Molson Hart

Our plan is for dad to run the day to day after retiring from his day job. There will be other licensed plumbers on staff, but he’s looking forward to getting his license.

Our likes: - Seller has been lazy (his words) in his age and hasn’t spent time growing the biz, he’s in his late 70’s. There’s 5 trucks, but only 4 active crews, so we can go to work immediately. - Seller is very well known/ liked in the plumbing community and can help us find

Other purchase opportunities down the road - Seller is on month to month lease, so we will look to acquire some RE ASAP Negatives: - Expensive at 4x, and the seller wasn’t interested in as much of a seller note as we would have liked. - Dad won’t be able to retire by

Closing date, so we will have to find a work around with the existing seller.

After loan costs there’s only enough for dad to make a small salary and cash on the balance sheet. BUT, if we can find another with a similar size or situation, we are in a tremendous position to bolt on. Ideally we add horizontally (electric/hvac) or vertically (plumbing)

The SBA has a program currently that they waive/forgive the first 6 months of payment if you close before fiscal year end (sept 27th), so we are technically buying the biz for free in the long term. Money machine go infinity IRR

My unfiltered thoughts coming from my non-area of expertise (plumbing) 1. Congratulations. 2. Necessitas aprender espanol 3. Structure the deal to value the trucks & inv. highly. Depreciate them 100% for tax benefits. 4. 4x feels very high. His accounting is probably shit.

I'm assuming the 4x is including ex-owner's salary. That's probably an overpay.