Ujwal Velagapudi – “I’ll close in 2 emails” – Ep.119

My guest on this episode is Ujwal Velagapudi. Ujwal has acquired nine small companies, pieces of real estate, and other investments over the past few years and has stumbled upon quite a number of unique companies. He’s invested in a vending business, virtual assistant business, commercial real estate, a sports bar, and several others.

This episode is about getting started and is a departure from our usual episodes about larger businesses in order to focus on small incremental deals running efficiently.

Ujwal is really thoughtful and claims to not be a great manager or operator, but I advise you not to believe him. We talk about all things amusement vending, re-investing profits, close calls, what he is interested in today, and his changed views on debt. Enjoy.

Listen weekly and follow the show on Apple PodcastsSpotifyGoogle PodcastsStitcherBreaker, and TuneIn.

Links:

Ujwal on LinkedIn

HiByron

Topics:

(4:20) – Ujwal’s acquisition off of MicroAcquire and other businesses he’s bought

(10:06) – What did the business do when you acquired it and what have you grown it to?

(12:05) – What did you do before you decided to start buying companies?

(13:31) – How are you getting the capital for these deals?

(16:49) – Do you still live off of $1500 per month?

(17:26) – What stands out to you now in a potential acquisition vs. when you first started?

(18:45) – What businesses do you stay away from?

(19:35) – Can you share more information on your vending business?

(21:28) – What types of machines are the most profitable?

(23:41) – How does the operations structure for the Vending business work?

(25:10) – How many employees are in your portfolio?

(25:44) – What have you learned about management during this journey?

(28:15) – How do you onboard new employees at your companies?

(30:58) – Where do you see things needing to improve?

(32:56) – What’s the growth plan?

(37:15) – How much would the average machine earn in net profit for the restaurant on a monthly basis?

(41:46) – What are some mistakes you’ve made that could have been “nails in the coffin” for your business?

(45:53) – What college class would you teach if it could be on anything?

(47:37) – What’s a strongly held belief that you’ve changed your mind on?

(49:38) – What’s the best business you’ve ever seen?

Think Like an Owner Sponsors:

Live Oak Bank — Live Oak Bank is a seasoned SMB lender providing SBA and conventional financing for search funds, independent sponsors, private equity firms, and individuals looking to acquire lower middle-market companies. Live Oak has closed billions of dollars in SBA financing and is actively looking to help more small company investors across the country. If you are in the process of acquiring a company or thinking about starting a search, contact Lisa Forrest or Heather Endresen directly to start a conversation or go to www.liveoakbank.com/think.

Hood & Strong, LLP — Hood & Strong is a CPA firm with a long history of working with search funds and private equity firms on diligence, assurance, tax services, and more. Hood & Strong is highly skilled in working with search funds, providing quality of earnings and due diligence services during the search, along with assurance and tax services post-acquisition. They offer a unique way to approach acquisition diligence and manage costs effectively. To learn more about how Hood & Strong can help your search, acquisition, and beyond, please email one of their partners Jerry Zhou at [email protected] 

Oberle Risk Strategies– Oberle is the leading specialty insurance brokerage catering to search funds and the broader ETA community, providing complimentary due diligence assessments of the target company’s commercial insurance and employee benefits programs. Over the past decade, August Felker and his team have engaged with hundreds of searchers to provide due diligence and ultimately place the most competitive insurance program at closing. Given August’s experience as a searcher himself, he and his team understand all that goes into buying a business and pride themselves on making the insurance portion of closing seamless and hassle-free.

If you are under LOI, please reach out to August to learn more about how Oberle can help with insurance due diligence at oberle-risk.com. Or reach out to August directly at [email protected].

Interested in sponsoring?

Subscribe

Join small company investors, search funds, private equity firms, business owners, and entrepreneurs in reading the Think Like an Owner newsletter and other project updates.

Share This

Facebook
Twitter
LinkedIn