246 - The Allure of Buying a Marketplace Business
One type of business I bet you haven't considered buying: A dental savings plan. Zach Smith bought a business that has paying members, the consumers, on one side. On the other are the dentists who agree to serve its members at a discounted rate. Zach saw it as fundamentally a marketplace business, which he knew something about after having worked at Uber for 7 years. Good business-buyer fit. Zach also saw downside protection. The business is actually on the decline, so a turnaround. But listen for Zach's risk analysis, where he concludes that even if he's unable to arrest the decline, he'll at the very least get his money back. A conclusion that gave him the comfort necessary to buy the 30-year-old business. His analysis also showed that if he could get the business growing again, even by a little, he stood to do quite well. How's it going? Listen to find out. Here's Zach Smith, owner of American Dental Care Partners.