Shaugn Lindley, a former tech sales professional turned entrepreneur, shares his inspiring journey of transitioning to forklift repair ownership after a layoff. He discusses the importance of mentorship and networking, revealing his unconventional decision to bypass landscaping ventures. Shaugn emphasizes the significance of following up with potential clients, overcoming hiring challenges, and standing out in a competitive market. His insights into acquiring a niche business shed light on the resilience required in entrepreneurship, especially while preparing for a new family.
Shaugn Lindley transitioned from tech to entrepreneurship after being laid off, driven by his desire for work-life balance and family goals.
His acquisition of a forklift repair business was influenced by a strong financial model, low overhead, and growth potential in the market.
The significance of mentorship emerged as Shaugn navigated the complexities of business acquisition, emphasizing the importance of networking and guidance.
Deep dives
Sean's Career Shift
Sean Lindley experienced an unexpected career transition when he was laid off from his role at SAP due to tech industry layoffs. This shocking moment prompted him to reassess his life and career ambitions, particularly with a new baby on the way. After taking time to reflect, he decided to pivot away from corporate life and explore entrepreneurship through acquiring a business. His previous experience in small business ownership motivated him to return to this path, leading him to ultimately purchase a forklift repair business.
The Business Acquisition Journey
Sean's search for the right business began with an exploration of various industries, which included a failed attempt to buy a landscaping company that had a competitive offer. His strategy involved creating a defined set of criteria for businesses he would consider while also tapping into his network to seek mentorship. He formalized his coaching relationship with an experienced business buyer, which proved crucial in navigating the complexities of the acquisition process and provided accountability during his search. This mentoring relationship ultimately led him back to the forklift repair sector, where he found a business that aligned with his goals.
Choosing R&R Lift
R&R Lift, a 31-year-old forklift repair and maintenance business, caught Sean’s attention due to its strong financial performance and attractive revenue model, which includes a blend of recurring and repair work. The company's low overhead and lack of customer concentration further enhanced its appeal, making it an attractive investment opportunity. Sean recognized the potential for growth, particularly in modernizing the business's marketing efforts, as the previous owners had not utilized many marketing strategies. This opportunity to build upon a solid foundation excited him and matched his skills in business growth.
Financing and Deal Structure
Sean structured the acquisition deal for R&R Lift to include 80% financing through the SBA and 10% from the seller, which ensured that the previous owners retained some stake in the business and facilitated ongoing support during the transition. He emphasized securing a line of credit for working capital to support the growth of the business after closing. By negotiating favorable terms and leveraging relationships with multiple lenders, he was able to obtain competitive financing rates, which positioned him well for future operational needs. This strategic financial planning was informed by lessons learned during his search and discussions with his mentor.
Future Vision and Growth Potential
Looking ahead, Sean is committed to building R&R Lift as a lasting family business with the possibility of expansion through additional acquisitions in the future. He has identified a strong demand for forklift repair services within the thriving Austin market, creating ample opportunities for sustained growth. Sean plans to modernize operations and marketing to increase service visibility, leveraging technology to optimize workflows and increase efficiency. His focus on creating a work-life balance is also pivotal, as he aims to enjoy family time while growing the business sustainably.