David Borom

SMB Owner/Operator/Investor | Just living vicariously through myself.

[David Borom @DavidBorom]

@PEoperator Owner’s Porsche racing team. Several cars. All maintenance. Full crew.

[David Borom @DavidBorom]

@SMB_Attorney LOI

[David Borom @DavidBorom]

@RandBusiness Get a quote from a junk yard, stating how much they would pay to junk the vehicles. Usually this is enough support for the bank to release the lien. You do have to pay that amount towards the loan, but it is far lower than FMV.

[David Borom @DavidBorom]

@guessworkinvest Could not agree more. While I have an amazing team that came with the business and we have done well, there have been many occasions (battling the very real post-acquisition J curve, COVID, or scaling in general) where I’ve thought, “This would be so much simpler with a partner.”

[David Borom @DavidBorom]

@guessworkinvest Agreed! My lender thought the deal was great at/pre close. 6 months later, all of a sudden, same business; same margins, too risky to get a LOC through committee.

[David Borom @DavidBorom]

@markbrooks You walk into a business and realize that they are way over staffed. The employees are already afraid that big bad PE will eliminate their jobs. How do you tackle this gracefully? What jobs do you eliminate first?

[David Borom @DavidBorom]

@RegZeller And this was after years of successfully running my first.

[David Borom @DavidBorom]

@RegZeller Oh yeah I bought my second last year. 100% agreed and learned the hard way too 😂. I laugh now but can also totally to your fetal position tweets.

[David Borom @DavidBorom]

@bailey_gay Actually yes.

[David Borom @DavidBorom]

@IsaacWaitman I lived in downtown Chicago. Not a mall but great shopping was a few minutes away. It was great. If I was in my mid twenties, I’d do it again. It would probably still be a no brainer for my wife.

[David Borom @DavidBorom]

@bentigg This was a great strategy for us in 2020/2021. However, that data is at least 2-3 years old now. We are finding that companies look very different today than they did back then. Still probably good for compiling companies in a specific industry though.

[David Borom @DavidBorom]

@Sam_Rosati @SBA_Matthias Taxable. Did it on existing business so not sure about second question.

[David Borom @DavidBorom]

@SBA_Ray If there is little to no equity in the first business, at the time of the second acquisition, can you still do the second acquisition at 100% or will you have to inject cash?

[David Borom @DavidBorom]

@ClintFiore Usually B, unless the seller despises the local competition. That’s how I was able to win my first deal. My offer was 15% lower with a far more complicated structure but seller was skeptical of all the regional competition.

[David Borom @DavidBorom]

@WilsonCompanies General Manager

[David Borom @DavidBorom]

@TonyLayneLFarms My guess would be about half that.

Conglomerates (Holdcos) were all the rage in the 70s and 80s. There is a reason why most of those were acquired and sold off in pieces.

[Jarrid Tingle @jarridvtingle]

As I get back into in-person networking, I’m taking any negative interactions less personally.

Some people are just awkward, distracted or focused on their to-do list.

Myself included.

[David Borom @DavidBorom]

@SamtLeslie Honestly, no. I’d much rather spend all my time with my head down, building the business but I spend a fair amount of time managing investors and their expectations.

[David Borom @DavidBorom]

@guessworkinvest SBA/Bank has unlimited guarantee. They have claim on all business assets as well as whatever personal assets they want. Seller note guarantee is limited to the collateral it is secured by. In my case, it’s a piece of personal real estate (which is among the assets the bank wanted