Answers
Straight answers on buying companies in the lower middle market. The consolidation math, the thesis that decides what to buy, and the diligence that decides whether a deal works. Written for owner-operators building through acquisition.
Not sure whether to sell or keep building? The calculator (in the top menu, or here) shows both paths side by side: what your business is worth if you sell today, and what it could be worth if you acquire first. Four inputs, about a minute.
The decision
Is it better to grow by acquisition or organically?
Organic growth is linear, and it is capped by the two things an owner has least of: time and technicians. Acquisition compounds three things at once, revenue, cost, and the multiple your business sells for, which is why buying can produce several times the value of building over the same five years. It works when your core business is stable enough to absorb the integration.
Full breakdown: Organic vs Acquisition Growth →
Should I sell my business or buy more and get bigger first?
If you can stomach another five years, buying first almost always produces the larger exit, because size raises the multiple on top of the added earnings. An owner who could net five million today can often reach something closer to fifty by acquiring one or two companies a year for five years. The calculator shows the gap on your own numbers.
By trade
How do owner-operators buy home services companies?
Private equity pays 17 to 20 times earnings for home services platforms and buys companies your size at 4 to 8 times, and that gap is why HVAC, plumbing, electrical, and landscaping are all consolidating. An owner-operator can run the same arbitrage with far less capital, and against those platforms you hold one advantage they cannot manufacture: you are the local operator the seller already trusts.
Full breakdown: Buying Home Services Companies →
Should I buy another HVAC company?
If you already run a profitable HVAC business with the systems and people to absorb more volume, buying is usually faster than adding customers one call at a time. The install base you acquire feeds service revenue for the next decade, and you are buying technicians you could not otherwise hire. The 2026 refrigerant transition is the diligence item most buyers are missing this year.
Full breakdown: Buying HVAC Companies →
Money and structure
Why do roll-ups stall?
Roll-ups almost never run out of companies to buy. They run out of capital, because every acquisition pulls working capital and management attention out of the core before it puts anything back. The fix is to design the funding for the moves you intend to make, ahead of the deals, so you buy from strength instead of scrambling from weakness.
Full breakdown: How to Fund a Roll-Up →
What is an acquisition capital stack?
An acquisition capital stack is the set of layers that fund a purchase: senior debt, SBA loans, private credit, seller notes, working capital, and equity. Each layer has a different cost and a different lead time, and the cheapest money is usually the slowest to arrange. Knowing what each does, and lining them up in the right order, is what lets a deal close on terms the buyer can live with.
Full breakdown: The Acquisition Capital Stack →
Still deciding whether acquisition is your path? The math is the fastest way to find out. The calculator is in the top menu, and a thirty-minute conversation is the next step when the numbers work.