In this episode, Michael and Heather analyze a 25-year-old background search provider in California with a $7 million asking price and $1.1 million cash flow. They discuss the business model, the technology and operations behind criminal background checks, and the challenges of evaluating a market-leading "data wholesaler." The team debates its potential as a strong acquisition or a risky proposition amidst tech disruptions and high cash demands.

Thanks to this weeks sponsors!

Acquisition Lab: Serious about buying a business? Join Acquisition Lab’s proven framework and support community. Learn more at AcquisitionLab.com or email Chelsea Wood at [email protected].

HoldCo Conference: Learn from top HoldCo owners! Join us in Utah next spring for HoldCo Conference 2025. Save 10% with code AAPod at HoldCoConference.com.

Episode Key Highlights:

• Background Checks Unpacked: The process and customer base for this business.
• Financial Overview: $3.8M revenue, $1.1M cash flow, $7M asking price.
• Offshore Operations: A 15-year document processing facility included in the sale.
• Competitive Edge: Unique state-wide coverage and proprietary systems.
• Tech Disruption: Concerns about AI and automation reshaping the industry.
• High Barrier to Entry?: Evaluating claims of market dominance.

Subscribe to weekly our Newsletter and get curated deals in your inbox

Advertise with us by clicking here

• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

For inquiries or suggestions, email us at [email protected]