HENRY SILVESTRI From Zero to $10 Million Net Worth How One Deal Changed Everything

Summary

Henry Silvestriz, a veteran and chiropractor, shares his experience of acquiring a medical company in the mid-market range. He partnered with his father, who had extensive corporate experience, to form Vinci Holdings LLC. They spent 21 months searching for the right company and went through a grueling due diligence process. Ultimately, they acquired a medical company that offers personal injury care, medical consults, chiropractic, and advanced imaging. They negotiated the deal terms, including the purchase price and working capital, and secured financing from a New York-based firm. Henry now serves as the CEO of the company. Henry Silvestriz discusses the personal injury aspect of the chiropractic world and how the payment process works with attorneys and insurance companies. He explains that there is usually a lawsuit involved before everyone gets paid, and it can take a long time to receive payment. However, because his practice sees a high volume of patients, they receive hundreds of thousands of dollars every month. Henry also talks about the challenges and rewards of starting his own business and the support he received from his father and attorney. He shares his plans for the future, including expanding the business and potentially selling it in the future.

Takeaways

Acquiring a mid-market company requires extensive due diligence and negotiation.
Having a strong board of advisors and a supportive team is crucial for success.
Finding financing for a mid-market acquisition can be challenging, especially in specialized industries.
The acquisition process can be lengthy and require patience and perseverance.
Personal connections and relationships play a significant role in securing financing and closing the deal. In the chiropractic world, personal injury cases involve working with attorneys and insurance companies, and there is usually a lawsuit involved before payment is received.
High-volume practices can receive significant amounts of money every month from personal injury cases, but it can take a long time to receive payment.
Starting a business can be challenging and emotional, but with perseverance and support, it can be rewarding.
Maintaining good relationships with attorneys and providing timely documentation is crucial for success in the personal injury field.
Henry Silvestriz plans to expand his business by opening new offices and acquiring other companies in the same realm.

 

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Transcript

jon (00:00.402)
Welcome to top &A entrepreneurs today my guest is Henry a friend of mine. Fellow veteran that just acquired a middle market company so welcome to the show Henry.

Henry Silvestriz (00:13.397)
Hey, thank you, John. I'm happy to be here.

jon (00:16.274)
So when did you close? When was the date?

Henry Silvestriz (00:19.637)
We close on May 30th, 2024. Yeah, so a few weeks ago.

jon (00:23.666)
May 30th, 2024. And what was that business? What kind of business was it?

Henry Silvestriz (00:28.533)
So we acquired a medical company. They offer personal injury care, medical consults, chiropractic, and advanced imaging.

jon (00:37.298)
Yeah. Now this is the business that you were, you passed to me like last year looking for funding on this. That's the same business, right? Yeah. How big was that? What was the size of it?

Henry Silvestriz (00:45.845)
Correct. The same one.

Henry Silvestriz (00:50.133)
By size you mean, I guess, the valuation? It was 26 million.

jon (00:52.242)
Yeah, the valuation, yeah. 26 million. So you're definitely in the mid -market range and you had to raise some money. So let's kind of just talk about the process here. Let's get a little background about who you are first because you are definitely qualified to purchase this. But tell me a little bit about Henry. Where's his background?

Henry Silvestriz (01:14.357)
Well, I guess born and raised in Puerto Rico. I joined the US Army back in 2001. I was an artillery. After that, I was a Dallas police officer in Texas from 2007 to 2014. Then I went to Chiropractic school in Georgia, Life University. Graduated in 2018, I started working. But I found &A and now we're here.

jon (01:39.026)
Yeah. And you kind of teem with your dad on this too, right? He's yeah. Yeah.

Henry Silvestriz (01:44.021)
Correct. Yes. In 2020, we founded Vinci Holdings LLC, my father as a partnership because I, as you could tell from my background, I don't have any corporate experience. I don't know the lingo. My father worked over 30 years in corporate America from one laboratories back in the eighties, seventies and eighties, AT &T and Telefonica de España. So he's well versed in business. So I need a help. So my father's here.

jon (02:12.082)
Yeah. Yeah. And, and he was a like a in management into those, or was he just.

Henry Silvestriz (02:18.869)
Yeah, I mean, you could say my father started as a technician. He was manufacturing million dollar computers back in the 80s. Then from there, he jumped into management in AT &T and Telefonica España. He was more of, I would say, a statistician and taking care of international relations. Yeah, so yeah, pretty much that.

jon (02:38.802)
How did that conversation go when you came to him and said, Hey, dad, you want to go buy a company, a $26 million company?

Henry Silvestriz (02:48.693)
Well, well, I didn't start with that number, but yeah, I mean, a lot of fear you could say. And it's like, Henry, you know, you know, we don't have that money. One and two, you're crazy. But yeah, but but three, you know, I love to work with you. That's pretty much he's like, let's figure it out. And and and that's something, you know, my as you can tell, I was I was away for a while and I kind of like needed my father in my life, you know, so.

jon (02:51.218)
Hahaha.

jon (03:17.458)
Yeah.

Henry Silvestriz (03:17.973)
We have an end it was more of a On -purpose venture, you know, if you will

jon (03:23.442)
Yeah. Can I ask you about that? Because the father -son relationship sometimes is, you know, we could either install the buttons or, you know, we don't really very clear to our son because you're still trying to grow the younger one. Is he clear about the instructions? Like, hey, this is your weakness. You need to get better at that. Or what is that the dynamics of the relationship?

Henry Silvestriz (03:38.837)
Mm -hmm.

Henry Silvestriz (03:49.205)
Well, sometimes it's hard, right? Because sometimes you're leading and you have your father telling you things or, you know, and setting boundaries, I guess, it's hard. But at the end of the day, I know that he has the best of interests for the company and myself. So, yeah.

jon (04:06.898)
Yeah. And you guys basically just talk about this like all day long, right? Dinner table, whatever. And you're just talking about business.

Henry Silvestriz (04:14.581)
Yes, we started that in, I want to say, well, I traveled to London in January 2020, pre -COVID with him for an &A seminar with Dan Peña. And then from there on, it was nonstop, pretty much every day doing the search, seeing the company and things like that.

jon (04:33.81)
So you started the search back in 2020. Did you focus on SMBs or how did you decide on your buy box, what your criteria was?

Henry Silvestriz (04:45.749)
Well, I guess before, I mean, I've heard of them Pena a while back, but before going, you know, in person seminar with him, I was looking more on the, my God. the loans, you know, how do you call this loans? I forgot now, the small business loans, size. I was looking at those, but then he was like, you know, you're wrong. If you're looking at those companies, you need to look for, you know, higher than $5 million in EBITDA. the way people with money will really look at you and fund you, and have less.

jon (04:59.954)
Yeah.

jon (05:13.266)
Yeah.

Henry Silvestriz (05:15.253)
less problems, you know, smaller companies, less problem, you know, more problems and vice versa.

jon (05:19.858)
I agree with him there. Yeah. I'm just curious, did you take his advice of Dan Penney has always said, Hey, go phone your board of advisors first before you do that. Did you do that?

Henry Silvestriz (05:30.389)
Yes, that was really, really hard because I messaged, if I remember correctly, I had over 4 ,500 messages on LinkedIn, just kind of text messages, emails and phone calls. I got called out, I hadn't hung up the phone. I was told I was never going to succeed, all kinds of different things. And little by little, I started picking people and they trusted me, trusted my father and our vision and they joined the board.

The board has changed. It's not that it was, you know, it's the same people now. We still have someone the same from the beginning. But that was a very grueling process to get people to trust you. Coming as an independent sponsor with, you know, little to no funds, if you will, to acquire a large company.

jon (06:02.706)
Yeah.

jon (06:15.826)
Right. I mean, where did you start? I mean, where were you, I mean, any funds at all, or you just say, you know, I got $500 ,000 or $100 ,000 or zero. What was it? Yeah.

Henry Silvestriz (06:25.141)
No, well, I mean we we had I would say a little less than 200. but that was not enough, you know to acquire such a big Yeah Yeah Yeah

jon (06:30.45)
Mm -hmm.

jon (06:34.034)
Not enough to acquire a $26 million, ultimately, right? Yeah. And so you got this board, you forming it, now you start your search. What did that, look, and you and I have been talking for two years. So I know you were looking for a business for a long time, for like two years almost, yeah.

Henry Silvestriz (06:56.181)
Yeah. Yeah. So, you know, like, like that Pena says perspective, you know, so put the board first, put the website, you know, make it look good and whatnot. And we did that and I started searching and you know, I, we, not just I, we talked to over a hundred different companies in different sizes and different areas of the, of the U S even one international, a lot of learning, you know, and how to talk to these people, what to request, how to digest the data, how to move on to the next one.

until we encountered this company in particular that we acquired.

jon (07:29.618)
Yeah. And how did you look at the deal flow? I mean, who helped you say, Hey, that's a good deal. Bad deal. That can be financed. That's not. Yeah.

Henry Silvestriz (07:38.601)
I mean on that I will digest it first and at least get the first data set of data such as the You know the revenue the EBITDA and and if it wasn't matching to what we wanted I'll just you know throw it away but once we move forward with an LOI or at least a phone call with the owner I will probably let Mark Monroy our CFO digest data, you know in detail and my father and even Tony

board member to digest the data and tell us, hey, you know, let's go for a next call, you know, let's put an offer and so on.

jon (08:14.93)
Yeah, yeah. And how many offers did you put out there? LOIs.

Henry Silvestriz (08:19.285)
I would say out of the 100, we probably drop 25, 25, 30.

jon (08:24.562)
25 and so we're 25 24 all rejected or they take a different offer or did it.

Henry Silvestriz (08:34.453)
I will say some, I don't remember the numbers, but some rejected and some of them walked away once we learned a little deeper of the company. Yeah, pretty much.

jon (08:41.842)
Yeah, yeah.

jon (08:45.618)
And this one was, where was it? Where did you find it? Was it off market deal or is on market deal?

Henry Silvestriz (08:51.765)
Home market deal. Can I say the name of the broker? Yeah. I was first choice business brokers here out of Vegas. Linda Neiman.

jon (08:54.642)
Yeah, sure, happy, yeah.

jon (08:59.698)
Look, first choice, I had to interrupt you on this. The first choice is I have two other clients, students right now looking at first choice businesses. Yeah.

Henry Silvestriz (09:05.461)
Mm.

Henry Silvestriz (09:09.173)
Yeah, yeah, I mean, they were top notch. I will say Linda and Jeff, they're a married couple. They were phenomenal at hand holding the sellers, also bringing us in, you know, like making us a couple, if you will. That really, really worked.

jon (09:24.146)
Yeah. And that was, you found this business, it's basically in line with your background, right? And your dad's background and your, yours anyway. And, and then you place an offer on it. Was it asking price or above or below it?

Henry Silvestriz (09:33.301)
Well, mine, yeah. Mine, yeah, yeah.

Henry Silvestriz (09:45.077)
It was above and the decision to go above was because the board, I mean, we were told, right, and again, this business, they probably had another offer and I believe they did. So we went a little over, they were asking 25, we went 26. It was fundable. So we went with that offer.

jon (10:00.497)
-huh.

jon (10:05.426)
So the 26, the cashflow from the business could handle the $26 million. Yeah. And the, let me, let me kind of make a distinction here. You're in mid market now. So all the, are you buying the stock of the company versus the assets of the company?

Henry Silvestriz (10:10.709)
Yeah.

Henry Silvestriz (10:25.045)
What the assets?

jon (10:26.386)
the assets. you still bought the assets. Did the working capital come with it or did you have to negotiate that or how?

Henry Silvestriz (10:32.309)
We negotiated, I want to say 250 ,000 of working capital to be left until that counts.

jon (10:37.426)
huh. And how did you find that? It's just like, you just per spend per day and how the money comes in and.

Henry Silvestriz (10:47.669)
We, I mean, through, it took a long time, John. It took 21 months to close this deal. So yeah, yeah, it was, it was grueling to say the least. So, you know, we learned a lot about the company through diligence and the waiting period to finish this. And that was the max that we were willing to leave behind. We were asking for five, so it left 250. That's enough to cover.

jon (10:54.13)
21 months to close the deal.

Yeah.

Henry Silvestriz (11:15.797)
I will say 75 % of a month expenses. But we came in, we were funded in a way that we had, I wanna say almost $1 .5 million in excess after the initial equity that we paid for. So we're strong on that side.

jon (11:33.362)
All right. So was there any sticking points to this other than working capital that didn't kind of jive like you're negotiating this and they didn't want that, something different?

Henry Silvestriz (11:46.933)
Well, I mean, initially they wanted 18 .2 million at closing and do, you know, that's a lot of cash and do the rest as a seller's note. And we negotiated vice versa. You know, we've pretty much flipped it. We pay 7 .5 at closing. We're doing 10 .2 at a seller note and the rest is of equity. They've retained 30. But we, you know, we settled to buy that extra 30 % in year three.

jon (11:52.658)
That's a lot of cash. Yeah, I get it. Closing.

Henry Silvestriz (12:15.797)
at whatever evaluation, you know, we, we, we have at that point.

jon (12:20.722)
Yeah. When you signed that LOI, did you already have the capital resources in place? People behind you saying, yeah, we'll fund you on these deals.

Henry Silvestriz (12:31.893)
I had a, I would say a soft yes, but it was from a banker, I guess, out of Dallas. And the thing is he was not well -versed and his investors were not well -versed in personal injury, which John, if there's anybody out there looking to buy personal injury, just send them away, we'll do it. It took 21 months because it's personal injury. If this was regular major med, gastro or whatever else, whatever specialty, we've...

jon (12:52.37)
Heheheheh

Yeah.

Henry Silvestriz (13:01.685)
could have fund this in months versus 21 months. But yeah, I did not have the full backing, if you will.

jon (13:10.066)
Yeah. So how did that look to the sellers? When you signed the LOI, did you know, have any sense that like we're going to have to keep extending the LOI or?

Henry Silvestriz (13:22.549)
Nobody knew, you know, I didn't know I learned that post Loi that these people were not going to move forward but what saved us I would say was that the the CPA of the sellers was ill and she failed to produce documents in a timely manner which the QV took I want to say a good like 10 months to be produced because our accounts couldn't get it yeah because

jon (13:24.626)
Yeah.

jon (13:49.33)
10 months to produce the financials.

Henry Silvestriz (13:52.245)
she was pretty much dying with cancer. So, yeah, it was uncomfortable for everybody and, you know, everyone was praying for her, but that's why it took so long on that side. Yeah.

jon (13:54.77)
I'm sorry to hear that.

jon (14:02.834)
Yeah. And now were you working, you know, like at a W2 or your own business during this 21 months? Like where did the revenue come to pay your bills? Like, yeah.

Henry Silvestriz (14:14.965)
Yeah, I was working as a, you know, I was practicing car practic and in DFW in Dallas, you know, Dallas, Fort Worth. I have my own little business and, you know, trying to make it, I had enough money, you know, to get by every month. and divided my time, you know, to, to board meetings and whatnot and working, but yeah, that's pretty much how I did it.

jon (14:36.626)
Yeah. So where did you ultimately look and I'll let the audience know this, but, you know, when Henry ping me, he goes, you know, Hey, look, I'm need a little help raising some capital for to close. Like, and it was too short for me. He couldn't do it and reach out and say it's too short, but where did you ultimately find the money to raise it?

Henry Silvestriz (14:56.533)
So that's a, I kind of disclose a lot of information I would like to hear. Yeah. So pretty much we had a backer, an initial backer that was partnering with a big hedge fund and they backed out and they, the thing is they wasted close to $20 ,000 of our money. And...

jon (15:00.242)
No, just keep the names. Keep the...

jon (15:18.866)
Where did they spend your money? I mean...

Henry Silvestriz (15:21.621)
In their own due diligence, they have to do legal and audit and things of that nature. Personal background checks.

jon (15:31.954)
This is the, I want to bring a point because you sent me a quality of earnings. Did you pay for that? Was that the quality of earnings that you paid for? Yeah. So when he sent me the deal, he had a quality of earnings report. It was just a stellar looking, very profitable business. Yeah.

Henry Silvestriz (15:39.541)
That's what we pay for, yeah.

Henry Silvestriz (15:48.725)
Yeah. Yeah. So after we lost that money, I had to raise, you know, we got married with another partner, if you will, and we have to raise, I want to say 35 ,000. And I found that money from the board. I found the money from friends or family and even our banker invested money because they know the potential. So they were like, well, you know, we want in. Yeah.

jon (16:09.682)
Yeah.

jon (16:13.682)
What was your, you and your dads, like did you just keep focusing forward or was it times and periods where you go like, my God, we should give it up on this. It's too hard or what?

Henry Silvestriz (16:24.757)
We, I mean, me and my father never stopped pushing, but the sellers wanted to walk away many, many times. And I understand, you know, at that standpoint, it was just really, really hard for them, I guess, also the waiting period. But yeah, we kept pushing. Yeah.

jon (16:43.922)
Yeah. And why did the sellers want to sell?

Henry Silvestriz (16:48.053)
Retirement so one of them is older and the young one, you know, he didn't really want to retire but he just Didn't want to get in depth to acquire the other 50 % So he said well, I'm just gonna get out and do my own thing after that Yeah other ventures

jon (17:02.45)
Yeah. And, and what was, what's your role and your father's role when you're taking over the company?

Henry Silvestriz (17:11.349)
So I am acting as CEO right now. My father is not in a, I guess, W2 position. He's only at the board level of the New Co. Yeah. Correct. Yes. Yes, yes, yes.

jon (17:19.282)
Yeah.

But a piece part owner of the business though. Yeah. Yeah. And how much of the business do you own?

Henry Silvestriz (17:28.917)
So it's a great question. So we came out, I want to say at 42 % right now. Remember they're keeping 30 and the rest is shared between some shareholders. Yeah, that's the way it came out. But once we're at 30, you know, mine's going to increase as well. So it's not terrible.

jon (17:41.778)
Yeah.

Yeah. So let's go back to the finding. You finally found somebody to support you with the financing. I mean, what kind of process was that? You got a great deck, you got a quality of earnings, and how many pitches did you have to do? How many people did you reach out to?

Henry Silvestriz (18:04.785)
I mean, bankers and brokers, I guess, I was certainly 15. Everybody wanted money, you know, but they couldn't money upfront. We finally found one in New York. So Boston, I think is Boston. Yeah, CFC, Commercial Financial Consulting. That's the name. And they, you know, they've really...

jon (18:14.098)
money upfront. Yeah. Okay.

Henry Silvestriz (18:33.045)
told us, hey, we can find this money. And within 30 days, it was evident they couldn't find it. But we already paid a substantial amount for them to find it. But they say, hey, don't despair. Just give me a few days, a few days, a few days. And after like two weeks, they found this other person that when he finally got on the phone with us, he's like, Henry, you know, there's four people in the world that will fund this deal in personal injury. I know all four. Give me a few days. You know, he had all.

jon (19:01.074)
Do you think that was true or you just think he was blowing sunshine?

Henry Silvestriz (19:02.901)
yeah, no, no, no, no, it was true in two weeks. He came back with a, with a soft yes, with the initial partner on, they engaged immediately, you know, to do their diligence, their audit, you know, their legal side and their backgrounds. Then they pulled out and he's like, Henry, the second person is coming and they're going to do it. So that's, that's how it happened. but yeah, everybody else that I talked to, the thing is in personal injury, even, you know, even our first accountants.

They screwed the QV royally because nobody understands that in this business. It's not net 15. It's not that 30. It's not that 60. It's not whenever you get paid. So yeah.

jon (19:41.842)
So tell me a little bit about the personal injury. So, and that's in the chiropractic world.

Henry Silvestriz (19:48.981)
Medical caro imaging, yeah, it's all the same because, you know, we see a patient, but we're not, he or she is not paying us, you know, who's paying us is the attorney, which if you go even further is the car insurance company from the party that injured our patient. So, you know, we see the patient. Correct. Correct. Yeah. Yeah. And this company, our average, I want to say is 930 days.

jon (20:06.674)
Yeah.

And usually there's a lawsuit involved before everybody gets paid, right? Yeah.

Henry Silvestriz (20:18.773)
for us to get the money after we finished care. But because the pipe is full of patients, we're seeing 200 to 300 new patients a month right now. We plan to increase that fairly soon. It's been full for so long that every month you get hundreds of thousands of dollars every month from checks, from all of those cases.

jon (20:43.953)
Yeah, now is it lumpy or is it pretty consistent?

Henry Silvestriz (20:48.053)
It's cyclical, but now because again, because if we, you know, if you and I open an office right now at the beginning, it's gonna be really, really bumpy. But once you have X amount of patients in the pipeline, that's, you know, you finish care, it's just a matter of waiting. You just keep seeing patients, putting more patients in the pipeline and that's it.

jon (21:04.722)
Yeah. And how do you do that? is it advertising or is it to have conversations with attorneys that.

Henry Silvestriz (21:12.085)
It's a little bit of everything. You have to get your name out there. Advertising and relationships. You have to maintain relationships. But the best way to do that, other than you're doing a handshake deal, is to always be on time with the soap notes, the billing. Some doctors take months to supply the notes to the attorney and then that slows down the process. They don't like that, of course. Yeah, it's just being on top of things and good diagnosis, good notes.

jon (21:36.05)
Yeah.

jon (21:40.402)
So there's no net, there's whenever they pay. Like how do you know that if a lawsuit doesn't come through?

Henry Silvestriz (21:51.285)
Well, that's a good question. So.

jon (21:52.818)
Do you just write off a lot of work?

Henry Silvestriz (21:55.669)
Yeah, yeah, because the thing is a lot of people lie at the beginning. They go to the lawyer, say, hey, you know, I got hit, but they were the party that caused the accident. So, you know, we have to write those off in the first few weeks, you know, maybe a month of care because they lied, you know, but what can you do? You just go to the next one.

jon (22:14.77)
Yeah. Yeah. And you have enough customers in the pipeline to not, you know, you're going to account for that. That's okay. We'll write it off. Yeah. And how did you feel through this process? Like you, you were okay with, Hey, if it doesn't work out, I'll go back to doing chiropractic work in Dallas and yeah. Or what was it?

Henry Silvestriz (22:23.637)
Yeah.

Henry Silvestriz (22:33.509)
Well, I guess, I mean, I moved to Vegas in January 25th, this year, 24. I was hoping to close in February and, you know, by May, I still didn't know if it was going to close. A lot of things happened through, you know, the process and I burned the ships, you know, it was a closer, I'm going to move to Russia or Argentina. I know, I want to go somewhere and start again.

jon (22:43.474)
Yeah.

jon (22:59.986)
Heheheheh

Henry Silvestriz (23:02.709)
Yeah, it was very emotional for everybody, mostly for me, but also for myself. Definitely very rewarding, I would say. It's not an experience that, for the faint of heart, you just have to be ready for whatever comes out of it.

jon (23:14.93)
Yeah, I know.

jon (23:19.09)
Yeah. And are you married kids? No. Was that, do you think that was probably a benefit that you didn't put your wife through that or, or whatever? Yeah.

Henry Silvestriz (23:21.141)
No, lovely.

Henry Silvestriz (23:28.917)
I mean, that can go both ways, right? Like I don't have any support, you know? But at the same time, nobody's suffering with me. So like you're saying, yeah, it wasn't easy. Yeah, it wasn't easy.

jon (23:33.234)
Yeah.

jon (23:36.946)
Right, right.

jon (23:41.906)
And you have these conversations with your dad like, my God, is this, you know, yeah, yeah. And what was your dad, what kind of like wisdom and advice did your dad give you to keep the faith?

Henry Silvestriz (23:46.661)
yeah, yeah, yeah, yeah, definitely.

Henry Silvestriz (23:57.237)
I mean, just be patient, you know, the chips are gonna fall where they're gonna fall. My dad is very, he thinks like an engineer, if you will, like a statistician, you know, very methodical. So, you know, taking that into account, it's just whatever's gonna happen is gonna happen, if you will, and praying, a lot of praying. Yeah.

jon (24:19.506)
Yeah. So you are now CEO of and own 42 % of a $26 million valuation company, which makes you gone from, well, I don't know what your net worth was before to now like $10 million. How does that feel?

Henry Silvestriz (24:39.477)
It's unreal. Yeah, I will say that's the only way I can express how that feels. Yeah, it's unreal. That comes with, you know, bigger problems too, you know, but also rewards. But I'm confident we're going to get this, you know, this company in the next few years. I will say we can easily exit in 200 million if we put our, you know, our pants up, you know, and buckle up in the next five years.

jon (24:42.994)
hahahaha

jon (24:49.938)
Yeah.

jon (25:07.89)
So what does that look like? Are you just trying to cruise business there or are you going to go out and find other personal injuries in specific?

Henry Silvestriz (25:14.645)
We are already doing that, looking at different targets in the same realm. I also want to look at suppliers to bolt onto this company, supplements, VME companies, manufacturer companies, for example, of tennis units. I'm looking at a lot of different things. So ultimately, let's say by next year, I may divorce the company as a CEO and go back into Vinci Holdings so I can keep putting my efforts into the growth.

jon (25:33.074)
Yeah.

jon (25:44.178)
And you would hire somebody to run the business? Yeah.

Henry Silvestriz (25:46.325)
Right, right. Yeah, maybe year two of ownership. It depends on how fast we can buy another one. But we have a few in our sites. We're about to write LOIs. Yeah, so yeah.

jon (25:59.79)
And this guy that said there's only four people can do this and I know them. Is he backing you for all these new acquisitions?

Henry Silvestriz (26:07.605)
He, I brought him in the company, you know, he's our, yeah, I brought him in. Yeah. He's the chief strategy officer. He, he's became my, I will say like my, my big brother, you know, he's a little older than me. he's been CEO of public companies and, and, and private companies in the healthcare field. so he knows everybody in the major med side. He's working PI before buying a paper for surgery. so he's well renowned, you know, and, and, and yeah.

jon (26:09.682)
he's in the company. Fantastic.

jon (26:33.97)
There's a little bit of alignment there. Did he offer that or did you offer that to him?

Henry Silvestriz (26:42.101)
A little bit of both. Yeah, a little bit of both. And also from Mark and even my father, because they saw the value that he was bringing into the transaction. And we look among ourselves on the board, it's like, hey, we don't have that. He's not part of VINCI, but he's part of the NewCo, if you will. Yeah.

jon (26:43.666)
Yeah.

jon (26:59.794)
Yeah. So I got to kind of ask you, what was the weirdest or something like you unexpected part of this process that you, you weren't, you, you weren't even thinking about prepared for it. Cause I would say if like you do about a hundred deals, you're, you're, you're always prepared for the unexpected, but this first big one, what was that? Yeah.

Henry Silvestriz (27:19.541)
Yeah, so I mean several things. One of them, you know, having them pull out of the deal when we were about to close in weeks, because the thing is they had other companies that were going bankrupt, so they couldn't fund this one. Two,

jon (27:38.578)
So what was happening there? Some buyers were trying to buy it and then they didn't have the money or what was it?

Henry Silvestriz (27:44.277)
That's one of the things but that's something I cannot fully fully tell you. Yeah, that one I will say post -closing fires. I wasn't ready for a lot of fires. Yeah, but I can disclose everything post the call. I will tell everybody to be prepared for the unexpected. It's just you never know what's going to happen. Find a good attorney and I use Ferguson Braswell out of Dallas.

jon (27:48.69)
Sure, sure.

jon (27:59.314)
Yeah.

Henry Silvestriz (28:14.389)
But they've been.

jon (28:14.898)
And they, let me ask you about this attorney. They were well versed and skilled at and A transactions, right? Yeah.

Henry Silvestriz (28:21.365)
yeah, yeah, it's a full, yeah, yeah, they have a full suite of attorneys. International, I mean, they're not that big, but maybe like 200 some attorneys, I would say. But they've been very good. And what distinguishes that firm from others is that for you to get hired as an attorney there, you have to be a business owner. They don't hire non -business owner attorneys to be, you know. Yeah. Yeah. Yeah. Yeah. And yeah, but.

jon (28:42.738)
You have to have some other side business running a business. interesting. That's an interesting.

Henry Silvestriz (28:50.805)
They've been very, very good to us. They took most of the money post -closing too. So that was special for us to find that. Their deposit wasn't a lot. I mean, it was quite a bit, but it wasn't that much. Yeah.

jon (28:59.794)
Yeah.

jon (29:05.042)
Yeah. And the, your accountant or your &A attorney, was this the same guy as running the business in the business or is there, there are two difference. So there's the, the &A attorney that evaluates the deal. Can it handle the cashflow, handle the debt that's we're going to put on it. And then there's the the attorney, I mean, the accountant inside after the business post -close.

Henry Silvestriz (29:15.669)
Thank you.

Henry Silvestriz (29:27.605)
So we, yeah, so they had an &A guy and they had a finance attorney, you know, in the bill. And we used Victor Tilly on the QV of things, you know, QV. Yeah. Yeah. Yeah. Yeah. That's what we use. But Ferguson has been great. Justin is the name of my attorney, Justin Shelton. He's been really, really good. And we engage him to be corporate counsel post -closing. So.

jon (29:33.01)
Yeah.

Yeah, Baker Tilly. Yes, that's a top, top five. Yeah, guy. Q and a guy.

jon (29:48.21)
Yeah.

jon (29:52.69)
very good. So,

post -closing, was there anything about what you are experiencing now, the hiccups, the little fires, that you probably would have seen beforehand if you have a little more experience doing it?

Henry Silvestriz (30:11.573)
I will say nobody was ready for it. Yeah, no, no, no, my attorney or Andy or Mark, we were not expecting a lot of things that we're facing. But yeah, it's gonna be it's gonna work for everybody. Yeah.

jon (30:13.522)
Nobody was ready for it. Yeah.

jon (30:26.034)
Yeah. Well, the reason I, you know, like your dad, he's been in large companies. He knows process and some of the big companies worked there was great, great processes like, or EOS or something like that. So you, did you not see that or did you not ask the questions? I just curious, like, or some new event came up and changed the kind of dynamics of the new events. Interesting. Like.

Henry Silvestriz (30:36.853)
Hmm.

Henry Silvestriz (30:51.381)
I will say new events. Yeah. Mm -hmm. Yeah.

jon (30:56.434)
big events like, you know, the U S government changes the way lawsuits are done or what was it?

Henry Silvestriz (31:02.165)
no, just I will say zero transition period. That defines what I'm trying to say here. In regular &A, I will say some folks will give you a month, six months. You don't really want more than that, right? Because you want the old CEO to go away. So the people can see you as a new CEO. But this was a zero day transitional period. And hey, here's the keys to the offices. Good luck, Anna.

jon (31:09.49)
Yeah.

jon (31:30.034)
And then they took off, did they stay with the business for a little bit or?

Henry Silvestriz (31:33.205)
They're in a capacity of, you know, they're closed a fungal way, you know, but that's it. Yeah.

jon (31:40.498)
And that's both owners. One said it, you know, one was retirement. The other one was not retirement age, but yeah. Yeah.

Henry Silvestriz (31:45.813)
Yeah. I mean, they're great folks, you know, but it was, you know, I'm here by myself and now I'm handling this business that I really don't know a lot about. I mean, I know the business, right, in general, but this particular business, yeah, it was, it was different to just go there.

jon (32:05.266)
And what are you going to do to kind of surround yourself with people that, I mean, you have you with your attorneys, your accountants, that capital raise guys now in the business and your dad, do you feel comfortable running the business with all these advisors? Yeah.

Henry Silvestriz (32:19.317)
yeah, 100%. Yeah, 100%. I mean, the business was running by itself with the, I would say the former manager of the offices. We promoted her to COO. She's phenomenal. Shannon is outstanding, you know, a person and employee. We gave her equity. So now we have, you know, the minds of, you can say Andy with the strategy and growth, you know, for funding. Mark as CFO.

and I'm the crazy guy, the crazy doctor, if you will, on top with the vision to expand the objective data. We're doing diagnostic testing and training the doctors, doing uniformity. It's a brand at the end of the day. And I know every patient is different, but the approach should be the same. And that's what I'm bringing in. These doctors, they're great, but they were doing their own thing in different offices, and we want to improve care. We want to be the best. So, yeah.

jon (33:14.194)
Yeah, are you making changes in the first 100 days or you just try to figure out?

Henry Silvestriz (33:18.453)
Little, little, yeah, I don't want to like bound people with a lot of changes, you know? Yeah. Yeah. Yeah. I mean, we have a, I'll call it the Dead Sea Scrolls. That's what I call my to -do list, to -do list of things we're working on. We're going little by little, one thing at a time. We prioritize everything and that's a good way to do it, you know? Yeah.

jon (33:22.706)
Too many tweaks where you actually screw it up and you don't know what you fixed or broke. Yeah.

jon (33:40.978)
Yeah. Yeah. And then your future plans for this, how you're familiar with the PE pyramid where it kind of jumps up. You got $15 million in EBITDA. It kind of jumps up in the multiples and the arbitrage. How do you, are you actually going after other very similar businesses or completely different, but will they add to the, the multiples arbitrage?

Henry Silvestriz (34:06.933)
Yes, yes to both. So right now we're the I would say six, 6 .5 and every day. If I add just pain management to this clinics and don't open any money other office, our every day is going to grow by nine point something million. So we'll be in the 15 right away. Just adding pain. We have goals of opening two more offices this year, one here and one in Reno.

And we're really looking at Texas to acquire another firm there in San Antonio, even Dallas.

jon (34:43.442)
And you got LOIs, you've got people looking down there for, yeah. Yeah.

Henry Silvestriz (34:46.837)
We don't have otherwise yet. We're talking Yeah, and also growing across state lines because the thing is this this attorneys, you know They they have offices in other states, but they love us, you know, so if we did we've been told already Hey, you open here. We're gonna fit you too. So all we have to do is just open doors, you know So we're looking at those different situations like and like I told you I'm looking at DME companies supplement companies manufacturing that way I can

jon (35:06.482)
Yeah.

Henry Silvestriz (35:16.853)
I label my own and also sell to other doctors that I know and so on.

jon (35:20.562)
Yeah. And your, your strategy guy that came on the capital guy, he said it, look, if we get this to 15 million, even above it jumps up to 13 X and he knows who he could sell to with exit at mine. Okay. He's got customers that would buy your enterprise. Yeah.

Henry Silvestriz (35:24.181)
Mm -hmm.

Henry Silvestriz (35:35.573)
Yeah. Yeah.

Henry Silvestriz (35:40.277)
Yeah, yeah, I see this John. I mean, do you know that some people buy and sell businesses? I don't know a car watch or whatever else you can buy. I see this as a platform. I don't know if by year five or even seven, I'll get rid of it because I can just keep it. I mean, it runs by itself. It was run by.

jon (35:59.154)
And it's really cash flow. Guys, I've seen the quality of earnings from Tilly. It's very throwing off a lot of cash. It's yeah.

Henry Silvestriz (36:03.293)
Yeah, so that's why if we fix what we're gonna fix if we add what we're gonna add and acquire the companies we're looking at I don't see a reason why you know because you can just retire and just sit down and Yeah, pretty much

jon (36:17.522)
Yeah, run a little holding company like a little Warren Buffett. You're throwing off some cash, right?

Henry Silvestriz (36:23.893)
Yeah, that's the ultimate plan on that. Yeah, we'll see.

jon (36:27.282)
Yeah. Yeah. And I got to go to you personally. How has this adventure changed Henry? I mean, like who, who are you were then, you know, two and a half years ago, like who do you think, who are you see yourself now?

Henry Silvestriz (36:48.413)
that I guess reality really hasn't set yet. I will say back then, before searching, I was very, very frustrated with my life. I was a police officer making decent money back in 2008 until, I don't know, 2014. And then as a doctor, I was making less money than before. So I was like, my God, what am I getting myself into? And I'm getting older, that's not where I want to be.

jon (37:11.026)
That's odd. Yeah.

Henry Silvestriz (37:18.101)
I know I have skills that that will not be used, you know, in that capacity. But now I still think that reality hasn't set in, for me, you know, I don't know what to say, but I'm the same person. I'm still humble. I plan to stay that way. And I want to tell, I want to make, for example,

jon (37:32.69)
Yeah.

Henry Silvestriz (37:43.765)
One of my plans is to give the doctors of the offices, phantom shares. So upon an exit, if we get there. And the key players, I may give equity down the road, not just phantom, but I want to do things, right? These people didn't have benefits. I want to, my board, I want to retire everybody. Like if you're with me, I want to retire you. That's the kind of person that I think I am. So I don't know if that explains that, but yeah.

jon (38:06.482)
Right.

jon (38:10.066)
Yeah, no, it does. I mean, just tell us about a lot about your character right there. Like you want to share the wealth, what you're creating. People are along for the ride. Henry guys, man, I really, really appreciate you sharing your story and thank you for reconnected with me about this whole process. Cause I feel like I was like, you know, if you were from a distance, like, Hey, you asked me.

Henry Silvestriz (38:17.077)
Yeah. Yeah.

jon (38:34.898)
To help you find some money, you help me closing a number of times we've moved back and forth and then, and then you did it. And I am congratulations. I am proud of you. Yeah.

Henry Silvestriz (38:43.989)
Thank you. And I want to add to that, John, thank you for your teachings. You know, I listen to you all the time on LinkedIn and I started my LinkedIn profile from what Pena told me. But then you came along and I was like, Hey, I got to listen to you because you need the ins and outs of LinkedIn. And so you've been instrumental for this too. So if somebody's watching that still don't buy your stuff, they need to. That's just the truth. Yeah. Yeah. Yeah.

jon (39:05.874)
thank you so much, Henry. I appreciate that, man. All right. Thanks for being on the show.

Henry Silvestriz (39:11.092)
Well, awesome. Thank you so much, John. We'll see you. yeah.

jon (39:12.946)
Hold on one second. Let me I got a