Acquiring Minds✓ Verified in SBA records

Finding A Great Business In Cow Country

with Cody A.G. · Sierra Dairy Laboratory

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Sierra Dairy Laboratory

Industry

Food safety and dairy products testing

State

Year

2023

Financing

SBA 7a

Deal Source

broker

Financing Structure

SBA 7(a)

Buyer Equity

Seller Note

Strategic Rationale

Sought a recession-resistant business serving essential food safety needs in dairy industry with strong recurring revenue from long-standing customer relationships.

Post-Acquisition Performance

Six months into ownership; business operating with high-quality recurring revenue from multi-decade customer relationships; planning major ERP software implementation to modernize paper-based processes and improve efficiency.

Key Takeaways

1Identify recession-resistant businesses with stable, recurring revenue streams that remain essential regardless of economic conditions.
2Thoroughly communicate deal terms and lending requirements to sellers early to avoid surprises and renegotiations near closing.
3Quality of business and team management matters more than size; a smaller high-quality business with strong existing leadership is preferable to a larger lower-quality acquisition.
4Finance experience helps with deal structuring and understanding business metrics, but people management and operational expertise drive success as an owner.
5Build relationships with sellers by walking them through the entire process transparently, including quality of earnings reports and lender requirements.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Live Oak Banking Company95%

$3.4MP + 1.50%FY2023

Live Oak Banking Company95%

$250KP + 1.50%FY2023

U.S. Bank, National Association95%

$45KP + 4.50%FY2019

The Deal

Business

Sierra Dairy Laboratory

Industry

Food safety and dairy products testing

State

Year

2023

Financing

SBA 7a

Deal Source

broker

Financing Structure

SBA 7(a)

Buyer Equity

Seller Note

Strategic Rationale

Sought a recession-resistant business serving essential food safety needs in dairy industry with strong recurring revenue from long-standing customer relationships.

Post-Acquisition Performance

Key Takeaways

1Identify recession-resistant businesses with stable, recurring revenue streams that remain essential regardless of economic conditions.

2Thoroughly communicate deal terms and lending requirements to sellers early to avoid surprises and renegotiations near closing.

3Quality of business and team management matters more than size; a smaller high-quality business with strong existing leadership is preferable to a larger lower-quality acquisition.

4Finance experience helps with deal structuring and understanding business metrics, but people management and operational expertise drive success as an owner.

5Build relationships with sellers by walking them through the entire process transparently, including quality of earnings reports and lender requirements.