I’m going to be very open in today’s blog post. I have a vision to own multiple tooling manufacturing companies through a holding company and eventually take this holding company public. I am shooting to go public within 10 years of the first acquisition. I have over 12 years of manufacturing experience, and 5 of those years I have dedicated to learning everything I can about M&A, business ownership, networking and how to acquire a company.

Just recently, I was listening to an audiobook detailing how Jeff Bezos raised $1M in exchange for 20% of Amazon. This was in 1995 and was the seed money Jeff needed to get Amazon off the ground. He reached out to friends, family, strangers and investors and was able to raise the capital necessary to move forward with Amazon. For every yes Jeff obtained, he heard 3 noes. Nevertheless, he did it. He did it before the internet was a thing. Think about that. He raised $1M for an internet company, before the internet was a thing. Every investor asked Jeff, “What is the internet?” when Jeff pitched the idea, and he still was able to do it.

Why do I write all of this? I believe I have a strong thesis for my business. Here’s what I believe:

1. There is a demand for tooling companies in America because of onshoring.
2. There is fragmentation in the lower middle market (LMM) tooling manufacturing segment. Over 100 tooling companies in the United States that make between $2.5M – $5M in revenue
3. These LMM tooling manufacturers know how to make tooling, but do not know how to efficiently sell their tooling.
4. Most LMM tooling companies get revenue from repeat business, word of mouth or tradeshows.
5. Customers who want to buy their tooling stateside do not know of these LMM tooling companies. If potential customers don’t know these tooling companies exist, how can they buy from them?!
6. I have over 12 years of experience selling directly to the manufacturing industry. I know I can sell this tooling and capitalize on the demand that is currently here.
7. My group can acquire a tooling company that already has the fundamental tool making capabilities in place and we will add the sales systems needed to capture the opportunity.

In summary, there’s a demand and there are companies that can meet this demand; however, these companies don’t know how to capitalize on this demand. I plan on acquiring these companies, implementing a direct sales system and capitalize on the demand.

In order for me to do this, I want to do what Jeff did. I want to raise $1M in exchange for 20% of my holding company. I want to use $400k – $500k of this capital raise to do a leveraged buyout and acquire the first acquisition. I plan on utilizing the remaining capital to implement the systems needed to capitalize on the current demand. In 5 years, just like Jeff Bezos did, I plan on doing a Series A capital raise. With this capital, I plan on acquiring multiple tooling companies across the nation and implementing the systems we developed during the first 5 years. Within a 5-year period, I believe the holding company will be large enough and we can go public.

My thesis is strong. I know this can work. I know I am the right person for this mission.

So here is the rub. Why am I afraid of doing this capital raise? What if I can’t raise the capital? What would my friends and family think of me? What if I let them down? What if, what if, what if?

These are interesting thoughts that are bouncing around my mind. I don’t have many answers to them. There are 2 main rebuttals that push me forward. The first is, I have a very strong plan and if Jeff could sell his vision of Amazon in 1995, before the internet… I can sell my vision of acquiring a tooling company that already cash flows and has systems in place.

The second thing that keeps me going is, “I WILL NOT STOP!” I recognize you fear. I acknowledge your presence. However, you are not strong enough to dwindle my desire to bring my visions to reality. I will not stop. I will not quit. I will not give in. If I have to go and raise capital for an amazing idea, so be it. I will raise that capital. This is my journey. This is the path I have chosen, and I will not stop.

And with those words, I end this blog and transition into making my investor pitch deck. Thanks for listening!