Acquiring Minds

How To Buy And 2x A Subcontractor Business

with Brendan Van Buren · ProMax Fencing Systems

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

The Deal

Business

ProMax Fencing Systems

Industry

Commercial fencing and specialty construction subcontracting

Year

2018

Revenue at Purchase

$12.5M

Deal Source

proprietary

Strategic Rationale

Attracted to niche commercial fencing subcontracting due to superior margins versus general contractors, industry familiarity from family business experience, and the ability to build something tangible with a capable, trustworthy seller.

Post-Acquisition Performance

Doubled revenue within approximately four and a half years through a combination of organic growth via expanded estimating and project management capacity, geographic expansion with new office in State College, Pennsylvania, and tuck-in acquisitions of crews and equipment, while nearly doubling EBITDA despite material cost inflation headwinds in 2021-2022.

Key Takeaways

1Build a genuine father-son relationship with the seller rather than viewing the acquisition as purely transactional, which deepens post-acquisition collaboration and advice.
2Conduct a structured 180-day transition where you shadow the seller for 90 days to learn operations, then reverse roles so they advise while you lead, allowing smooth knowledge transfer without disrupting the workforce.
3Model downside scenarios for cyclical industries like construction by stress-testing with bad years rather than avoiding the sector entirely, and negotiate multiples accordingly to account for risk.
4Focus initial post-acquisition efforts on learning and relationship-building with employees rather than executing growth strategies immediately, as stable transitions preserve workforce morale and retention.
5Successful searchers maintain consistent outreach discipline by sending daily letters and emails rather than becoming hyperfocused on single opportunities, which kills pipeline momentum.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Zions Bank, A Division of85%

$500KP + 2.75%FY2011

PCB Bank85%

$380KP + 2.75%FY2010

Santander Bank, National Association85%

$100KP + 4.00%FY2014

The Deal

Business

ProMax Fencing Systems

Industry

Commercial fencing and specialty construction subcontracting

Year

2018

Revenue at Purchase

$12.5M

Deal Source

proprietary

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1Build a genuine father-son relationship with the seller rather than viewing the acquisition as purely transactional, which deepens post-acquisition collaboration and advice.

2Conduct a structured 180-day transition where you shadow the seller for 90 days to learn operations, then reverse roles so they advise while you lead, allowing smooth knowledge transfer without disrupting the workforce.

3Model downside scenarios for cyclical industries like construction by stress-testing with bad years rather than avoiding the sector entirely, and negotiate multiples accordingly to account for risk.

4Focus initial post-acquisition efforts on learning and relationship-building with employees rather than executing growth strategies immediately, as stable transitions preserve workforce morale and retention.

5Successful searchers maintain consistent outreach discipline by sending daily letters and emails rather than becoming hyperfocused on single opportunities, which kills pipeline momentum.