Comfortable Concentration for a $800k SDE Business | Phil Koller Interview

Today's story is a study in not judging a book by its cover. Phil Koller bought Roman Enterprises, an automotive paint distribution business. Now, Roman had about 7 customers. It had essentially a single supplier. And it had one — yes, just one — employee. Undeterred, Phil looked closely at each of these features and more, and decided that he could accept and/or mitigate the risk. And there was lots to love about Roman Enterprises. I already mentioned that single employee, a feature that lives in both the pro and con columns. There was also the $800k of SDE. A reasonable valuation. Sticky relationships. And business-buyer fit. Running this business well is all about supply chain and inventory management, and Phil had deep experience doing just that. Here he is, Phil Koller, owner of Roman Enterprises.

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Chapters:
00:00 Phil’s background
04:50 'Rich Dad Poor Dad' sparks interest in cash-flowing assets
06:53 Learning about buying cash-flowing businesses
09:18 Pregnancy delays timing of search
13:03 Resuming search after second child
18:33 Discovering Roman Enterprises
22:15 Roman’s automotive paint distribution model
36:20 Deal structure – SBA, seller note & risk mitigation
42:32 Post-acquisition transition & solo operations
01:11:17 Grandfather’s Holocaust survival & motivation

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ABOUT Acquiring Minds
Acquiring Minds is a podcast about buying businesses. Acquiring an existing business is an awesome opportunity for many entrepreneurs, and host Will Smith talks to the people who do it. New episodes 2x per week.

Credits:
Edited by Anton Rohozov
Produced by Pam Cameron

#business #acquisitions #buyingbusiness