🆕 Military Contracting Business Making $1.26m 📈

Welcome Back to The Corporate Pivot!

Your no-nonsense newsletter on making the jump from Corporate America to business acquisition. We keep it simple and straightforward—follow along as we practice what we preach, featuring active buyers sharing their journey and experienced buyers discussing the realities of day-to-day business ownership.

Confusing Corporate Saying of the Day:

Let’s get a Tiger Team put together = Group of experts brainstorming… I mean come on, we’re just making stuff up at this point!

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

📈 Success of the week: Pool Resurfacing Company financials are coming through and I think this could be a winner. Stay tuned! 👀

📚 Lessons Learned: Automating the boring stuff!

Discovering Make.com has been a total game-changer for automating business leads and simplifying the acquisition process. It's like having a tireless personal assistant who not only finds businesses that fit your criteria but also pings you the moment they appear. No more endless scrolling or missed opportunities! And get this—it even drafts those initial outreach emails for you, like having a witty ghostwriter at your fingertips. Once you've got a potential lead, Make.com seamlessly updates your CRM (Customer Relationship Management system, think of it as a phonebook to keep track of clients/leads).

Don't get me wrong, there's a bit of a learning curve to setting it up, but I'm diving in headfirst so we can all benefit. It's all about making the process of buying profitable businesses easier, and I'm excited to share these tools with you. And I can't imagine what this can do once I actually buy a business and start automating a lot of the tasks. The real magic? Running the numbers on potential acquisitions. Usually, this part's a chore, but now, it's like having a financial wizard in your pocket. It automatically crunches all the data, giving you key metrics without breaking a sweat. And hey, if you’re as amazed as I am and want to geek out over this stuff, join our Discord community—it's the place to share tips, tricks, and all the excitement about the next big thing.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Great news. My horizontal expansion was completed yesterday. We acquired more routes in our centralized location (and got rid of routes that were outside of our range and killing our efficiency). Now the tough part begins. Now we have to integrate the new routes into our system, and ensure that they stay with us. You of course always strive to provide elite level service, but with new customers, especially in service based businesses, you may need to spend additional time onboarding them to show a high level of service from the jump.

💰 Deals < $500k

Business Name: Engineering Thermal Test Equipment
Revenue: $1,000,000
Asking Price: $499,999
Profit: $390,000 (Profit Multiple = 1.28x)
Location: San Diego, California
Established: 2010

✅ Pros:

• Established Clientele: Major companies such as Curtis-Wright, Northrup Grumman, and Space X are among the clients, indicating a strong market presence.

• Low Competition: With only two competitors, the business enjoys a niche market with significant demand, especially in medical and aerospace sectors.

⚠️ Cons:

• Owner-Dependent: The current owner is the lead engineer, and their departure could impact operations, despite a six-month transition period.

📈 Growth Opportunities:

• Expand Product Range: There is potential to develop new thermal testing equipment for emerging markets, such as consumer electronics.

• Increase Marketing Efforts: Investing in digital marketing could attract more clients in untapped industries like automotive and renewable energy.

💰💰 Deals $500k - $2m

Business Name: Metro-Atlanta Deck Installation Company
Revenue: $1,749,084
Asking Price: $880,000
Profit: $859,743 (Profit Multiple = 1.02x)
Location: Carroll Co., Georgia
Established: 2019

✅ Pros:

• Proven Business Model: The company has thrived even during economic downturns, demonstrating resilience and market fit.

• Diverse Service Offering: From decks to sunrooms and under-deck conversions, the business provides a range of services that cater to various customer needs.

⚠️ Cons:

• High Dependence on Local Market: The business's growth may be limited by the regional demand in the Metro-Atlanta area.

📈Growth Opportunities:

• Geographic Expansion: Expanding into neighboring states could open up new markets and increase revenue.

• Online Presence: Enhancing the website and digital marketing could attract more customers, especially those looking for transparent pricing and high-quality services.

💰💰💰Deals $2m-$10m

Business Name: Military Contractor in Software, Communications & Cybersecurity
Revenue: $4,879,289
Asking Price: $2,650,000
Profit: $1,262,223 (Profit Multiple = 2.10x)
Location: California
Established: 1997

✅ Pros:

• Strong Government Contracts: The company has a well-established relationship with DoD and intelligence agencies, providing a stable revenue stream.

• Specialized Expertise: Known for rapid engineering of hardware and software for unmanned systems, setting them apart from competitors.

⚠️ Cons:

• Security Clearance Requirements: The need for security clearances for employees can limit the talent pool and slow down recruitment.

📈Growth Opportunities:

• Product Innovation: Developing new security hardware for emerging unmanned systems could open up significant new revenue streams.

• Contract Expansion: Leveraging established DoD relationships to secure more contracts in cybersecurity and cryptographic solutions.

The Lean Startup: Ch. 4 Part 2

Hewlett-Packard (HP) is the basis of today’s post. No we aren’t talking about printers, although I did hear that you thought it’d be funny to photocopy your butt on the company scanner… you were right, thats hilarious.

We are talking about Caroline Barlerin, and unlike you photocopy heathens, she is looking to get more of HP’s employees to take advantage of the company’s volunteering policy. She’s trying to find a way to empower the employees at HP to volunteer. HP has corporate guidelines that encourage each employee to spend up to four hours a month of company time on volunteering efforts to his/her community. Caroline's priority was to encourage volunteering, especially those types that would leverage the skills that the employee uses daily to help the community, i.e a designer could help a nonprofit with a new website design. Caroline realized that most employees were unaware that this volunteering policy existed and only a fraction took advantage of it. 

“Barlerin’s vision is to take the hundred of thousands of employees in the company and transform them into a force for social good… It doesn’t look like a startup by the conventional definition

Read more at corppivot.com/learn!

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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