Acquiring Minds Why Plumbing Companies Make Awesome Acquisitions
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Aug 26, 2021 Charles Barr, an entrepreneur who recently acquired DiMartino Plumbing, discusses buying a small business as a path to wealth. He shares why he chose plumbing, the numbers on the business deal, and why he's getting his plumbing license. He also highlights the advantages of buying a plumbing business, including financial benefits and the potential for growth.
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Choosing Search Fund Strategy
- Traditional search funds may press buyers into higher-priced businesses and wider geographies.
- Self-funded paths suit geographic restriction and buying smaller, fairly priced businesses.
Cash Purchase Experience
- Charles paid cash mostly from savings to acquire Demartino Plumbing.
- SBA loans do not support small purchases when personal liquidity is high.
Due Diligence Priorities
- Confirm PPP loan funds are excluded from revenue during due diligence.
- Prioritize businesses with strong service components and good reputations.