🆕 Fencing Company Making $465k! 💰

Welcome Back to The Corporate Pivot!

Tired of attending meetings that could have been an email? Yeah, we’ve all been there. But when you’re running your own business, you get to skip the pointless meetings and jump straight to getting things done—no agenda required. That’s exactly why we created The Corporate Pivot: to help you break free from the 9-5 grind and take control of your future. Whether it’s business buying tips, insights, or the tools you need to succeed, we’re here to make your pivot to ownership as smooth as possible.

Confusing Corporate Saying of the Day:

Move the goal posts = Change the goal to something a little different. It can be either more attainable (widen the posts) or just completely move the posts, like moving your life goal from getting promoted to buying a business!

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: Tyler and I are entering negotiations for an investment in a business. Structuring deals is always interesting because it has to work for both parties. It’s a bit of a cat-and-mouse game—after the first offer is made, it's time for a counter. The challenge is framing it in a way that doesn’t come across as offensive. There’s definitely an art to that. One thing I’ve learned is that it’s better to walk away from a deal than to cave into demands you’re not fully on board with.

On another note, The Corporate Pivot is ramping up our content on Instagram (Cough Cough give us a follow), so stay tuned! We’re aiming to make it more entertaining and educational than anything else out there. And if it’s not, you can take it up with Vinny on Discord! 😂 

📚 Cool Business of the Week: Local Disaster Relief Company

There’s a guy near me who has 30+ trucks sitting outside with mechanical arms in the bed. At first, they looked like dump trucks, so I did some digging. Turns out, they’re disaster relief trucks. This guy’s company makes money through contracts with the county, stepping in when a storm or disaster hits to handle cleanup. What’s cool is how scalable this business is: with a few trucks, you can secure contracts for steady work, and as demand increases, so does your ability to grow the fleet. The county needs the job done fast, and those trucks with mechanical arms make it happen. Beyond the contracts, you can add emergency response fees and partner for ongoing maintenance, making this more than just a cleanup crew—it's a highly profitable, scalable business.

When it comes to the numbers, these companies can pull in significant revenue. A fleet like his could easily generate millions in annual revenue, especially when major storms hit. Profit margins for disaster relief companies typically range between 10-20%, depending on how efficiently the business is run and the size of the contracts. Add in emergency fees, and those margins can increase, making this not just a smart business model but an incredibly lucrative one as well.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: As you know, we are currently talking with an owner over a possible minority investment in an existing company. Last week, the owner sent us over his initial proposal, and it wasn’t even close to what we had in mind (both in terms of structure, and return on our investment). I had the pleasure of being the one to call the owner and tell him this was a non-starter for us. Jokes aside, it’s important to be somewhere in the same stratosphere with a seller/owner to avoid wasting time and money during the diligence phase. In this case, we think we can get the owner on board, and are now moving forward with further financial diligence. 

💰 Deals < $500k

Business Name: Design and Mail Marketing Company
Revenue: $1,365,106
Asking Price: $440,000
Profit: $345,743 (Profit Multiple = 1.27x)
Location: Omaha, Nebraska
Established: 1991

✅ Pros:

• Strong Client Base: Over 300 clients, many of whom have been with the company for more than 10 years.

• Skilled Workforce: An experienced team of 18 employees, including managers and production staff.

⚠️ Cons:

• Limited Online Presence: The company has room for growth in digital marketing and online services, which are currently underutilized.

📈 Growth Opportunities:

• Expand Online Services: Leverage existing staff skills to increase online marketing and digital services.

• Increase Sales Staff: Hiring additional sales representatives could help boost revenue by expanding market reach.

💰💰 Deals $500k - $2m

Business Name: Established Fencing Company
Revenue: $1,303,769
Asking Price: $800,000
Profit: $465,169 (Profit Multiple = 1.72x)
Location: Galveston County, Texas
Established: 1979

✅ Pros:

• Diversified Service Offering: The business includes both fencing services and a trophy shop, maximizing use of space and resources.

• Strong Reputation: Well-known in the community with a strong word-of-mouth client base.

⚠️ Cons:

• Geographical Limitation: The business currently operates mainly in Galveston and South Harris County, with limited expansion into surrounding areas.

📈 Growth Opportunities:

• Geographic Expansion: Expand into the broader Houston area to tap into new markets.

• Digital Marketing: Enhance online presence through SEO and social media to attract more customers.

💰💰💰Deals $2m-$10m

Business Name: B2B Manufacturing and Installation Company
Revenue: $3,000,000
Asking Price: $2,400,000
Profit: $891,000 (Profit Multiple = 2.69x)
Location: Alaska
Established: 1990s

✅ Pros:

• High Profit Margins: Strong earnings with a profit multiple indicating a well-managed and profitable business.

• Long-Term Stability: Established for over 30 years with a solid reputation and consistent customer base.

⚠️ Cons:

• Owner Dependency: The business may rely heavily on the current owner's expertise and relationships, which could pose challenges during the transition.

📈 Growth Opportunities:

• Real Estate Acquisition: Potential to purchase the real estate, increasing control over operational costs.

• Expand Product Lines: Introducing new products could attract a broader client base and increase revenue.

The Lean Startup: Ch. 6 Part 2

Today we are going to continue our discussion about minimum viable products by giving two examples of some unusual MVPs, but still valuable.

1. The Video MVP used by Dropbox

2. The Concierge MVP used by Food on the Table (FoT)

If you don’t know what Dropbox is just google it, but just in case you can’t figure out google I’ll explain. Dropbox is an easy-to-use file-sharing tool. Install the app, drag anything into the Dropbox folder, and it will be automatically loaded into the Dropbox service and then instantly replicated across all computers and devices connected to your account.

Their biggest competitive advantage is that their product works in an incredibly seamless way that their competitors struggle to emulate. In parallel with their product development efforts, they wanted to get feedback from their customers about what really mattered to them. Their leap-of-faith question:

“If we can provide a superior customer experience will people give our product a try?”

Dropbox believed that file synchronization was a problem that most people didn’t know they had, and once you’ve used their solution it was crazy to think…

Read more at corppivot.com!

Hope you enjoy this week's insights and happy deal hunting! Remember, if you find these updates helpful, share this newsletter with a friend!

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