[quote=patientrenter]How much money under management do you think would make it worthwhile, Allan? Half-serious too…..[/quote]
PR: Good question, and one that I don’t have an answer to right off the top of my head.
I’ve been on the lookout to buy a California B class contractor and perhaps a specialty subcontractor in electrical (low voltage) and mechanical. I was stunned at the response when I put feelers out there; the number of contractors that are out there hurting is staggering.
That got me to thinking about the factoring business again. Many of these contractors have decent enough backlog and Accounts Receivable, it’s the cash flow that’s killing them right now, especially since the banks aren’t lending or extending lines of credit.
I’d have to think that the same holds true for a wide variety of small- and mid-market companies. The problem would be running down the opportunities and then performing the requisite DD. There are a ton of assets and companies available through BK proceedings right now, too.
I would think the investment pool would be driven by what is the best market or set of opportunities to pursue and then determine the best economies of scale to make significant profits.
