Podcast #21

“Company Aquisition”

Featuring Brandon Jacob

Intro: Welcome to Profiles In Prosperity with your host David Heimer.

David Heimer: Hi, this is David Heimer, welcome to Profiles In Prosperity. I am delighted to have Brandon Jacob join us today. Brandon is a CPA, but more importantly, Brandon is the owner-operator of Contractor’s Financial Opportunity, which is a financial consulting firm, which guides owners of contracting businesses with business valuations and exit strategies. Brandon has an amazing amount of experience, 20 years helping people sell and buy their heating and air conditioning and plumbing businesses. He’s done valuations, exit strategies, divestitures of branches, due diligence, acquisition, candidate prospecting, transaction negotiations. Brandon’s done it all. I know no one else in our industry with Brandon’s width and depth of experience in acquisitions and exit strategies. Brandon has written many articles for our industry and he is the author of two books. The first book is “For What it’s Worth”, which is a practical guide for understanding how to determine the value of your HVAC or plumbing business. His second book is “Operation Exit Strategy”, which explains how to develop and implement an exit strategy. These books are both great. I recommend them all the time. If you get a chance, you should read them. So Brandon, Jacob, welcome to Profiles In Prosperity.

Brandon Jacob: David, thank you for having me. It’s good to be here.

David Heimer: So I’d like to start off with a brief story that was told to me by one of our Service Roundtable members. This happened at a meeting we were having in Detroit. He’s an HVAC contractor there, and one day he got a call from another contractor in the same city. And the contractor that was calling said that he was shutting down his business. He’d been in business for 30 years and what he wanted was our member to come over and look at the equipment and see if he wanted to buy anything from the business. So the guy I know, went over to look over all the equipment stuff. The contractor had some tools. He wanted to keep this truck and he wanted to sell his customer lists. Our member bought it all for $1,200, not including the truck. And here’s what he said to me, “that guy had been in business for 30 years at the end of it all, all he had to show for all that work, all those years of hard work, where some tools, an old truck and a customer list. His business was only worth 1200 bucks, plus his truck. It terrified me because I was afraid I was on the same path and I didn’t want that to happen to me.” So tragically, Brandon, that’s not an uncommon story. I’m sure you have seen it a lot. And that’s why I think it’s so important that contractors read your books and plan an exit strategy before it’s too late.