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25 Acquisitions & Private Equity Investor Seeking 60/40 Partners: Robert Nance

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In this video we delve into the world of private equity investment with Robert, the CEO of an investment group actively acquiring small businesses. Robert's first acquisition was a Mexican Meat Distributor bundled with a real estate purchase. Learn how and why Robert created his unique Floors & Ceilings Contract, which was designed to address hidden liabilities, and his strategies for mitigating such risks.

Learn about the importance of the balance sheet, Robert's criteria for selecting businesses over a decade old, and his core competencies in B2B Wholesale Companies. Robert talks about what he looks for in sellers, his approach to asset valuation, and the dynamics of PE funds.

Robert talks about on-market versus off-market deals, his rational approach to creating offers, and the intricacies of LOIs and partnership dynamics.


00:45 His 1st Acquisition Mexican Meat Distributor came with a Real Estate Buy

05:29 Targeting Specific Industries - with low multiples

07:01 What is he doing now

07:22 Process of learning, creating the contract, and never using SBA

08:27 Hidden liabilities - Why he created the Floors & Ceilings Contract

13:00 The LOI and Due Diligence time line

14:58 Click close clarification

15:38 How he mitigated the hidden liabilities: R&W and Owner Financing

18:30 The cap stack & skeletons are in the building

19:35 Seller Financing Tax benefits & Stock Purchase vs Asset

22:44 Why the Balance Sheet is more important

28:03 B2B Wholesale Companies - Core Competencies

29:38 The 1st thing he looks for in a seller...

32:11 What about mfg. - what about FF&E - why he does not pay twice

33:57 Why he only buys 10+ year old companies

37:25 The PE Fund - High Net Worth Individuals

40:40 ON market or OFF market deals?

41:30 Robert's Deal Criteria Financial Numbers?

42:29 Creating the "offer" from the "padded SDE" we win because its Rational

48:21 The LOI and What happens next & How to Subtract Inventory from Price

52:44 What to expect as 60/40 partner

54:20 What is the "Absenteeism Scale"

55:20 What he really needs: people that can manage people

56:27 Buy and Hold or turn it in 5 years?

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