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It was an elevator company for high-end residential homes. This company has been in business for over 100+ years.
Because the business had been for sale for a long time, my friend Jeffrey got a great deal.
The business was generating $400k in profit per year.
He offered to pay $2 Million (not cheap), but with a lot of structure on the deal.
He got a $600k seller note to be paid over 10 years. Principal payments on the seller note only started two years after the acquisition.
He got a $1.4 Million loan from the SBA (paid over 10 years, at a floating interest rate).
And to buy this business my friend Jeffrey put up $200k. That’s a lot of money but he got a pretty good deal because here’s what happened next.
Jeffrey took over the business and implemented a CRM software to track his customers. He hired a few more technicians, and he invested in local SEO.
The numbr of leads started pouring in for his business.
Elevator repair is a good business. It can run at a 40-50% gross margin.
Read the rest of the Sieva’s Business Academy article here.