Acquisitions Anonymous - #1 for business buying, selling and operating
Business:Entrepreneurship
$3M Carve Out Deal? - Acquisitions Anonymous 281
In this episode of Acquisitions Anonymous, Michael, Mills and Bill discuss an acquisition opportunity known as "Project Castle." The company being divested, is a manufacturing division with $29.6 million in revenue and $3.5 million in EBITDA. They specialize in contract manufacturing for various industries. The parent company is relocating its operations. The division has experienced leadership and a diverse customer base. However, there are challenges with replacing certain functions like HR and IT. The hosts explore potential buyer profiles, including private equity firms, strategic buyers, or even executives from within the division. They also discuss the complexities of carve-out deals and the importance of understanding hidden costs and dependencies. Despite these considerations, the hosts find the opportunity promising due to Castle's stable revenue and growth potential.
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