Lessons of a lost towing deal

He wanted $1.7 million... I offered $2.0 million over 10 years seller financed(he did not call me crazy)

Ok

Let's go back to four months ago when I made a list of all 1,328 towing companies in California and called their owners to see if they were willing to sell.(Towing companies in California have proven to be hard to find for sale.)

While calling, I got a lot of "Fuck YOU, WE ARE NOT FOR SALE!" some mentioned they had not thought about it politely, and in some others, I could not pass the gatekeeper and get to the owner.

After about a month, a broker connected me with an off-market deal based in Fresno, California ( 4 hours away from where I am based).

I called the owner, we spoke, and down the road, we met in person for me to tour his towing yard and learn more about the business.

The owner is really freindly has owned the business for almost 25 years and ready to retire... he even owns the land the business sits on and goes on lake cabin trips 3 days a week.. What a lovely life

Okay back to the deal ... here are some details

Purchase Price:$1,700,000- EBIDTA: $500,000 Trucks: 8 trucks 6 drivers,2 dispatchers Private property,rotation ,etc work but refuses to do AAA or motor club work Rent: $7000 NNN

So it kind off has structure but not yet there to be really hands off

After we met in person I Offered

$2,000,000 ($300,000 higher than his price) but with a caveat he has to agree to 10 years of seller financing at 4% rate.

He refused but did not call me crazy and came back with an offer.. we negotiated for the next 2 month back and forth on offers etc

Eventually the deal fell through and owner kindoff disappeared (he was worried about the huge tax paycheck he will have to pay)

lots of lessons learned some are:

1. don't get attached to a deal
2. continue your search while in DD
3. why not shoot for the moon on your first offer
4. how to do financial modeling..
5. Find a deal closer to where you live

now what you ask? onto the next one

So if you have/know off a company in these sectors in southern california: towing companies, medical transportation, home services, collision centers, pest control, hood cleaning, and niche manufacturing for SALE please reach out to me( i might be able to offer $5,000 if you help me find the right deal and we close)