Make Bank buying a bankrupt business | With Mehtab Bhogal - Acquisitions Anonymous Episode 89
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Bill D’Alessandro (@BillDA)) is joined by Mehtab Bhogal (LinkedIn link)) DTC eCommerce specialist to talk about distressed acquisitions & turnarounds, operations, capital structures, downsizing for quality, finding a business partner on Reddit, why makeup brands suck, and much more.

We discuss a Bankruptcy deal, BH Cosmetics, linked below.

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Acquisitions Anonymous Episode 89

Show Notes:

(0:00) Intro

(1:00) Cloudbookkeeping.com

(2:09) Mehtab's introduction

(4:23) Why do you buy a business to downsize it? [Episode clip for wednesday]

(6:14) What is your general path after acquiring a business?

(7:21) What does the cap structure look like pre vs. post-close?

(10:23) How do you handle the Equity?

(15:39) Let's jump to the Deal: BH Cosmetics.

(18:14) Revenue trajectory

(21:19) What is a 363 auction?

(23:16) What does the process look like?

(24:17) What do you think about this deal from a diligence and structure perspective?

(26:52) How well do you know the business at the bidding stage?

(28:26) Let's say you give it a go, how do you decide what the proposal is going to be for lenders and equity holders?

32:00 DIP loan: Debtor in possession financing [Clip]

(32:43) What is the downside risk here? How does Karta add a layer of coverage?

(34:46) Let's take about the operation side: How do you start a turnaround?

(40:02) What are specifics about diligence for your company? Why are product teams so important?

(44:05) BH got purchased at $4Mio. Was it expensive?

(48:35) Tell us about the Return Profile, & how does it relate to equity value?

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Links:

• BH Cosmetics Deal Link)

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Past guests on Acquanon include Nick Huber, Brent Beshore, Aaron Rubin, Mike Botkin, Ari Ozick, Mitchell Baldridge, Xavier Helgelsen, Mike Loftus, Steve Divitkos, Dzmitry Miranovich, Morgan Tate and more.

Additional episodes you might enjoy:

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• Do you enjoy our content? Rate our show)!
• Follow us on Twitter @acquanon) Learnings about small business acquisitions and operations.

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