Excited to announce our 1st add on acquisition. This deal will significantly expand our footprint, strengthen our commercial customer base, and position us to capitalize on the rapid growth along the entire GA coast.

There’s a lot of noise about growing home services companies right now. Especially from people trying to sell you something. I just share our journey to add value. My focus is on winning on the fundamentals. Everyone talks about top-line revenue because it’s fun. I do too. But when I talk top-line, I back it up with a heavy bottom line. My recent post about our organic growth had some skeptics saying the math didn’t check out. 🤷‍♂️ So, here is some real math after 13 months of ownership: • 3.3x revenue growth ($1.9M to $6.3M run rate) • 7.3x EBITDA growth ($220k to $1.6M annualized) • 100% of investor capital paid back (including my own) • $1M in dry powder stacked along the way All organic. And now? M&A is officially underway. Buying a sub-scale business and pouring rocket fuel on it is absolutely possible. I’m proving it every day. I'm proving it to the doubters, but more importantly, I'm proving it to myself. I wasn't raised in a successful family. I’ve mainly taught myself everything I know. I always knew I was capable, but I spent years dealing with corporate C-level executives holding me back because of red tape, politics and their own personal fears protecting their career. Because I didn't come from the pedigree they expected, and because I'm a Marine Corps Infantry Combat Veteran, I can be a little rough around the edges. I have a chip on my shoulder. That’s why I left corporate. I didn't do this to sit back, coast, and build a little equity by slowly paying off an SBA loan. I don't know exactly what the future holds, but we are just getting started.

We you get in too deep on a pool that needs a massive renovation

The deal closed. The wire cleared. The buyer had the keys. And then the seller started trying to destroy the business. That sounds dramatic, but I’ve seen versions of this happen more than once. One client bought a business and, three months after closing, got a call from an angry customer. The customer said a job had been done poorly and wanted it fixed. The buyer searched the system. Nothing. No job file. No record. No invoice. So they asked the customer to send over the purchase order or invoice. The customer did. And that’s when the buyer realized the problem. This was not a job the buyer had done. It was a job the seller had done after closing. As it turned out, the seller had not been honoring the non-compete. He was still running around town doing jobs. Competing. Soliciting customers. Talking to employees. Actively undermining the buyer. The buyer called a litigator. The answer was painful but honest: Yes, you may have a claim. Yes, the seller may be violating the purchase agreement. But enforcing this is going to be expensive. Probably north of $100,000. It will require facts, evidence, time, and litigation. So you need to decide: Is this an existential threat to the business? Or is this something you handle by putting your head down, outworking the seller, and moving forward? That is a brutal decision for a buyer to make three months after closing. But it happens. Another buyer bought a business that relied heavily on an Amazon seller account. The account had 4,500 five-star reviews. According to Amazon consultants, that account represented millions of dollars of enterprise value. The problem? The account was still in the seller’s name. The seller claimed he tried to transfer it and Amazon said it was not possible. The buyer’s consultants were hearing something different. The seller was going to turn it off. So the buyer went to court and obtained an injunction requiring the seller to keep the account open and continue cooperating. The key provision? Further assurances. A boring-sounding covenant in the purchase agreement that suddenly became one of the most important provisions in the entire deal. Another buyer could not get the point-of-sale system transferred after closing. For the first six weeks, the buyer could not properly accept payments. Meanwhile, the seller was telling customers and employees that the buyer would be out of business in six months and that he would buy the company back out of bankruptcy. Again, the question became: What does the purchase agreement say the seller has to do? What does it prohibit the seller from doing? What cooperation is required after closing? What happens when the seller refuses? This is why covenants matter. Non-competes. Non-solicits. Non-disparagement. Confidentiality. Transition assistance. Further assurances. Post-closing cooperation. These are not just filler provisions that lawyers throw into the back half of a purchase agreement. They are the rules of the road after closing. And when something goes wrong, they may be the only source of leverage the buyer has. A lot of buyers think the deal is over when the documents are signed and the money moves. It is not. In many deals, closing is just the moment when the buyer finds out whether the seller is actually going to cooperate. Sometimes they do. Sometimes they don’t. And when they don’t, the covenant section of the purchase agreement can become very real, very fast. That’s what the latest episode of Main Street Deals covers. Because covenants are not boilerplate. They are the buyer’s post-closing protection plan. Enjoy!

When you buy a business, make sure you have the right seller. Some sellers sell their business and want you to succeed, and do everything-within reason- to help you. Some sellers sell their business and want you to fail, and do everything imaginable to stunt your attempt at success.

Who has the latest and greatest non public residential services industry overview deck? Last good one I saw was from TD a couple years ago. Think Harris Williams was a strong 2nd. Preferably with references to pools. Asking for a friend.

This Friday, the ETA Capital Forum brings together operators, investors, and advisors shaping the next wave of small-business acquisitions. I’ll be there with insights on deal structures and post-close growth. Will I see you in New York? Register here: luma.com/sfccf

Interesting read for anyone interested in search. Have been following and hearing about @blueprintsmb22 ‘s journey from the beginning. Smart guy with an interesting story and no BS perspective.

This of course assumes a 3.3x entry multiple, 30% margjn, excludes deal expenses, fees, asset transfer taxes, working capital. Ignores maintenance capex. Understates debt service. Fantasy deal. Under reasonable assumptions, you’d be running pretty lean with a lot of risk.

What it feels like managing for free cash flow

Baird Industrial analysts stoked they made the journal for 23 deals

Thanks for the feedback. Will definitely be making some changes…

This was us. Made the hire and hit the desk this week. Can’t recommend @pinpulleddrmf and @uncommon_elite enough. He worked with us through a number of candidates and found one we are really excited about. S/o to @SMB_Attorney for making the intro.

Over the last 3 years, I lost $2,860,000.00. We were the most expensive in our market—but barely. I feared raising prices, thinking customers wouldn’t pay. Then we got acquired and had to raise prices 20% overnight, making us 30% more than competitors. First day at new pricing? Our close rate increased by 10%. If I had priced correctly from the start, I would have had a chance to be the platform company, not the add-on. Lesson: If you offer a premium product & experience, charge for it otherwise you might be like me and leave 2.86m on the table.

MBA / IB searchers talking to boomer HVAC sellers…

Great points. My first deal closed right before peak season and was helpful. Wouldn’t bank on it, but very common for older sellers to have suboptimal CCC. Snail mail invoices, paying suppliers on receipt, carrying excess inventory, etc that can free up cash flow quick when fixed

Yes, Thanksgiving is a great holiday, actually my favorite. But it’s not a week off holiday and someone may be trying to realize the value their life’s work and the entire deal team has out of office replies. I’m all for work / life but come on… get it together.