#232: The Business Acquisition Playbook: Buying Cash Flow the Right Way - Michael Byars

And, and I wanna, I wanna go from that point because, you know, going from buying the restaurant in the beginning, uh, that's something that, uh, I've always heard if, you know, you're looking into buying businesses, restaurants and clubs are the ones you wanna stay away from.

Does that kind of-

Yes

... fall in line?

Yeah.

Restaurant business is, uh, 24 hours a day, eight days a week.

Oh, man.

It's, uh, it's brutal, man.

Everybody, you know, it's, it's brutal.

The margins are thin.

You gotta do big volume.

And, you know, it's just, it, it requires a ton of your time.

You know, people wanna see you there.

Yeah.

So, you know, buying those first businesses, when you started acquiring the, you know, the HVAC company, the plumbing company, um, how did...

And everything was starting to be vertically integrated, and you said that, you know, the same companies who are doing 8 to 10 million have the same problems as the $1 million companies, you know, what, what are the specific problems that they're having?

What I found is a lot of times the larger the company is, the better the infrastructure is.

But, I mean, for, for me, you know, I like to buy stuff one to about 7 million, and a, a lot of times they're lacking on marketing, they're lacking on infrastructure, and they're l- they're lacking on, you know, just day-to-day operations.

They're good at whatever the thing is, but that's all, you know, that's all they concentrate on.

They're not...

A lot of times they're people that are great at whatever the task is or whatever the, the business is, but they're not super good at, you know, back office stuff or business type stuff.

And that's where I can really come in and add a ton of value immediately, you know, building out automations, building out technology to help with, with any of that stuff.

Yeah.

So being able to, you know, build on that, when did you realize in the journey be- Uh, because you said, you know, you bought the restaurant, you bought the nightclub, then you started rolling it into the single-family rentals.

You know, why, why move away from, um, what you were doing to go into real estate before you started buying the other companies?

And, and I wanna, I wanna go from that point because, you know, going from buying the restaurant in the beginning, uh, that's something that, uh, I've always heard if, you know, you're looking into buying businesses, restaurants and clubs are the ones you wanna stay away from.

Does that kind of-

Yes

... fall in line?

Yeah.

Restaurant business is, uh, 24 hours a day, eight days a week.

Oh, man.

It's, uh, it's brutal, man.

Everybody, you know, it's, it's brutal.

The margins are thin.

You gotta do big volume.

And, you know, it's just, it, it requires a ton of your time.

You know, people wanna see you there.

Yeah.

So, you know, buying those first businesses, when you started acquiring the, you know, the HVAC company, the plumbing company, um, how did...

And everything was starting to be vertically integrated, and you said that, you know, the same companies who are doing 8 to 10 million have the same problems as the $1 million companies, you know, what, what are the specific problems that they're having?

What I found is a lot of times the larger the company is, the better the infrastructure is.

But, I mean, for, for me, you know, I like to buy stuff one to about 7 million, and a, a lot of times they're lacking on marketing, they're lacking on infrastructure, and they're l- they're lacking on, you know, just day-to-day operations.

They're good at whatever the thing is, but that's all, you know, that's all they concentrate on.

They're not...

A lot of times they're people that are great at whatever the task is or whatever the, the business is, but they're not super good at, you know, back office stuff or business type stuff.

And that's where I can really come in and add a ton of value immediately, you know, building out automations, building out technology to help with, with any of that stuff.

Yeah.

So being able to, you know, build on that, when did you realize in the journey be- Uh, because you said, you know, you bought the restaurant, you bought the nightclub, then you started rolling it into the single-family rentals.

You know, why, why move away from, um, what you were doing to go into real estate before you started buying the other companies?