I didn't come into tire recycling with an MBA or a private equity background. I came in because family needed help.
In 2015, my in-laws ran a small tire transport business. The shredder they hauled to was closing. Big-box stores were squeezing its door-mat business, and if that shredder shut down, the transport company was going down with it. They didn't need another hauler. They needed someone who could think like a buyer.
So I stepped in and brokered an asset purchase of the shredding company. Here's what I learned doing it, and what I'd tell anyone trying to buy their first real business.
Start with the problem, not the deal
I didn't go looking for a business to buy. I had a problem to solve: keep a family business alive. That focus made every decision easier. I knew why we were doing it and what a good outcome looked like.
If you're searching for a business, get clear on your why. Are you buying a job, a cash-flow stream, a platform to grow, or a fix for a problem you already have? The answer changes what you should pay and what you should walk away from.
An asset purchase can be simpler than you think
We bought assets: equipment, the operation and the relationships that came with it. For a first deal, that structure can make a lot of sense. You're buying what you can see, touch and use, and you're generally not stepping into every old problem of the seller's company.
Every deal is different, and this is exactly where you bring in a good attorney and accountant. But don't let the words "asset purchase" scare you off. At its core, it's a list of things you're buying and a price you're paying for them.
Sellers care about more than price
The owner of a closing business usually has a lot on their mind besides the number. What happens to their people? Their customers? Their name? When you understand what matters to the seller, you can often build a deal that works for both of you.
Listen more than you talk. Some of the best terms I've seen came from just asking, "What would make this a good outcome for you?"
Your résumé matters less than your homework
Nobody asked for my credentials. What mattered was that I understood the operation, the customers and the cash flow well enough to make a credible offer and follow through.
Do the homework. Walk the floor. Talk to the people who run the equipment. Understand where the product goes and who pays for it. Know what breaks. That knowledge is worth more in a negotiation than any title on a business card.
Lean on people who've done it
I didn't know everything going in, and I didn't pretend to. I leaned on people who knew pieces I didn't: legal, financing and equipment. A first deal is the worst time to be too proud to ask for help.
That's still how I work. When a question is outside my lane, I bring in someone from my network who handles it every day.
The deal is the starting line
Closing felt like the finish line. It wasn't. It was the start of years of learning how to actually run the thing: machines, people, outlets and cash. Plan for the first year after closing as carefully as you plan the deal itself.
If you're thinking about your first deal
You don't need a fancy résumé. You need a clear reason, real homework, honest advisors, and the stomach to see it through. Blue-collar businesses reward people who are willing to get their boots dirty.
If you've got a deal in front of you and want an operator's read before you sign, that's exactly what I do.
By Steve Porter. Operator perspective, not legal, tax or investment advice.