I just returned from Dallas, Texas where I attended to ACCA’s 2015 Convention. It’s always good to get caught up with the leaders of the air conditioning industry at this show. A highlight for me was the keynote speaker on Wednesday; Michael Gerber. Michael Gerber is the author of the E-Myth series of books and is definitely a motivating speaker for business owners.
As I listened to Gerber I took several notes on the points he made. As I reviewed my notes, two moments of his presentation stood out. First, he asked for a show of hands as to who wanted to one day sell their air conditioning business. An overwhelming majority of all attendees raised their hands. I was not surprised as I spend all of my professional time assisting contractors in valuing businesses and the overwhelming reason for business valuations is to prepare for the sale these businesses.
With a room full of hands in the air, Gerber than made the declaration that a majority of all small businesses do not sell, they go away with the business owner. He further went on to say that without a plan to sell a business there is never any end in site… its just work, work, work. All business owners should have an exit strategy. For over twenty years I have assisted contractors in buying and selling businesses. Those who are proactive enough to have a plan and to seek professional assistance in the execution always come out way ahead of those who do not.
The second point Gerber said was the as a business owner your job is to invent a business you can sell. Here is the good news, if you are an air conditioning, plumbing or electrical contractor you do not have to invent anything! All you have to do is implement the resources that are readily available within our industry. And it gets better, air conditioning, plumbing and electrical business do sell. Believe me as I have made a twenty year career out of assisting both buyers and sellers. There has never been a better time than there is today to either buy or sell a contracting business. And despite good times, only those contractors that dedicate resources to prepare will be successful.
Brandon Jacob’s career spans 23 years and includes extensive experience in business valuations, mergers and acquisitions, profit improvements, finance and accounting. Specific to the air conditioning and plumbing contracting trades, Brandon has 18 years of assisting in the sale and purchase of contracting businesses ranging from $100,000 to $50,000,000 in annual revenues.