Acquiring Minds How (and Why) to Buy an Electrical Business
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Dec 12, 2024 Fred McGill, owner of Bray Electrical Services, shares his journey from real estate entrepreneur to acquiring a $3.2 million electrical business. He discusses the growth potential in the electrical sector, predicting a 25% revenue increase in the first year. Fred emphasizes the importance of digital marketing, effective hiring practices, and reassuring employees during ownership transitions. He contrasts the financial commitments of small businesses with real estate investments and offers insights into navigating SBA loans and licensing challenges in the trades.
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From Startups to Trades
- Fred McGill, a former real estate entrepreneur, transitioned into acquiring a business.
- His experience with tradespeople through his real estate ventures influenced his decision.
Startup vs. Acquisition
- Starting a business from scratch can be a challenging and arduous process.
- Acquiring an existing profitable business with an established brand and team is an attractive alternative.
Real Estate vs. Business Acquisition Financing
- Down payments for rental properties are typically higher (20-25%) than for business acquisitions (5-10%).
- Businesses offer potentially higher cash flow compared to a handful of rental properties.
