Mark Moran: Fantastic. Great question and great answer, Eric. Now I’m going to ask the last question of today. Eric, the last earnings call it ended with you talking about your vision for Empire Building. And I wanted to ask what your update is on that? And what the vision is now moving forward?
Eric Langan: I think we laid that out pretty well on Slide 15 and 16 on what we’ve been doing and how we’re doing it. So have you looked at that. I think we have to continue to basically do what we do. And that is used fifth grade math to make sure that as we make these investments that we have an expected cash on cash return. I know the construction stuff. I’ll be honest, I hate construction. I hate those new things. I’d rather just go out and buy Nightclub-after-Nightclub-after-Nightclub. Unfortunately, it’s just not that easy. Someone’s saying to me, well, you should just have a whole stream a whole line of clubs line up. I said, well, we kind of do, but you don’t have sellers. So they start doing comparisons to Carnation and Waste Management and AutoZone and all these roll-ups.
And then, I said, yeah, I have 500. And I already own 50 of them, so there’s, about 450 targets. You’re talking about acquisitions where they had 45,000 targets. Yes, it’s easy to line up two or three acquisitions a month or a quarter when you have 45,000 targets. When you have 450 targets and of those 450 targets there’s multiple players, multiple of multi-club operators so you’re really probably talking about less than 100 individuals that I have to do deals with, so it does take a considerable amount of time. And you’ve got to have people that are ready to sell. I know a lot of these guys are older and they are thinking about it. The multiples as we started paying four times to five times multiples instead of just three, because we used to — we were just stuck at just three for a while.
So certain locations have probably worked more, until we started off of that and we started getting better acquisitions. I think we’re going to continue to see that. It’s just — it takes time. We’re going to buy — an every year. Some will be single-clubs some multi-clubs. But I’m very confident in our three-year plan here to really roll this up to the next level and grow from $100 million in EBITDA to $250 million in EBITDA at four times — $600 million at a four times would be $150 million additional EBITDA. So I think — so on a shooting for the moon. Okay, well, I’m shooting for the moon. And I only get into the stratosphere. So I only get to $175 million or $200 million. That’s still significantly over a three-year period, exceeding our 10% to 15% growth target.
And so as long as I can do that, I’m going to be very excited, very happy. And hopefully our shareholders will be. And I’ll say it again, I say it every call, I say it on Twitter all the time. We’re not for everyone. We’re not looking for momentum investors. We’re not looking for guys that care what we do, next quarter or the quarter after. We’re looking for long-term guys. They’re going to be with us for three years. Let us execute our plan. And let’s all get wealthy together.
