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Everyone& #39;s talking about buying small HVAC/plumbing businesses like it& #39;s just the newest greatest way to get rich.
1. No it& #39;s not
2. It& #39;s blood + sweat + tears hard
3. It can take 10+ years
I& #39;ve spoken with over 30 sellers in the last 2 months. Here& #39;s the *typical* story.
1. No it& #39;s not
2. It& #39;s blood + sweat + tears hard
3. It can take 10+ years
I& #39;ve spoken with over 30 sellers in the last 2 months. Here& #39;s the *typical* story.
Someone who has built a $2MM+ business is almost always someone who started from the ground, the dirt.
- One truck,
- No website,
- no employees,
- cheap equipment,
- Likely almost killed in 2008.
- One truck,
- No website,
- no employees,
- cheap equipment,
- Likely almost killed in 2008.
They& #39;ve clawed, scratched, and stressed 30+ years, 40+ hours a week to get that business where it is.
For some people that& #39;s more time than they get to spend with their children.
This business is literally their baby.
For some people that& #39;s more time than they get to spend with their children.
This business is literally their baby.
Sometimes they& #39;ve inherited this business from their parents, and they& #39;ve now raised their own baby, PLUS the generational family business.
And when it& #39;s finally time to sell their business, they& #39;re usually forced to via retirement or near bankruptcy.
And when it& #39;s finally time to sell their business, they& #39;re usually forced to via retirement or near bankruptcy.
In every single seller call I receive, there& #39;s some level of emotional dump.
1. They& #39;ve raised their children to help them on jobs.
Bonding themselves, their children, and the business.
1. They& #39;ve raised their children to help them on jobs.
Bonding themselves, their children, and the business.
2. Their children are the ones who don& #39;t want to buy the business. Forcing a sale.
When the business becomes a part of the family - this can be heartbreaking, and there& #39;s nothing that can be done about it.
When the business becomes a part of the family - this can be heartbreaking, and there& #39;s nothing that can be done about it.
3. They& #39;ve had aspirations of a 10MM business, and failed to get it there.
When they sell - they are admitting they couldn& #39;t do it.
I had a deal fall through because the seller would rather spend another 5+ years trying to turn it around.
When they sell - they are admitting they couldn& #39;t do it.
I had a deal fall through because the seller would rather spend another 5+ years trying to turn it around.
Everything about selling a business is heartbreaking.
And most of the buyers I& #39;m seeing lately aren& #39;t considering the other side of what they& #39;re buying.
Which is a family business that the founders bled for.
And most of the buyers I& #39;m seeing lately aren& #39;t considering the other side of what they& #39;re buying.
Which is a family business that the founders bled for.
And I get it, multiples and SBA debt is fun. I talk a lot about it here.
But the only thing separating searchers from big PE is our genuine care for a business& #39;s legacy.
More accurately - a family business& #39;s legacy.
But the only thing separating searchers from big PE is our genuine care for a business& #39;s legacy.
More accurately - a family business& #39;s legacy.
Be like @BrentBeshore - Do No Harm
Be like @xavierhelgesen - Hold Forever
Be like @sweatystartup - Embrace The Dirt
Be like @moseskagan - @girdley - @tsludwig
Care about the people who built what you buy
Be like @xavierhelgesen - Hold Forever
Be like @sweatystartup - Embrace The Dirt
Be like @moseskagan - @girdley - @tsludwig
Care about the people who built what you buy
