Turning $25k into a $3.2m Exit in Under 4 Years
Acquiring Minds Podcast Recap
Published:
Guests: Corey Mullins, Patrick Lang
What Happened
Corey Mullins initially aimed to take over his family's HVAC business but pivoted to launch his own with a modest $10,000 and a single truck. He discovered a local HVAC company with less than $200,000 in revenue that was up for sale and decided to purchase it for $150,000. This deal was financed through a $15,000 SBA loan and his initial $10,000, totaling a $25,000 investment.
The acquired business, McConnell Air Conditioning, had inherent value due to its longstanding phone number, which was prominently displayed on numerous units throughout South Florida. Corey leveraged his nearly 20 years of HVAC experience, including a state license since 2011, to grow the business. He rebranded it under his new company, Cool by Design, and hired the former owner's son to ensure continuity with existing customers.
Throughout the COVID-19 pandemic, the HVAC industry experienced a surge, which Corey capitalized on, driving significant business growth. By 2024, Cool by Design achieved over $2 million in sales, prompting Corey to consider an earlier sale. In 2025, he decided to sell the business, listing it with broker Patrick Lang, and eventually sold it for $3.25 million to a private equity group.
Corey observed that private equity interest in the HVAC sector surged around 2020, with increasing multiples for business sales. He noted that private equity often installs industry-experienced operating partners in their acquisitions, differing from searchers who operate businesses themselves. His sale included 7% rolled equity, with the majority in cash.
Corey plans to start a new venture in the home services sector after his non-compete period ends, aiming for a larger acquisition than before. He advises others against overpaying for HVAC businesses, suggesting a target size of $3-5 million in sales with established middle management. He also sees value in partnering with someone with business acumen for future ventures.
Corey emphasizes the importance of keeping business and personal finances separate to ensure a business is sellable. He believes that having grit, determination, and sacrifice is crucial for building a successful business. Corey also notes the changing perception of trades, with increasing wages and opportunities, leading to tradespeople now being seen as successful and affluent.
Key Insights
- Corey Mullins transformed a $25,000 investment into a $3.25 million exit within four years, leveraging his extensive HVAC experience and strategic acquisition of a business with inherent value, such as a recognized phone number.
- The HVAC industry saw a boom during the COVID-19 pandemic, which Corey effectively capitalized on, growing his business to over $2 million in sales by 2024, after which he decided to sell.
- Private equity interest in the HVAC industry has increased significantly since 2020, with firms often installing experienced operating partners rather than having searchers run the businesses themselves.
- Corey plans to enter the home services sector again, aiming for a larger acquisition and recommending against overpaying for businesses, while also emphasizing the importance of having business acumen and proper financial management.