This Week’s Breakdown (in 10 Seconds):
Kyle spent almost 20 years in the corporate world, 9 of them at LinkedIn.
But he felt like he'd missed the entrepreneurship train, and he didn't want to spend another 20 years behind a screen working for someone else.
So he quit his job, gave himself 12 months, and went hunting for a business to buy.
The business he bought was completely off-market.
He found it through an introduction at a basketball game, from an owner who wasn't looking to sell.
Then the deal collapsed 3 times before he finally closed it.
Today he runs Get Out, one pass that gets a family into 100+ venues like amusement parks, museums, and pro sports games.
It now has over 300,000 members across 33 markets.
And for our audio-only listeners, jump in and listen on Spotify or Apple Podcasts!
But if you want to learn a bit more, let's dive into the story...
Hello SMB Deal Hunters!
How many of you think an SBA loan is the only way to buy a company?
For most first time buyers, it's the smartest route in.
But it isn't the only one.
Kyle bought his company without one, and how he did it is a masterclass in creative financing.
For 9 years, he was an employee at LinkedIn.
In all that time he had never raised a dollar or closed a single deal.
And he still bought a company, with no SBA loan and no bank behind him.
He wasn't a founder, and he wasn't a dealmaker.
Just a career employee who had finally decided to own something instead of building it for someone else.
When he started looking, he pictured the same path most first-time buyers take: put in some of his own money as a down payment, borrow the rest, and own 100% of a small business.
Then he found the one he actually wanted, and it was nothing like the small, simple deal he'd planned for.
It was called Get Out Pass, and for one yearly payment it got a family into more than 100 places, like water parks, zoos, and trampoline parks.
He knew that model very well.
Early in his career, he'd spent 3 years in the exact same kind of business, just for gyms instead of families.
But it was far too big to buy with his savings and a loan.
So the standard route was out, and he had to raise the money from outside investors, something he had never done before.
He pitched around 60 of them, learning how to raise capital as he went.
And there was no room to fumble it, with a real company on the line.
Even then, it nearly didn't happen.
The deal collapsed 3 times over 9 months.
At one point he paid a $40k diligence bill out of his own pocket, and it forced the entire price to be renegotiated.
To get it across the line, he had to let go of the one thing he'd set out to have: 100% ownership.
The investors who rescued the deal took the majority, and Kyle kept a smaller slice.
It was less than he'd pictured on day one, but far more than he'd ever owned before.
Today, Kyle is the CEO of Get Out.
He took the business he bought, merged it with its biggest competitor, and rebranded the two into one.
Member Spotlight
For those who missed it, we also did an SMB Deal Hunter Pro alumni interview breaking down how Chelsea bought a $3M pet food business making $500K/yr.
Chelsea is a former Boeing and Amazon employee who spent 12 years in supplier management and finance.
She knew she wanted to buy a business. She also knew that finding the right one on her own could take years.
So she joined the Pro program, and our team brought her the business she would eventually own, completely off-market.
But she originally lost it because the seller's son decided he might want to own the business himself.
9 months later, she came back with a Hail Mary offer and won.
The result?
→ We helped structure the Hail Mary offer so she paid $400K less than the seller wanted up front
→ Just before her now-or-never offer, Chelsea was about to give up and take a full-time job to pay the bills
→ Her store managers run the day-to-day while she focuses on growing the business
She spent 12 years building someone else's company. Now she owns one that's actually hers.
And here's what she had to say:
“I go home crying happy tears, and I've never cried happy tears in my life.”
So, if you want us to work with you to find, finance, and acquire a million-dollar cash-flowing business in the next 6-12 months, you might be interested in the Pro program.
P.S. 👀 August isn't even over, and 7 of our Pro members have already closed deals, with another 23 under LOI.
Deal activity always picks up as summer ends and everyone's back at their desk, and at this pace August is tracking to be one of our best months inside Pro.
So if you want us to help you find, finance, and acquire a million-dollar cash-flowing business in the next 6 to 12 months, start now and you could be under contract before the holidays.
COMMUNITY PERKS
• Ready to buy and operate a $1M+ business? Get expert help at every step.
• Want to invest passively in SMB acquisitions? Get access to investment opportunities.
• Get a personal introduction to my preferred SBA 7(a) lender, non-SBA lenders, Quality of Earnings providers, or legal counsel
• Raising capital for your deal? I’ll connect you with investors from the SMB Deal Hunter Community.
• Interested in selling your business? I’ll help you connect with buyers from the SMB Deal Hunter Community.
THAT’S A WRAP
Want me to interview you for my podcast? Hit reply.
See you next week with some new deals!
-Helen Guo
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Disclaimer
This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only; SMB Deal Hunter does not verify nor confirm information. SMB Deal Hunter is not making any offer to readers to participate in any transaction or opportunity described herein.