Acquiring Minds Buy and 3x a Project-Based Business in Just 2 Years
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Oct 2, 2023 Johannes Hock, a private equity professional, shares his journey of acquiring an artificial turf installer business and growing it from $5m to on track to exceed $15m in 2023. He discusses the differences between private equity and search, sources of deal flow, valuing and financing a fast-growing business, tracking data, and unexpected costs of sales commissions. He also emphasizes the benefits of having a partner in search and the challenges of financing a rapidly growing business.
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Use Quick IOIs to Signal Interest
- Submit IOIs quickly after receiving deal materials to signal seriousness and save time.
- Provide clear, professional offers with pricing ranges to encourage seller engagement.
Buy Businesses With GMs
- Aim for businesses with $750K+ EBITDA and a general manager in place.
- Having a GM lets you focus more on growth than daily operations, enabling faster scaling.
Prioritize Businesses With GMs
- If possible, buy a business with a GM to avoid daily operational duties.
- This lets you spend more time improving and growing the business rather than firefighting.