I have a small holding company with about 3 ecommerce brands under it each with a different llc (75k in total profit). I have a year left in university studying business management so I familiar with business knowledge as well as having some experience managing the brands above.
I'm looking to step into real world assets and grow the holding company. I'm looking at raising purchase capital from an investor in exchange for equity in the acquired business, I want to remain 100% owner of the holding company for future reasons. The idea is to buy back the equity at a later date.
The business I'm looking at is good, the owner is old, looking to retire and it's a local business with 400k profit and 1m in revenue. He's selling for 950k.
I'd obviously be hiring a manager with industry related experience not running this particular business myself.
I know that startups get investments all the time with zero revenue (I intern at a startup accelerator, that's partnered with a vc firm) so I'm assuming if I apply the same principles in relation to acquiring this business it should be doable? I wanted to know what this subs thoughts are? I could be completely wrong and you might have a better option.