The hardest part of buying a business isn’t buying it.
It’s running the business after the deal closes.
Over the past 10 years, we’ve bought around 15 plumbing, HVAC, and electrical companies across multiple states. I’ve learned that acquisitions are a lot messier and a lot more human than most people expect.
A lot of people spend years searching for the “perfect” business.
I think that’s a mistake.
The operators who actually build something meaningful are usually the ones willing to get into the game early, learn fast, and improve with every acquisition.
Here’s how I think about buying small businesses today.
Buying a Business Is Not Like Buying Real Estate
A business is not a rental property.
Employees can quit. Customers can leave. Systems can break. Culture matters. Leadership matters. Execution matters.
That’s why I always tell people the acquisition itself is just the beginning.
“The hardest part of buying a business isn't buying it, it's the fact that you have to run it after you buy it.”
If you are serious about acquisitions, you need to think more about post-close operations than the transaction itself.
How I Source Acquisition Deals
One of the biggest mistakes I see is buyers sitting around waiting for the perfect deal to show up.
This is sales.
You have to hunt.
1. I Go Directly to Owners
Some of the best deals never hit the market.
That means you need to do things other people won’t do:
- Cold call
- Knock on doors
- Join industry groups
- Send letters
- Build relationships
I have a friend who literally knocked on the doors of plumbing and HVAC companies looking for acquisition opportunities.
That sounds aggressive to some people.
To me, that’s just sourcing.
2. Getting in the Game Creates More Deal Flow
One thing people don’t talk about enough is how much easier sourcing becomes after your first acquisition.
When we bought our first small plumbing company years ago, that changed everything.
Owners started reaching out to us because they knew we were active buyers.
Another contractor approaching another contractor gets a much different response than a private equity group or random investment firm.
That credibility matters.
3. Brokers Are Helpful, But They’re Not the Strategy
Yes, brokers can help.
Yes, BizBuySell can help.
But I don’t think you can build an acquisition strategy around waiting for the right listing to magically appear online.
If I know where I want to grow, I’m going to go after it intentionally.
How I Value Small Businesses
One of the most common questions I get is:
“How do you value a business?”
For most small businesses, especially in plumbing, HVAC, and electrical, acquisitions are usually based on a multiple of profit, not revenue.
That distinction matters a lot.
A lot of first-time sellers think:
“My company does $2 million in revenue, so it should be worth $2 million.”
That’s usually not how the market works.
Most deals in our space are based on trailing twelve-month profit.
The multiple changes depending on:
- Growth potential
- Operational systems
- Market conditions
- Strategic value
- Service mix
- Leadership structure
Value is always contextual.
Business Valuation Is Emotional
This is something buyers underestimate constantly.
For a lot of sellers, the number they give you has very little to do with actual valuation models.
Sometimes it’s the retirement number they need in order to feel comfortable selling.
That means these conversations are emotional before they are mathematical.
You need to understand that going in.
How We Approach Due Diligence
Once we agree on a general valuation, we move into due diligence.
That’s where we review:
- Financials
- Bank statements
- Customer records
- Vendor agreements
- Software contracts
- Leases
- Payroll
- Operational systems
The goal during diligence is not finding perfection.
Honestly, we’re usually looking for problems we know how to fix.
A lot of great acquisitions are unoptimized businesses with operational upside.
The real question is:
Can we improve this business after we buy it?
What Actually Matters After Closing
The acquisition process gets all the attention.
The real work starts after the deal closes.
Now you have employees adjusting to new leadership. You have systems to integrate. You have pricing, dispatch, operations, marketing, and culture to evaluate.
That’s why we spend a lot of time building:
- Integration checklists
- 100-day plans
- Communication strategies
- Operational roadmaps
before the deal even closes.
Because if you don’t have a plan post-close, the acquisition can unravel fast.
Final Thoughts on Buying a Small Business
If you want to buy a business, stop waiting for the perfect opportunity.
Start building relationships. Start sourcing aggressively. Learn how to negotiate. Learn operations. Learn leadership.
Most importantly, understand this:
The real value in acquisitions usually gets created after the deal closes, not during the purchase itself.
