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Comment by sema4hacker

Finding mom+pop businesses with growth potential can be difficult. If there is no growth you might not be able to squeeze any money out of the business at all. I recently did due diligence on the highest rated bakery in our area owned by a couple that did just about all the work but wanted to retire. Unfortunately all the profits became their salary. Replacing them meant their replacements' salaries would eat all the profits too. Their weekly sales were the same regardless of how many days they were open because new customers were rare and existing customers either squeezed into or spread out to whatever hours they were open. 40 other local bakeries meant competition was stiff. Everything was cash so an accurate audit was essentially impossible.

Perhaps Teamshares is good at identifying acquisitions with sufficient margins to permanently afford Teamshares services, but if I was an employee at a company being bought I'd be concerned that after the owners retired with their cut and after Teamshares kept extracting their fees, I'd be left holding the bag, ie, a non-growing company slowly dying.

parent sema4hacker 3 years ago

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