Buying a Manufacturer for Just the Value of Assets

Tyler Deike bought a small manufacturer for the cost of property & equipment, making the business itself almost free.

Key points from Tyler's acquisition:

• Blackhawk Fiberwerx was doing $500k in sales with $100k in profit
• Seller was a retiring and overwhelmed 80-year-old
• Tyler couldn't due-diligence the deal to death — had to "cross fingers and dive in"
• Huge margin of safety. Business was selling for the combined value of its assets, so if business collapsed Tyler could recoup loan by selling assets.
• SBA wouldn't make a loan without soil testing the land, so Tyler got a loan from a small regional bank

Reach Tyler Deike:

• LinkedIn
• Tyler's acquisition, Blackhawk Fiberwerx

Official episode page & full show notes at AcquiringMinds.co:

• Buying a Manufacturer for Just the Value of Assets