MY FIRST MILLION · EXTRACTED
How I Bought A Multi-Million Dollar Egg Carton Business For $0
6 tactics from a serial acquirer who buys boring businesses with no money down — and turns them into cash machines.
Preview · 3 of 6 tactics
"I didn't have any money. So I had to figure out how to buy businesses using their own cash flow. Turns out that's how most acquisitions actually work."
The guest has acquired multiple small businesses — including a packaging company — using seller financing, earnouts, and creative deal structures. He had no outside capital. He walks Sam and Shaan through his exact playbook for finding, underwriting, and closing deals on businesses most buyers overlook.
Buy Boring. Boring Businesses Have No Competition.
He specifically looks for businesses that are impossible to brag about at dinner. Egg cartons. HVAC. Commercial cleaning. These businesses have almost no buyer competition. Everyone wants the SaaS company or the trendy brand. Nobody wants the company that makes packaging for grocery stores. That means the seller is negotiating with one buyer instead of ten, and the deal terms get dramatically better. 'I can't compete with PE firms for flashy businesses. I can absolutely compete for boring ones.'
THE PLAY
Search BizBuySell and broker listings for the most unglamorous businesses you can find: waste management, commercial laundry, distribution, industrial supply. Boring = less competition = better terms.
Seller Financing Is the Deal Structure Most Buyers Don't Know to Ask For
He bought the egg carton business with seller financing: the seller carried most of the purchase price, paid back from the business's own cash flow over five years. Zero bank. Zero outside investors. He put in a small down payment (negotiated down from the seller's initial ask) and the business paid for itself. Most buyers never ask because they assume it's not possible. Most sellers will accept it if you ask clearly and explain the structure.
THE PLAY
On any deal, ask: 'Would you be open to carrying part of the purchase price, paid back from the business's cash flow?' Frame it as reducing their risk (they know this business). Many sellers will say yes if asked correctly.
The SDE Multiple Is Your Only Number
He ignores revenue. He ignores EBITDA until he adjusts it. The number he cares about is Seller's Discretionary Earnings — the cash the owner actually takes out of the business after paying for everything including themselves. Small businesses (under $5M) typically trade at 2-4x SDE. He targets businesses at 2x or below. That means he's buying $500K of annual owner income for $1M. That math works immediately.
THE PLAY
Ask for the SDE (sometimes called 'owner's benefit') on any business you're evaluating. Divide the asking price by SDE. Target under 3x. Under 2.5x is a strong buy if the business is stable.
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3 more tactics + Action Plan
TACTIC 04
The Owner Is the Business — Until It Isn't
TACTIC 05
The First 90 Days: Don't Change Anything
TACTIC 06
Small Improvements in Boring Businesses Print Money
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MY FIRST MILLION · EXTRACTED BY PODEX