Acquiring Minds✓ Verified in SBA records

Buying A Business Having A Blast

with John · Residential appliance repair business

LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Residential appliance repair business

Industry

Appliance repair services

State

Purchase Price

$775K

Multiple (SDE)

3.2x

Year

2022

Financing

SBA 7a

SDE at Purchase

$240K

LTV at Close

90%

Deal Source

broker

Financing Structure

$659K

$116K

SBA 7(a)

$659K (81%)

Buyer Equity

$116K (14%)

Seller Note

$39K (5%)

Strategic Rationale

Attracted to the business for its 75-80% revenue derived from manufacturer and warranty company contracts providing predictable steady income, combined with a strong existing company culture and growth potential in the cash customer market.

Post-Acquisition Performance

After one month of ownership, the business is operating smoothly with strong employee retention and engagement; primary challenges are managing account transitions and vendor responsiveness during the changeover, while planning mission and vision rollout for January to drive growth in non-warranty customer acquisition.

Key Takeaways

1In constrained geographic markets with limited deal flow, price expectations are higher due to supply-demand dynamics, and small premiums over typical multiples have minimal long-term impact on returns.
2Buying from sellers who do not need to sell provides negotiating leverage for the buyer, as they are willing to wait for better terms rather than accept suboptimal offers.
3The best time to purchase a business is when the seller has built it to operate without heavy dependence on their personal involvement, creating both stability and growth runway for the new owner.
4Post-acquisition account transitions and administrative tasks are significantly more difficult than expected due to flawed systems and understaff response times, requiring patience and persistence.
5Spending time building genuine relationships with existing staff through ride-alongs and regular communication is critical for maintaining the strong company culture inherited from the previous owner.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Cadence Bank95%

$544KP + 2.50%FY2019

Cadence Bank95%

$100KP + 2.50%FY2018

Wells Fargo Bank National Association95%

$10KP + 6.50%FY2017

The Deal

Business

Residential appliance repair business

Industry

Appliance repair services

State

Purchase Price

$775K

Multiple (SDE)

3.2x

Year

2022

Financing

SBA 7a

SDE at Purchase

$240K

LTV at Close

90%

Deal Source

broker

Financing Structure

$659K

$116K

SBA 7(a)

$659K (81%)

Buyer Equity

$116K (14%)

Seller Note

$39K (5%)

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1In constrained geographic markets with limited deal flow, price expectations are higher due to supply-demand dynamics, and small premiums over typical multiples have minimal long-term impact on returns.

2Buying from sellers who do not need to sell provides negotiating leverage for the buyer, as they are willing to wait for better terms rather than accept suboptimal offers.

3The best time to purchase a business is when the seller has built it to operate without heavy dependence on their personal involvement, creating both stability and growth runway for the new owner.

4Post-acquisition account transitions and administrative tasks are significantly more difficult than expected due to flawed systems and understaff response times, requiring patience and persistence.

5Spending time building genuine relationships with existing staff through ride-alongs and regular communication is critical for maintaining the strong company culture inherited from the previous owner.