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John Wilson Profile picture
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30 Mar, 5 tweets, 1 min read
Today we are meeting with one of our target companies, this is a $2.5MM HVAC business that is a great value add for us.

We're going over our 150 due diligence questions.

Here's a few of the big things we're looking for.

🧵
1. Skeletons in the closet:

Off-balance sheet loans

Potential staff red flags (ex cons, drug use, etc)

Quick glance at insurance risk profile, workers comp, driving.

Discussion of potential legal issues.
2. Potential Synergies:

Existing org chart - who stays who goes.

Geography overlap - service additions

Back office SOPs
3. Integration

Owners role post close

Management post close

Growth plan and feasibility
This is what we are going to be looking for.

If everything goes well this acquisition would increase my business size about 50%

Leave a comment if you have ant suggestions!

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More from @WilsonCompanies

John Wilson Profile picture
30 Mar
Just wrapped up a short due diligence seller meeting with a 2.5MM revenue company.

A lot of what I did today is soft skills, I asked about 80 questions, most are simple yes/no answers.
Most of the important words that were spoken today were me educating the seller about the next step in the process, which is...

Purchase Price Allocation
Purchase Price Allocation is basically when you get to split up the tax advantages that come with a business transaction.

This is also one large aspect of a transaction seller's know the least about.
Read 8 tweets
John Wilson Profile picture
13 Jan
Some discussion last week about promoting techs to managers and why I have never seen it work. A few folks asked for a more in depth look.

Here’s how I look at it:
When a SMB owner realizes they need an Ops/service manager it’s a big deal. They’re making a brave choice to step away from day to day. To trust someone with their business and staff. They're saying, “I take this business seriously and I’m ready to grow”. Time for next level.
If this is your first OPs/Service manager hire then it is one of the most important hires you make in your business. Why on earth would you promote someone who’s qualification is wrench turning and not leading teams?
Read 14 tweets
John Wilson Profile picture
5 Jan
This is a very long thread. @SamtLeslie asked to give the playbook for service companies so here it is. Follow it and you’ll get to 5M+ in a few years.

This is pure operations playbook.

No leadership, financial or HR discussion. Enjoy.
Industry:
Doesn’t matter much. @sweatystartup has an awesome list of service industries on his website that will get the job done.
Trades:
If you are under 3M and in multiple trades you’re doing it wrong. I was there and it was a mess.

Businesses under 3M don’t have good system, managers, effective onboarding, training, hiring practices, or pricing methods. If you did then you’d be bigger.
Read 25 tweets
John Wilson Profile picture
3 Jan
1. One of the least discussed factors of success is your choice of spouse.

I am reminded of this today because this is my 6th wedding anniversary. Here is a marriage thread.
2. A spouse is uniquely positioned to control your life. To lift you up or pull you down. To push you forward or hold you back. To trust and grow with you or settle. To spend all the money or build wealth. To ruin your life or make your life worth living.
3. I have been blessed with a spouse that always brought out the best in me and pushed me forward.

She trusted me to do things that I had no business doing, like acquiring a bunch of companies & real estate in my 20s with barely a clue.

(Like honestly what was she thinking)
Read 6 tweets

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