From SBA Loan to High 8-Figure Exit - Acquiring Minds Recap

Podcast: Acquiring Minds

Published: 2025-09-15

Duration: 2 hr 10 min

Summary

Jared Pierce shares his remarkable journey from purchasing an HVAC business using an SBA loan to achieving a high eight-figure exit. His story highlights the importance of timing, presence, and mastery of digital marketing and sales in building a successful business.

What Happened

In this episode, Jared Pierce recounts his incredible entrepreneurial journey, starting with the purchase of an HVAC business that was generating $3.5 million in revenue and half a million in seller's discretionary earnings (SDE). Using the equity from a house he had hacked with friends, Jared was able to buy the business outright without needing investors. Over the next five years, he significantly scaled the company, growing its revenue to $35 million and its EBITDA to over $6 million, ultimately leading to a staggering exit that he humbly notes was in the upper eight figures, having turned down an offer of $95 million.

Jared attributes much of his success to timing and his deep involvement in the business. As he entered the HVAC sector just as it caught the attention of private equity, he was able to command a higher multiple for his business. However, he emphasizes the hard work he put in, dedicating himself to mastering digital marketing and sales. His presence in the business was unwavering; he worked long hours, often going into the office on Saturdays to seek improvements. This commitment, he believes, was crucial in driving the business's growth. Following this success, Jared attempted to replicate his achievements by acquiring another home services business through his family office, but faced challenges due to his lack of presence in that venture, underscoring the lesson that active involvement is key to success.

Key Insights

• Presence and involvement are crucial for business success.
• Mastering digital marketing can significantly impact revenue growth.
• Timing in the market can affect business valuation and exit opportunities.
• The journey from a self-funded searcher to a larger acquisition can present new challenges.

Key Questions Answered

How did Jared Pierce finance his HVAC business acquisition?

Jared Pierce financed his acquisition of the HVAC business using the equity from a townhome that he had house-hacked with friends. This strategic financial move allowed him to buy the business outright without the need for investors, setting the stage for his entrepreneurial journey.

What were the key strategies Jared used to grow his HVAC business?

Jared focused on mastering digital marketing and learning sales techniques. He was actively involved in the business, dedicating his time to being present in the office daily and even on weekends. His commitment to continuous improvement and customer engagement contributed significantly to the business's growth.

What role did market timing play in Jared's exit strategy?

The timing of Jared's purchase was crucial, as he entered the HVAC sector just as it was becoming a hot target for private equity investment. This favorable market condition enabled him to command a higher multiple at the time of sale, significantly impacting the valuation of his business.

What lessons did Jared learn from his second business acquisition?

In his subsequent acquisition of another home services business, Jared realized that his lack of presence was a major factor in its poor performance. This experience reinforced his belief that being actively involved is essential for the success of a business, contrasting sharply with his previous success where he was fully engaged.

What advice does Jared have for aspiring entrepreneurs looking to buy a business?

Jared emphasizes the importance of being present and fully committed to the business you're acquiring. He suggests that mastering key areas such as digital marketing and sales can drive substantial growth, and that understanding market dynamics can greatly influence your exit strategy.