Shaan Puri’s Post

I have a new hero and her name is Sarah Moore. • Under 30 years old • Had no money, no experience. Biggest asset was her car (a RAV4) • Spent 1 year hunting through 100,000+ businesses to find ONE to buy • Bought a $20M+ business called Egg Carton”, all debt Sarah goes to Harvard. Decides she wants to buy a business. Creates a private equity fund (PE) But.. • her "office" was the school library. • her "fund" was non-existent as she had no money • her "analysts" were 50+ interns she found on Craigslist I asked her how she paid for life during the search: She said she participated in random research studies to make side $$. But she went legally blind from a deodorant study and had to take a break until she could see again. Sarah wanted to buy a biz with all debt so she could have 100% ownership. but she also had no collateral. so she had to find a business that was SO stable that it could itself be the collateral. she had her 50+ interns look through >400,000 private companies in a year and a half. she was looking for: • high historical cash flow • high barrier to entry Eggcartons had both. 1/ Cash flow - a lot of farmers / comapnies are selling eggs 2/ Barrier to entry - the old founder already copped the best domain name But to make his moat stronger, he bought the closest 100+ domains (ie. eggcartin) ok, so she found the perfect business. But how did she convince them to sell? "In summary, I harassed the owner until he replied. When we actually met, we hit it off and came up with a valuation together." she reached out to 100+ banks pitching her crazy idea. 99% told her to f*ck off. One of them threw her a bone. an uncollateralized loan: 75% in bank debt and 25% in the seller's note. she had done it. she owned the business. Eggcarton's website looks like it's straight out the 1970s. It might not look like it, but 40% of their revenue actually comes from clients like: • SpaceX • Boeing • Disney • Crayola The crazy thing, you can't find anything about her online. I got the deets because I e-mailed her an empty g-doc with 5 questions. 20 days later, she filled them out with details about her crazy life.