Our Next Brand Acquisition: Thinking Out Loud
Notes from the founder's desk on what we're looking for
Deacon here with some candid thoughts about our journey of buying and growing brands.
Quick update on Dr. Barry's first: We're still in that exciting (and sometimes nerve-wracking) phase of bringing a business back to life. Think of it like buying your first rental property - you've got the mortgage payments covered, but you're not exactly rolling in cash flow yet. And that's okay, because we're playing a longer game here.
But here's what's really been on my mind lately...
Travis and I have been having deep conversations about what our next acquisition should look like. And I'll be honest - our criteria has evolved since we started this journey.
Initially, I thought we'd just look for businesses that needed help with the things we're good at (direct response marketing, operations, etc.). But now? We're thinking bigger.
Here's what we're looking for in our next brand:
1. Strong product development (because frankly, that's not our superpower)
2. Operational inefficiencies we can fix (our sweet spot)
3. Strategic fit with our current portfolio (health & wellness)
But here's the interesting part - we're not just looking for "fixer-uppers." We're seeing opportunities where solid brands are doing well but could be doing exponentially better.
Like one brand in our ecosystem that bounces between $30K and $100K months due to inventory issues. With proper capital and our systems? That could be a consistent $150K/month business.
Speaking of capital... yes, we're exploring all options. Owner financing (like we did with Dr. Barry's), traditional lending, even strategic investors. And while giving up equity isn't our first choice (it's expensive money, after all), we're open to it if it means bringing on partners who can accelerate our growth.
Our goal? Build this to $10-15M in EBITDA. Could we sell it then? Yes, and probably at a 10x multiple. But if we build something truly special, would we want to?
Some people have asked if we're disappointed that we only have one brand right now. Not at all. We’re just starting, and figuring it out and getting the foundation right is critical. We're methodically building our systems, proving our model, and getting ready for what's next. Rome wasn't built in a day, and neither are great brand portfolios.
That said... we're actively looking. If you know of any supplement or wellness brands with:
Strong products but messy operations
Cash flow challenges
$1-3M in revenue
Owners ready for their next chapter
Let's talk. We might be able to help. Hit us up here or at Freedom Brands.
Curious: What criteria would you look for in acquiring a brand? Hit reply - I'd love to hear your thoughts.
Until next time,
Deacon
P.S. Did I mention we're actively looking? 😉