This Week’s Breakdown (in 10 Seconds):
Steven spent 7 years at Walmart growing one business unit from the mid-teens to over $250 million in revenue.
But in 2021, he left to do it for himself.
Within 5 years, he'd found a strategy that let him acquire 33 companies.
Today, his company has nearly 4,000 employees and over $1 billion in revenue.
He's now aiming to grow it to $10 billion per year.
And for our audio-only listeners, jump in and listen on Spotify or Apple Podcasts!
But if you want to learn a bit more, let's dive into the story...
Hello SMB Deal Hunters!
How many of you have heard the smart play is to buy a small business, hire a manager, and run it on the side?
It sounds reasonable. But most small businesses don't have the systems to run without you.
Steven tried exactly that for over a year.
He'd spent 7 years at Walmart growing one business unit from the mid-teens to over $250 million.
In 2019, he went after a $1 million HVAC business he could own passively, with a manager running the day-to-day.
He needed that manager in place before he could close.
But he tried and failed to get three different candidates.
With no one to run the business, Steven killed the deal in September 2020.
For a month, he thought maybe he wasn't cut out for this.
Then he called his now-business-partner, and realized: "Buying small isn't working. We need to buy something much bigger."
In May 2021, they closed on a $17 million construction HVAC business in Arizona.
Year one was the hardest of his entire life.
The previous owner left him a project that was $1.5M underwater. With his business only making $2 million in profit, he was in a tough spot.
On top of that, a consolidator ten times his size was poaching his employees.
He was working 100 hours / week.
Steven couldn't even process the concept of buying another business.
Then, he landed on the model that would let him do it 32 more times.
After a year of pitching, only one seller took him up on his offer.
That single yes broke everything open.
Five years later: 33 companies, nearly 4,000 employees, and over $1 billion in revenue.
He's now aiming to grow it to $10 billion.
👉 He explains the entire model right here
Member Spotlight
For those who missed it, we also did an SMB Deal Hunter Pro alumni interview breaking down John's acquisition of two yoga studios in Northern Virginia WITHOUT quitting his 9-to-5.
John spent 6 years as a Navy submarine officer before earning his MBA and going into Big Four consulting. He decided he wanted to build something for himself.
So he joined the Pro program. Two months in, he had an offer signed.
John leaned on our deal team to help him:
🔥 Negotiate the seller down from $2.5M to $1.38M on a business that had been sitting on the market for over a year
🔥 Keep the deal alive when the franchise dropped a bombshell three days before close
🔥 Skip months of trial-and-error with Bill, an M&A advisor on our team who already owns fitness studios in Northern Virginia.
He spent his career advising other people's companies.
Now, he owns two yoga studios cash flowing $299K a year.
"We're in a new era with Claude and ChatGPT. I've used that quite a bit. But I've definitely caught it hallucinating more than once. It's really good to have someone on the other line that not only is a human, but someone who has experience."
So, if you want me and my team to work with you to find, finance, and acquire a million-dollar cash-flowing business in the next 6-12 months, you might be interested in the Pro program.
P.S. When we asked John what he'd tell someone watching this who's unsure about taking the leap, here's what he said: "It can't be that easy, but it is." That's what the right team does. 👉 Book a call here
COMMUNITY PERKS
• Ready to buy and operate a $1M+ business? Get expert help at every step.
• Want to invest passively in SMB acquisitions? Get access to investment opportunities.
• Get a personal introduction to my preferred SBA 7(a) lender, non-SBA lenders, Quality of Earnings providers, or legal counsel
• Raising capital for your deal? I’ll connect you with investors from the SMB Deal Hunter Community.
• Interested in selling your business? I’ll help you connect with buyers from the SMB Deal Hunter Community.
THAT’S A WRAP
Want me to interview you for my podcast? Hit reply.
See you next week with some new deals!
-Helen Guo
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Disclaimer
This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only; SMB Deal Hunter does not verify nor confirm information. SMB Deal Hunter is not making any offer to readers to participate in any transaction or opportunity described herein.