Acquiring Minds Business Collapse After Going All-In
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Oct 14, 2024 Justin Willess, a former owner of a construction business in Northern Virginia, shares his harrowing journey after liquidating his 401k to buy an $8.5 million company. He reveals the frustration of discovering cooked books from the seller, leading to financial chaos and potential loss of his home. Justin reflects on the importance of due diligence and how emotional turmoil can impact leadership. He also expresses his desire to acquire again, bolstered by the resilience gained from his challenging experience.
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Career Plateau and Introduction to SBA
- Justin Willis, an engineer turned consultant, felt his career had plateaued.
- He was inspired to buy a business after learning about SBA loans from a private equity contact.
Search Focus and Rationale for Construction
- Justin Willis conducted a geographically focused search, prioritizing hands-on businesses.
- He chose construction due to perceived tailwinds in Northern Virginia's data center boom.
Lack of Awareness and Business Structure
- Justin was unaware of construction's cyclical risks when he began his search.
- The $8.5M construction business consisted of two entities: construction and janitorial, with overlapping contracts and customers.