Acquiring Minds

Rather Than Retire Buy A Business

with Maurice Thomas · Mainline Electrical

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

The Deal

Business

Mainline Electrical

Industry

Electrical contracting

State

Multiple (SDE)

3.9x

Year

2022

Financing

SBA 7a

Revenue at Purchase

$4.8M

SDE at Purchase

$1.0M

Deal Source

broker

Financing Structure

SBA 7(a)

Buyer Equity

Seller Note

Strategic Rationale

Acquire an established, profitable service business with strong market reputation and quality customer relationships to leverage operational expertise and build out recurring revenue through service diversification.

Post-Acquisition Performance

Business has grown from 30 employees to 50 (primarily helpers rather than lead electricians), implemented improved communications via Slack, developed strong coaching and leadership culture, and is actively building service revenue model with external consulting support; primary challenge remains recruiting experienced lead electricians.

Key Takeaways

1Distinguish between critical information needed before submitting an LOI versus information that can be gathered during due diligence to avoid analysis paralysis and losing deals to competitors.
2Core values alignment with the seller and their philosophy toward employees and customers is crucial and reduces post-acquisition friction and transition challenges.
3Know thyself through rigorous self-examination of goals, competencies, and core values; the clarity from this exercise is more valuable than any other part of the acquisition process.

Matched SBA Loan Records

SBA loan filings we matched to this deal

PyraMax Bank FSB85%

$100KP + 2.00%FY2011

JPMorgan Chase Bank, National Association85%

$150KP + 2.05%FY2016

First Bank85%

$3.3MP + 2.00%FY2017

The Deal

Business

Mainline Electrical

Industry

Electrical contracting

State

Multiple (SDE)

3.9x

Year

2022

Financing

SBA 7a

Revenue at Purchase

$4.8M

SDE at Purchase

$1.0M

Deal Source

broker

Financing Structure

SBA 7(a)

Buyer Equity

Seller Note

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1Distinguish between critical information needed before submitting an LOI versus information that can be gathered during due diligence to avoid analysis paralysis and losing deals to competitors.

2Core values alignment with the seller and their philosophy toward employees and customers is crucial and reduces post-acquisition friction and transition challenges.

3Know thyself through rigorous self-examination of goals, competencies, and core values; the clarity from this exercise is more valuable than any other part of the acquisition process.