but one here is to go through this in the Summit Racing Equipment, Motorsports Park in Norwalk, Ohio. It would not surprise me if this is it.

This is probably more of a drag strip and less of a circular racetrack, I would think, right? Because the NHRA is drag racing, which is straight ahead, right? As fast as you can possibly go before the car combusts. So, yes. So what's also interesting is I wonder if this is like on the circuit. I mean, if it's been around for 100 years, right? The NHRA is probably coming here every year for the next 100 years as well, right? It's like it's an event.

It has a trophy like they do it every year, which is some really nice kind of baked in certainty, assuming the financials of the NHRA are fine. But I think people will be drag racing for a long time, even if they're drag racing electric cars. So, I mean, I like, like, it's bringing a ton of people to your event. It's raising the profile of your location. You've got reasons to go if just if a drag race isn't going on. I also like that they've done a partnership with Harley Davidson. so they're trying to use the facility for things that is not just pure drag racing. Current owners own it since 1984, right?

I mean, this is, dare I say it is, this thing is Lindy? I mean, it's been around for 100 years. Yeah, it's super interesting. I just pulled up here, the Maple Grove Raceway and Monton, PA. They have this track and all this kind of stuff and the Pennsylvania Dutch classic. It's just an interesting kind of. Exactly. I'm sure you got sponsorship dollars.

This does not look like the one we're talking about. Yeah, you probably got sponsorship dollars from, so this one's got Sonoco that you've got up on the screen, right, on all the boards alongside the raceway. You know, you're selling food. Like now, so I think this is probably, without knowing a lot more about it, this thing is probably stable. It's probably fun, right? It's doing $2.2 million of cash flow a year. There is no world that this is doing $10 million of cash flow a year, I don't think. Right. I mean, the only drawback of this thing is like, this is probably as big as it gets.

So I think I think you bring up the, you know, I'll channel my inner mills. So just pretend I have a beard on. But like, this is definitely one of those EBITAs, not cash flow type situations. You have to look and think through, like, how big is depreciation and the cost of all the maintenance that you're going to have to have in order to run a business like this? And where's the delta between cash flow versus how much depreciation you're going to be doing? Because depreciation is a measure of how much you're having to invest in capital expenditure to keep your equipment going and buy new equipment. And I know if they have a 300 foot tall bill, I'm not an expert in roller coasters,

but if they have a 300-foot-dollar, by the way, do you think you get to write off, do you think you get a bonus depreciation on roller coasters? Maybe. I don't know. That would be sick. Okay. So anyway, I just talked around like 10 dollars. For those of you to know, bonus depreciation is the idea for certain types of equipment that

you buy for a business. You get to depreciate it all very quickly, sometimes as quickly as like one year. And that can be parts of a building that you can buy or that can be like a big piece of equipment, you can depreciate it all in the first year. So even though you'll use it for five years, you get the tax advantage in the first year and you get to write that off your taxes. So all very powerful. But anyway, this idea that EBDA is great in a business like this, 2.1 million. But when you actually see at the end of the year running this business and just keeping up to date with all the cap-ex, how much cash are you going to have in your pocket, it's usually much less. And the heavier

the cap-ex requirements in terms of capital expenditures to keep the business going, the less cash you're going to put into your pocket, which is not good because less cash in your pocket, less trips to, you know, Hawaii. You're exactly right. I mean, I don't know what it costs to keep up a drag strip, right? You know, probably not nothing. So, yes, worth asking what the true cash flow number is here. It is funny.

You look at all these guys that have decided to become serial acquirers. So, you know, permanent equity. you know, the Xavier's business, the enduring ventures. Enduring ventures. Thank you. I'm an investor in their company. Name like the worst investor. Like they, like number one, they'll all list like CapEx Lite.

Like that's, they all have that in common because they don't want to be writing big checks to put in, you know, to buy new, well, in this case, roller coasters. So the other thing that jumps out of me here is they've got 348A. acres, they say they're not using all of it. This is not my area expertise, but you got to wonder, is this the highest and best use of all 348 acres? Or is there an opportunity to carve out 100 of these acres and put a housing development on it? You know, like this is not my expertise. I don't know where this is, but, you know, there's a separate underwriting piece to this deal is underwriting the value of the land. And it is possible that the value of this land dwarfs the value of the

business in the right hands. Oh, I think I found it. They gave it away with the 348 acres. It is the Sebring Entertainment Raceway, I think. Let me see. So I Googled, so here's the trick. I googled I googled things that would be 348 acre raceways and this is what came up and they had a race here that was the 348 or the 68th mobile

12 hours of Seabring. Hopefully this is the right thing. It looks extremely legit on their website. This looks awesome. There's like crowds of people and like racing cars and and you know, boxes and this looks freaking sweet.

I would go to this place. Dude, is a spine-tingling sports car racing on the fame track that originated from a World War II B-17 combat training base. The thousand miles of Sebring is what happens on this thing. So maybe this is it or maybe IMSA found. So wherever Sebring is. Yeah, I don't see it. The only thing I will tell you is I don't see any like roller coasters or anything else on this property.

Yeah. But so it just comes back this idea. Like a lot of times you can figure out what the business is. And you and I have reluctant to try not to do that before we see. sign NDAs, all the stuff, because you get yourself in trouble. That's why we never sign NDAs so we can do what we're doing right now, probably. So, I mean, I got to say, let me hand it to generational equity Mills' favorite broker, right? Very often, very often you will see a business like this that is 100% dependent on its location,

its land, like a whitewater rafting business for sale, but oh, we're not selling the underlying access to the river, right? You can rent it from us forever, right? A lot of times you see this where if you bought this business without the underlying dirt, you know, you would be beholden to the seller forever and they would extract all the value and it would be a terrible deal. And Michael, you always go off about that, right, about how your landlord will extract all your value over time.

They do not seem to have done that here. I am not seeing any claim that they're going to sell you the business while retaining the dirt and the track and the roller coaster and you rent it from them. which commendable, right? Like they're selling you the whole thing. They're selling you the business and the roller coaster in the track. You need to run the business and all the land and everything. Here it is $7.9 million.

Oh, they have a listing price? No, no. This is their sales. Oh, whoa, whoa, whoa, whoa, sorry. They do not have a listing price, right? The sales is $7.9 million, EBIDA of 2.2. So there is no listing price. But still, they do not appear to be trying to separate the two.

Yeah. So there's some stuff to like about this deal. We've talked about it. Some stuff to like about it. Definitely like there's a level of lendingness here. The thing's been around for 124 years and they've managed not to go out of business, which is very good. You have significantly variable costs, right?

So it looks like they said here they have 3 and 40 acres, 19 full-time employees, 400 part-time employees. The 400 part-time is really nice because those just get hired during race time. And if there's no races, you don't pay them. So there's a lot to like about that. But that kind of part-timiness and the seasonality of this has a couple problems. Number one, let's say a hurricane shows up during your race day. Not very good. You've got to make sure you deal with that. And secondarily, that ties in the idea

that your stuff is going to be very seasonal, right? And as an owner of a seasonal business, I can tell you it's much harder than if people like call you every day and give you money. So that would be something you have to make sure you have the appropriate amount of working capital with a deal like this to make sure you can survive in the times when you're not going to be able to make any sales at all. Because guess what? If this is in New Hampshire, Bill, I don't know if you're aware of this, but if it's in New Hampshire, ain't nobody coming to camp out in a tent in February next to your racetrack. But in July, it's pretty darn nice. Yep. Yep, yep. Well, I think that is, it's definitely seasonal. It's given away by the fact

they have 400 part-time employees and 19 full-time employees, right? That's a lot of part-timers, which makes sense, right? Like, the whole region comes in for a race. Like, you got to staff all those concession stands, you got to clean it up, you need security. You need like, you're putting on a vent, right? I'd be curious to know whether those employees are like, you know, actual 1099ers or whether they go to someone like a show pros or like, you know, there are these businesses out there that you can be like, I need 200 people to work security and concession stands, make them appear in a month. And businesses like show pros will do that. So I'm, I would be curious to learn how they staff this thing, whether they've got their rolodecks of just people they call,

year and hope they don't move away or if they've kind of made abstracted that a little bit yeah and you end up with i mean that's the other downside of part-time employees you got to have a model where you're insulated from them because they can ruin your life like the people that sign up to work at a racetrack on july the fourth whenever your races or whatever like there's a significant percentage that we're not showing up sober like that's just the way it's going to be always not driving the cars as long as they're not driving the cars up cool um So I think I've maybe found it. Beach Bend Raceway Park.

So I'll put it here on the screen, Bill. So the thing that gave it away is I actually searched for NHR Raceway founded. And NHRA is the dragstrip. Founded in 1898. Rollercoasters, haunted house, da-da-da. It's in Bowling Green, Kentucky. So they got the pictures here, like exactly what you imagine in a drag strip, kind of when it got started. Yeah.

So where the heck is? bowling green. They've got pictures of the water slide. They're one hour north of National Tennessee and one hour 40 minutes south of Louisville, Kentucky. So it is between National Tennessee and Louisville, Kentucky, which sort of makes sense. This is kind of drag strip racing country. For touch it. Yep. Yeah, for sure, for sure. The amusement park is in operation for Memorial Day to Labor Day while the drag strip season is several months longer. Although the park was closed, according to this article, was closed when I stopped by November. Jones gave me a fascinating tour by way of golf cart. And we sold.

Lilly passed taxied past each corner world right. I usually acquire, sir, have you ever written this one? His answer each and every time was many times. Oh my God, this is the biggest puff piece. I've written my whole life. You get this person to write my biography. I think this is freaking cool. So it is called the beach bend drag strip because it is actually in the bend of a river.

A river goes around it on three sides. If you look at a map, it's actually a seems a pretty cool piece of property. If you want to live in Bowling Green, Kentucky, and you're trying to buy a business with real estate, then you could probably carve some of that real estate out. And I will tell you also, this place is not too far from downtown Bowling Green, just based on the map. So that is, I would think there could be significant real estate value here. Yeah, it's 15 minutes from downtown Bowling Green, including Western Kentucky University, which is, you know, and all this stuff. So I don't hate it. I mean, especially if you know how to do real estate development.

I think there's lots of cool opportunities with something like this. You know, and our buddy that bought Flying Magazine, and I'm having one of those Gurdly Senior moments days from Blanket on his name. I could totally see it in my brain. But he's started to put together, you know, a whole community for the flying community or for the flying officinados to buy houses and then fly into these places in in in in Tennessee. And I really wonder if he's if somebody has done the same thing for people that are

really into drag stripping drag strip racing and that sort of thing. I bet you there is a community of very wealthy 50 to 60 year olds who would love to have a place where they just run their cars all day and you know, get get totally into drag racing. So yeah, I mean, such a cool opportunity. And then, you know, I think you make a great point, Bill, like being in a bend of the river like this. and I'll pull it up here on the map. Like, this is a, you're buying a one-of-a-kind piece of property. Like, here in this, in this beach bend, literally, you know, a bend of this river, right here in

Bowling Green, like, pretty unique type deal. And it's right next to the National Corvette Museum, by the way, Bill, since you're a corvette officianto. I'm not, actually. Yeah, Corvettes, I mean, unfortunately, like, Corvettes at this point in life for me are, like, just a symbol that you're old. You know, it's like, no, no, I'm not. I'm not that like, I don't want to be a young baby boomer.

I want to be like a slightly older Gen X. If you give up and you drive a Corvette, that's precisely what it is, even though they look super cool because they look like Lambos. Yeah. I mean, you don't see any 30-year-olds buying Corvettes, but maybe they should. I don't know. Maybe they're great. Maybe they're great.

Cool. All right. So any other insights on this one? This seems like, you know, look, if you want to go live this life. And I think that's what you can tell from this article that I pulled up, like, this has to be a buyer that you want to go spend your life living in Bowling Green Kentucky and you love amusement and people and drag racing. And if you think that that's, if that sounds like the most fun thing you could possibly do for the rest of your life, you're probably a good buyer for this.

If that doesn't sound like a ton of fun and you're considering moving from Brooklyn to do this, I would recommend against it. All right. Let me challenge you. This thing's got $2.2 million of EBITDA. you could hire a $250,000 a year general manager who fits everything you just described, right, and wants to do all that, wants to be the highest paid person in Bulling Green Kentucky, and loves drag racing and wants to babysit this thing for you. And you'd be absolutely to your owner to keep living in Brooklyn. What do you think? Yeah. I mean, I think it's the question I would have is relative to other opportunities. Do you want to do this or that?

you know, like, yeah, that would be my only question. And maybe it comes down to purchase price. I was talking to somebody earlier today and I said, you know what? It's always easy to make money on deals if you do one thing. And I said what? I said, you got to buy it at the right price. That's that that work. So maybe that comes down to it.

Look, if you told me if this guy wants to sell for the price of the land and the assets and we set that up, like that sounds pretty good. So last thing I'll say on this deal, and I think this is the stickiest wicket on this whole deal. which is that it does include so much real estate, right? You have a huge, you have almost 400 acres of real estate, right, relatively close to a town, you know, I don't want to disparage Bowling Green, right? But it's something. It's not like in the middle of nowhere.

And like that's worth something, right? There's major value in this 350 acres or so, potentially more value than is in the entire business that's on top of it. I mean, I don't know this place, but a real estate developer might come in here, and go, I can put $50 million worth of homes, you know, on this land. Or, you know, I'm talking out my ass. I don't know anything about real estate. But it's going to be very hard, I think, to come to a purchase price because you've got

a huge amount of value in the land that is going to be valuable to one buyer. And then you've got some value here in the business that is valuable maybe to a different buyer. So you almost might need some deal where you can say, how much acreage does this really need? You know, you've got to be real estate savvy, but you're, you've also got to want to run a drag strip. So, like, finding the right buyer here and agreeing on a price and a financing structure where at least half the value is going to be real estate, which is going to be financed very

differently than the operating business cash flow, this is going to be a tricky deal structure, I would think. Yeah. Well, and I think that's where this also is where you end up with, you know, a down the, down the fairway Main Street banker wanting to do this deal, right? because they are super comfortable underwriting real estate type stuff. Then they can combine that with the cash flow, you know,

aspects of the business itself and cross collateralize those. You know, I love that aspect of it. Every banker I've ever talked to and I've tried to do some deals that look like this, loves this type stuff because they're like, fixed assets, proven cash flow model. Like, let's go. Like I'm, you know, and it's been around since 1898.

And it turns out bank loan committees love it when something has survived for 124 years because they know there's a pretty good chance that's going to make it on another 124 years. That's right. I mean, that's why I'm interested in it too. All right. Well, let me know what you find out when you sign the NDA. If you're going to put together a syndicate on this, maybe we need to start.

Maybe this show would get much more interesting bill if we raised a rolling fund and just started to do a deals. And here's a deal we are doing. Yeah. I think the SEC would call us like you can't be raising money on a podcast, can you? General solicitation? No, you totally can. Yeah, you totally can.

You just have to... Oh, you can now. They change the rules. You can... So they've made it easier. By the way, some lawyer is going to come and be like, straight to jail. Straight to jail, currently. But no, no.

So as long as you're doing like the 506C3, like accredited or... And you go through reasonable efforts to verify that, like, you can talk publicly about deals. Like, people do it all the time. You just have to be very, very careful. about who you take money from and make sure they're either accredited or whatever the other one is. There's preferred. I'm told this one of those days where I can't remember any words. But there's another type of investor that like they basically it's like, okay, we consider you smart enough to manage your own money and you can do that. So no, we could for, I mean, you see it all the time where we're like, I mean, there's a guy that Packy M guy like on Twitter right now.

He's like, I'm raising a fund. Who wants to give me money? Public solicitation is fine. They just have to only be accredited. All right. If you want to invest in Acquisitions Anonymous Fund to call us. we'll do it. If we raise $100 million, we'll do it. We're taking, we're taking commitments. Let me ask the, I ask the girly question to everything, like every idea, okay, who's going to do all the work? So we're going to figure out. Implicit is not me when Michael says that. If we got commitments, we could, we could definitely like pay some recent MBA grad who wanted to become a private equity baby investor and have them do the fund.

management and we'd just be the investment committee and then talk about the deals on the web or the podcast. That totally works. Maybe that would make this whole thing much more interesting. Investment committee sounds good. I'm down for that. Oh, investment committee is great. You just come in and shoot holes in people's deals. That's what we do every week, Michael. We're doing it for free right now. I mean, actually, how cool would that be, though? That's the podcast. You just hit record on the investment committee meeting. Yeah, maybe we take this to like, we take this podcast to like 10,000. Take it to 100.

Yeah, let's go. To the moon. To the moon, as a kid's say. All right. We just got to find somebody to be doing all the work. If you'd like to do all the work or give us $100 million, you could reach me at Michael at crazyideas.com. Dot org.

Not net. But really just on Twitter. DMs are open and please, yeah, what it is. DM me $100 million. I will reply. I promise. By the way, you and I are like, this is great. throw an eyes around.

And then Mirko, who is our producer's face, is like, I figured it. There's so serious. I love you, Mirko. You're like, we can make money doing this? I guess we can't. Okay, let's go. We could. All right.

We should totally talk about this. I think it would make the podcast like super interesting. If there was real money at stake, that's true. You might have to release it on a lag, though, or you would tip your seller on everything that you were thinking about buying from him, pros and cons. Or we tell them things on the podcast that would help us through the negotiation. Be like the best negotiation. Oh, yeah.

It's like the double cross. It's like you're just, it's an audience of one podcast essentially. Maybe if they beg us, we'll put in an offer. We'll see. Right. All right, man. Super cool. All right.

Let's wrap it up. That does it for another episode. If you guys put an LLI, we'd love to hear about the drag strip you bought. I will come to a race. Sounds freaking cool. So we will see you next week.