Carl Allen and his team delve into a $5M acquisition opportunity in the personal care and contract manufacturing space, featuring the “Be Well Factory.” Specializing in custom formulations, private labeling, and contract manufacturing for high-quality personal care products, this 38-year-old business presents a unique opportunity to scale an established brand with deep industry roots. From high-end luxury clients like Ritz Carlton and Beautycounter to niche spa markets, the business has carved out a “Goldilocks” space in the industry—just the right size to exploit growing trends while remaining agile.

The episode explores the key challenges and opportunities associated with the deal. One of the business’s greatest strengths is its well-established team, which includes a seasoned general manager and a strong product development department. However, with revenue recently declining due to the loss of two major clients, the conversation highlights areas where growth strategies, such as modernized sales techniques and expanded marketing efforts, can reignite its upward trajectory.

Listeners gain insights into the business’s high gross margins, its strategic use of 87 SKUs, and the seller’s openness to creative deal structures. The growth strategy focuses on four pillars: expanding sales channels, leveraging private and contract label opportunities, executing strategic mergers and acquisitions, and exploring international expansion. Key growth markets in private label and contract manufacturing, both forecasted to grow over 5% annually, provide fertile ground for scaling operations and revenue.

The team also discusses mitigating risks associated with customer concentration, supply chain dependencies, and the need for a contingency plan. With robust discussions on creative deal structures—such as equity rollovers, earnouts, and leveraging SBA loans—the episode offers actionable advice for tackling the unique challenges of acquiring a mature business in a competitive market.

This podcast is a masterclass in how to approach an acquisition with an eye for growth, innovation, and sustainability. By addressing gaps in the current sales strategy and leveraging digital marketing, social media, and influencer partnerships, the new owners can unlock the untapped potential of the Be Well Factory. Furthermore, discussions around aligning the seller’s vision with long-term buyer goals provide valuable lessons in navigating complex negotiations.

Tune in for an in-depth exploration of this exciting deal and discover how to balance creative deal-making with strategic planning to create a business poised for exponential growth.

Full Transcript:

Alright. Good morning, folks, from the guy who brought you big leads.

Today, we’re gonna talk about the Be Well Factory.

And this is cool, and I’m really excited about this. We do contract manufacturing, custom formulation, and private labeling because health is wealth.

It’s an off market lead and one that I’m I’m pretty excited to share with you. So, we got myself.

You know me. I know you.

Big happy family here. And I am so fortunate and excited because I’ve been looking for an opportunity to partner with this individual since I had the pleasure of meeting him last year in Atlanta. This is my brother, Oscar, and he brings a lot of wonderful stuff to this space.

We talked a bit about me, last time I was on here presenting big leads to you folks. I’m the vision and strategy guy, the growth and scale guy. I’ve done some really fun stuff with a lot of clients whom I love, and that’s particularly salient to the deal this morning. A lot of high end luxury health and wellness folks in the spa space, Ritz Carlton, Marriott Bonvoy, Beautycounter.

Some really fun things. People I love. And then you got this guy right here.

Tactical execution, subject matter expertise, seasoned manufacturing professional, over twenty of your experience, certified lean six sigma black belt, three lean management system implementations under his belt. This guy’s a beast.

What more can I say?

So today, the Be Well Factory, as I sort of introduced, we specialize in creating high quality personal care products through contract manufacturing, custom formulation, and private labeling. And we offer a range of services, including unique beauty products, tailored to client needs, providing preformulated ready to use professional products for spas and customers.

We are c g and p compliant. I and with that comes some rigorous and beautiful quality control that is sort of benchmarked to the space.

And we also provide a low minimum orders, competitive pricing, and on time delivery. Turnaround is key in this space. We’ve been in business for thirty eight years. Our whole sort of mantra at this point in time is low margin.

Excuse me. Low volume, high end margin. We’ve got eighty seven SKUs. We have a GM in place, clients of over fifteen years, which can be nuanced. We’ll talk about that in a second. We own the real estate, and we have immediate m and a opportunities.

Our seller has colleagues who are really interested in understanding how this goes because they’d like to retire. And more importantly, they’re in the space too. Good fit ancillary capabilities for things that would make sense in an intentional roll up of this nature.

There is one small lie on this deal, though. For those who are looking at the bottom left of the screen, this draft is going in the wrong direction. We just gotta turn it around, just flip it. And as tempting as it was to just screenshot this slide and put it in in the reverse, it’s not always that easy, in the world of business. But Oscar and I, we don’t think it’s gonna be that hard, and we’ll talk to you more about that.

So the quick hits, our core business, customer base, sales and marketing, competitive advantages. We sort of went through a lot of this.

This is really because I, you know, I probably just need a slide that does only the market analysis. That’s this deal on the top right. Something that is worth mentioning, our seller really considers this business.

She considers it that we are in a very Goldilocks space, just given our size and given the nature of the industry. We’ll go through some of those growth trends in a second. Oscar and I agree. It sort of got a really niche Goldilocks appeal to it, and that sort of reflects when you take a little bit of a step back and look at the market analysis for other deals that are equitably sized in terms of team, location, reach, and revenue. We’ve got a few to the right, and it sort of gives that visual of, you know, where, we’d expect to to play and when, when we think about the larger market and larger roll ups.

So the market overview, personal care products growing at four dot three, private label trends growing at five dot one, and the contract manufacturing space, growing at six dot two. This is meaningful because it gives us a chance to really dial in where we make our money currently and where we might be best served to focus as we move forward.

So a little bit about moving forward.

We’ve got a growth strategy for pillars that are really meaningful for the work we intend to do here. First, sales. We saw the decline in revenue. We saw that dip.

That is because we lost two of our bigger clients. It speaks to a overly concentrated customer mix, but also to what our seller has quite candidly said, you know what? Sales for me is more traditional. It’s showing up to all of the the trade shows.

It’s going to meet people person, to person, face to face, person to person. I’m not even sure that’s a thing. And I appreciate that. Right?

We appreciate that that traditional approach to getting it done. This is a relationship business, and, Oscar and I believe it always should be.

But it’s bigger than that these days. And Arcelor has been very transparent. She doesn’t really get the digital landscape.

She is the sales team. And because of that, her knowledge and where she’s at with her thoughts to the business, they’re sort of in that traditional mindset.

She’s been doing this for thirty eight years, and so she’s really looking for someone with the energy and the charisma and the enthusiasm to come in and talk about things like social media, digital marketing, what can influencers do for this space, new approaches, new leaderships that will help her see blind spots that she has, not because of a a lack of wherewithal, but just because she’s been doing it this way for a while.

This is what she knows. She’s been vocal. She wants someone to come in and sort of reveal to her, where else she could be working. So most immediately, sales.

Two additional clients is gonna drive revenue, and she believes to the ten million dollar top line, and she’s been very vocal. She wants a buyer who can come in and kick this to ten million. She knows it can get there. They were peak six million for a while.

So we’ll talk about that more in a second.

We’ve got some clients in face, body, as well as private label that are positioned to serve as well.

Marketing. We’ve got eighty seven SKUs, but we’re not doing as much as we could be with it. So we could better leverage our own private line through sample distribution and outsource marketing channels and networks.

And, of course, this is front and center at the heart of everything we do. Strategic m and a. I mentioned the seller has two to three colleagues who are looking to retire, and we have two to three qualified leads already in our funnel that would make sense for an intentional, roll up within this space.

So that’s more the immediate one, two, three. Something else to consider, expansion. We mentioned that we are low volume, high margin. We could capitalize on the other side of that by being high volume, high margin with a new site in either, Mexico or, somewhere, overseas, perhaps Australia, which would give us access to the Asian market.

Oscar, I love this particular slide. You wanna walk us through the ecosystem vision?

Yes. Of course. Thank you, Jason. And just to mention one thing, the the slide, that you previously showed is aligned to what a seller, to a seller’s vision. Right? So Right.

We we both groups right now, we’re aligned on on what can be done.

So just, to let you guys know a little bit about the about the whole vision or the strategy, is this, this ecosystem.

Right now, we’re working on the on the upper left corner, which is a contract manufacturing company.

But we also have some ideas on acquiring, a lab for product development.

One key item is that this company has their own lab for product development. So that’s a that’s a good synergy there.

And like, Jason was saying, there are two to three interested parties from the seller side. And on our side, we have, two another two to three other companies that we’ve been, having conversations with. That will be for the niche brands. Right?

And, one one important thing to mention here is that the company that we’ve been talking to, they they are between one to three million dollars revenue, and they struggle a lot with their contract manufacturers because they they place, a heavy load on MOQs and lead times. Right? So that’s why Jason is mentioning that we are in a in a in a in a very good position to supply those or that gap that these, small brands have. Right? So this is the overall the overall vision.

And, and, yeah, and that’s that’s what we’re after.

Love it. Love it. And it’s that kind of ecosystem thinking that really, puts an element of flow into what you’re looking to build.

Financial projections. So I you sort of blend well, not if you sort of. If you blend the average across the three pillars of what we do, you get this five dot two growth rate. And we feel that is nice and conservative to really understand that if we were steady state and we were just coming in and, you know, new person in the owner’s chair.

We’re gonna do alright. Like, it is still a good cash flowing business. It is a little bit lean, but that’s also a testament to what our seller has done to this point. She’s managed to keep it, out of the red, which in and of itself is is somewhat of an art, and she has our respect for that. She’s such a baddie. It is so cool to talk with her, in any case.

But part of the real joy of what we get to do is we get to come in and bring these growth visions to life. And that’s something extremely, salient in the context of this deal.

We, at this time, are looking at probably three ways to do this. We could come in and make an offer and, you know, see where that gets us. Right? It could be annuity. It could be SBA. But our seller has already told us that she has a number, and she’s, you know, intentionally planning her exit.

So something that is appealing is the idea of what we do here in CFE, and it’s Chris Moore’s class at catch twenty two. Right? We see the business, and the irony is that these are the sorts of things that we can solve if we are in the business. So that is something we want to consider, as we look at how to get her there.

The idea that she will want to not only see that higher valuation, but we could work together and have the option to buy the business when we get her to that top line number she’s looking for. And this is extremely meaningful, on the next slide. So first and foremost, this is all just from the forecast model that Carl has provided us.

So we’ll take a look at that in a second, but it’s just all extrapolated from that. This is forecast a, assuming a twenty percent growth with the, sales and marketing components of our growth strategy implemented, which is nice. It brings us back to five million top line. But what really tickled me is when I took a look at the plus one acquisition on the next slide and saw where it could potentially get us.

Remember what our seller said? I need someone who can make this ten million dollar company. Well, lo and behold, look at this. We can actually probably get this to eleven million with the full scope of our growth strategy going across sales, marketing, and a single bolt on acquisition. And, again, this is what we feel is is somewhat conservative to this point about the numbers. So, we thought that was It’s it’s definitely.

Yeah. It’s worth to mention, Jason. I didn’t say it before, but just one small business of one million dollar, that’s just eight percent of revenue increase.

Yeah.

So that’s that’s a power of of the.

Yeah. Yeah. Really well said.

Alright. I will take you folks to the numbers.

And can y’all see the one sheet? This is my favorite part of the call because then I get to turn this all over to people who are much smarter than myself, and we get to get all your feedback and thoughts.

Either we did it great or we did poorly in JSON.

Maybe we lost our Internet connection. I don’t know.

It’s just you and I?

No. I think everybody’s just stunned at how awesome you guys are.

So one one thing to mention, like, Jason was saying. Right? Definitely, the revenue is going to your in the other direction.

We think it’s an opportunity.

The mod seems to be we think it might be higher.

Like Jason said, this lady is great. She is good at at report, but we think they’re she’s struggling a little bit more.

Yeah.

Regardless of that, one thing that call our attention is how she managed their mark her her margins.

It’s not it’s not common to see that when when with a declining revenue that the owner for a small business is able to support the margins.

So it’s a little bit, a lot of variation little little variation, but she always managed to stay in in the green zone. That’s that’s, that speaks discipline, from what we can see.

James, we got a hand raised. My buddy.

Love the space, chemical formulation, blending, packaging, great space with the right markets.

Y’all taking this this really nice company with all of y’all’s expertise.

Ten ten mil is only the beginning, upside.

Y’all y’all y’all will be able as creative as y’all are and Jason with his with the creative abilities that you have, again, it’s you like I like, we discussed the other day, you can make you can pack you can blend and package everything in the world, but if you can’t sell it, then you’re more broke than the man who never started.

So so I’d I really, really am excited for y’all. This is gonna be a great, great opportunity.

Great opportunity. But just watch your cost and watch your, again, your raw materials. You just just make sure that all your, and your regulatory. She’s kept this thing profitable in a California market, in this industry.

I commend her because the regulatory side of it, trying to stand in compliance, is is huge in this. So, I I commend her. Y’all got a great business here.

Yeah. Good. Thank you. Appreciate that, James. And, again, thank you for all the insight you offered on, on Monday’s call too.

You got some real sharp visibility to this. So thank you. Alright.

I see I thought there was something that I was the Josh said why was EBITDA so high in twenty twenty two, and then why we’re at that so low in twenty twenty three?

Yeah. That’s a great question. We’ve got a follow-up with her tomorrow to talk through more of she was pretty hesitant to give the numbers, and now we understand why. Right? She it’s it’s something we we see fairly often.

But now that we have this sort of timeline, we’ve got more contacts to go back and ask, okay. At what point did that client you mentioned drop off? Is that what I’m seeing now that I’ve got this sort of, you know, view of how things have progressed and increased, similar to your point, the pre drug. Why did revenue drop in half in two years? You know? I we did talk about that a little bit.

The clients, she lost two of her key clients.

They’ve been with her a while, and it speaks to the customer concentration that we believe we can, you know, address, if you were to come in the business.

Let me see. But, yeah, those are all great questions.

I’m definitely taking note of those, and we’re gonna meet with her tomorrow to talk more about, some of the the details financially.

Is let me see. Alright. That was Josh. And then, Ben, you got your hand up.

And I was, I love the space, first of all, because product development is is super cool and fun to work on.

But I was actually just talking to somebody else I was just talking to somebody else on on who is a protege who has a similar business, about formulations for, like, natural toothpaste.

Are you Nice.

You guys confident? I mean, other than I know you guys can run business as well.

How solid is their product development department as far as, like, going forward? Or is she I know she’s big on the sales and the relationships, but, yeah, how’s how’s the back, like, the the production part of the business? Or is everybody on board to stay? Do they know she’s selling?

Yeah. Yeah. So they those are all great questions. So they are not aware she is selling, but the team is strong. When we asked her about, you know, tell us walk us through your USPs.

There were three, and the first being product development. She’s exceptionally proud of the team she has in place that allows her to innovate in the space that allows her to really address, private labeling, excuse me, custom formulation needs for her clients.

So, I feel like I I mean, we’re hoping for a site visit sooner than later. I’m excited about that. But, I feel like there are good leading indicators that the right team is in place to address a lot of this growth. She speaks very well to the way in which she intentionally empowers folks to just really be their best. She’s a a really cool leader figure.

So, again, I feel like that should stack up well for us.

Obviously, a lot more to discover. Is that helpful? Did it answer your question?

Yeah.

Yeah. Also, on on the, seller notes, your biggest threat being the market supply chains, etcetera, is that do they manufacture here in the States and then but the but the materials come from elsewhere? Or where’s your majority of their manufacturing coming in?

How how are you gonna address supply chain issues?

Yeah.

Oscar I mean, that that’s also a very good question.

Yeah.

So, actually, we’re gonna have our second, meeting tomorrow with the seller, and all those questions are are key. And, certainly, for us to move forward, we really need to do a an on-site visit. Right?

So I’m expecting to to be able to book something tomorrow, or start, guiding the conversation towards that. Now regarding the the supply chain, I mean, definitely, as an ops guy, I can tell you, we must have at least a dual source. Right? So regardless if the economy is booming or if it’s going down, you better have that.

So that’s that’s gonna be one of the items that we need to consider for transfer of value. Right? The dependency on on your suppliers. So that’s that’s still something on on our action item list.

Awesome. I I think, you know, this this has good potential, and you don’t wanna buy a perfect business. You wanna buy one you can improve. So this is super cool. Exactly. Yeah. Job, guys.

Although, I I don’t know. If someone offered me a perfect business, I’d think about it. I I’d I’d definitely consider it. Alright.

For the right price. For the right price. Yeah.

For the right price. Yeah. For the right price for sure. Gerardo.

Hi, guys. Thank you. Congratulations. I I love this space. I love the private label and the white label thing.

My only some thoughts that I have is, one, you have to think about other sources of volume or other sources of revenue. I think, potentially, you’re thinking a little bit of unilateral on this thing. There’s many other ways that you can grow this business without having to depend on big clients.

You know? Potentially, you can build, smaller entrepreneur brands, you know, and that type of thing. Again, we can talk about it later.

The the another question that I have, you were talking about Mexico, and, you know, I’m from Mexico originally. And, usually, you know, Mexico, Colombia, and all that provides high margins.

But if you’re talking that you already have fifty eight, fifty five, fifty three gross margins Mhmm.

You know, I don’t know how much you’re gonna gain for building a plant there. Potentially, you can you can hire a third party manufacturer down there. I know one of the biggest, private label producers in Colombia.

So, potentially, it’s more about finding a supplier there than building a plant or establishing a plant.

Yeah. And I and I think you potentially need just strategic thinking behind, okay, how do we grow this thing beyond the current set, you know, of of clients that she has or or target clients that she has because I think there’s there’s a lot more to give on this side. Even MLMs, you know, I mean, that they they I mean, I think that the opportunity is great.

You just have to really sit down and say, okay.

Thinking out of the traditional, where else can I grow with this? You know? That that’s sort of just my thoughts and, you know, I’ve done I’ve done these things before. And if you wanna reach out, I believe more than glad to talk to you. But I think it’s it’s more understanding than just unilateral thinking on the same path that she’s taken so far.

That’s what I think. I think it’s really well said. I I yeah.

I agree that there is, oh, shoot. I lost it.

This is all somewhat admittedly surface level to this point. Right?

The the opportunity is really to get in and move beyond, to your point, being unilateral, the things that have been done, the things that have been proposed because that’s part of what she she was relaying to us as one of the concerns. Right? I’ve been doing it thirty eight years. I need you to expose me to things that I haven’t yet considered. And part of that is that deep and meaningful conversation where you really pull it apart where you’re able to listen. So I think that’s a really good point, and I appreciate you saying that.

And You know?

And the only thing I didn’t get very, very clear, if she wants a partner, if she wants to sell part of it, exit. I mean, that’s the only thing that I didn’t understand fully.

Yeah. That’s a great one. And I think she lacks that clarity as well, which is where we have, as protege, a real advantage because we come in with that expertise to not only just tell her what we know about this vertical this space, but how this all works. And we have a lot of latitude here to suggest here the three scenarios and gauge her thoughts.

I think the thing that stuck with me was on our first call, and she opened up and said, I am strategically planning my exit. And I love that because that means we can talk about things like CFE. We can position the cash it closed she would get now versus the difference in, you know, taking a full annuity across time. She’s gonna be able to see this illustrate what we intend to do through m and a alone and understand that I I may want a second bite of the apple. So I I think it’s gonna be up to us to educate as we we often say, and I think we’ve got a lot of latitude to do that, with this particular opportunity. So we will see. That’s a great point, though.

Alright. Victor.

Hey. Hi, guys.

Great great presentation.

My question is, what will be the plan of execution? Are you gonna do a leveraged buyout? Are you gonna do partnering?

Or are you gonna be doing, annuity deal with her? What will be your plan?

Yeah. Yeah.

I You don’t have a price yet.

So I Yeah.

That’s right. I think just the way things are going, and, you know, we were talking about this as well.

It’s going to be a meaningful conversation to discuss those options. I think the way Oscar and I are looking at it most immediately, a CFE is probably making the most sense, to start with the option to buy once we get in, and grow it a bit in that right direction. I also think that, you know, that’s what she is going to be most open to. The real the two real options that I see are going to be appealing to our that higher valuation, which would lead us more towards an annuity if we’re able to educate her properly as to why that is the best for her, your number.

And then we’ll introduce this number, annuity, and we’ll see if he with you along the way to get you there.

In our heads, that’s sort of, you know, the the progression to this point.

Okay. But the nice thing is it really speak to yeah. It speaks to, like, the art of creative deal making, which is exciting for us. It’s a lot more than going in and just saying, hey. SBA, eighty, ninety. I will go. There’s a lot of room for that really good conversation.

So Yeah.

Okay. Nice. Alright. Go for it.

James.

Yes.

One little thought and being hit the nail on the head.

You have, one of the most important parts of this after actually sales and your production and, quality control and all of that is is your product development, staying on top of that.

What you could do too is is let is with the meet social media expertise that you have and that the team has and can pull together, what you may want to think about is is coming up is is broaden your product line some. It’s it wouldn’t take to do a lateral move, say, into natural home cleaning products or something like that. Setting up a line for that would not be hard to do. And a lot of components are already there.

And then turn around, and and that way you’re not in direct competition with your contracted customers, you know, and follow and create your own product line. And as dynamic a marketer as you are, you can sell the snot out of it and and then turn around and set it up on a subscription model and sell I mean, look what the actress the actress did. I mean, they she she’s not has no idea what she’s doing in the chemical business, and her and she put together a team, set up a home cleaning comp chemical cleaning business with, natural all natural chemicals and sold it for over a billion dollars, the Alba, Jessica Alba.

And so company. Yeah. So you could leverage that. And then, and and and and, I mean, that that would get I believe that could that and then you could look at other types of product lines as well. But one thing is is you have got to stay on top of your product development. And because it’s just like in the space that I used to be in, the Safakta technology that that was there when I let when I sold our company.

It it it’s compare that to today, it’s like comparing, nineteen, nineteen eighty Camaro to a nine Camaro today.

So I love it. Somebody’s staying on top of that because it the the technology’s changing so quick even in chemicals.

And and a lot of the stuff is still valid today. A lot of your old formulations and old stuff. But but, man, these some of these surfactants they have now are amazing, and they didn’t have them when I was around. So and you got surfactants in just about everything.

So Yeah. I really encourage you because that you you you guys have got a diamond in the rough here. If it’s handled right, you got a diamond in the rough big time.

Yep. Yeah. Those are some great thoughts. I really appreciate it.

Thank you, James.

Anthony Miller. And then I’ve got Dave, and I’ve got.

Hey, Jason.

Just a heads up, do you do you still need time for your next presentation?

Yeah. Or we can I I don’t wanna cut the conversation cord? I I can be back with the next presentation.

I just wanna make sure you have time to present your next one. That’s all. So Yeah. I’ll be ready.

I appreciate it, but I I don’t Yeah.

Cool. I don’t wanna cut these folks off.

No worries.

Alright.

I appreciate it.

My my only question is, do you have any contingency? I know she if I understood you correctly, that they lose public clients, and that’s why the revenue has dipped dramatically. And she lose another client. Do you have any contingency for that? Because it seems like it would still be going in the wrong direction.

Right. And no. Not to this point. That’s gonna take some more conversation to understand a little bit deep with a little deeper knowledge the range across the three pillars and then the range of her clientele, to sort of pull the thread of, you know, that initial customer analysis question.

Right? Like, what walk me through your customer concentration. You lost two. If you lost another, is that gonna cause you to lose sleep at night?

And I think it’s a great point is right now, I’m not aware of what contingency is in place should someone else walk out. And another thing that’s gonna be really valuable to understand is with a bit more candid conversation, why did those two leave? Right? Like, what is your understanding of why those relationships and those accounts left?

It’s a great consideration.

David, thank you.

Yeah. Thank you.

That’s the first thing I was gonna touch on is I I know you’re gonna do a deep dive into, why they left.

It’s two customers. Did they both leave in twenty twenty three? Because there was a you know? You know? Twenty twenty two had a drop in revenue of six hundred k, and then twenty twenty three had a revenue of one point four mil.

Is one one customer and the other the other customer?

Yep.

Certainly find out what actual percentage.

It’s overall, it’s a fifty percent drop in revenue. Overall, what percentage was those two customers? Because if it’s smaller than fifty percent, you there’s a bigger problem where other customers, you know, the you know, did did a product have a bad experience? Did they ruin their brand?

It’s it’s Yeah.

Very important.

Yeah. Was it a QC issue? One of the things she mentions is one of her, you know, pillars of pride is the QC they do. But you have to ask, did something happen?

Because thirty eight years in the game, I mean, it it’s I know you’ll do that anyway.

I just wanted to point that out. And and negative AR, are they taking prepayment for sales? And if so, make sure you factor that into the cash that you receive and that they don’t all that cash out and then leave you the fulfilled product that they already received the money for.

That’s Right.

Probably obvious to you, but that’s pretty much my only two comments. Thanks.

Yeah. Great comments. I really appreciate that.

Lenny, what’s going on, buddy?

Hey. How are you? As always, Jason, awesome presentation.

I’m not gonna take a long time, because a lot of the a lot of great points from, proteges about customer concentration.

Kinda dovetailing customer concentration and deal structure. One of the things that’s done in the PE world when there is a great company and there is customer concentration is heavy, heavy, heavy, heavy, heavy, heavy earn out. So, you can do a deal structure, and I love to do equity rollover especially because it sounds like she needs, you know, new blood, but she her passion is, you know, product development and QC.

You could do a combination of equity rollover.

That also gets her the second bite out of the apple and, you know, puts her on a clear plan or strategy for exit, and then combine that with heavy duty earn out, to mitigate the customer concentration concerns, and it would drastically reduce your exposure and debt service.

Those are both great options. Those are that’s a heavy hitting one two combo. I like that. I appreciate that.