I’m not a licensed tech or contractor but searching for home service Cos.

by a searcher from University of Connecticut

2 years ago

Hi All,

I have been going through my deal flow. Not limiting myself too much geographically but I like the contractor businesses such as HVAC, Landscapers, etc
(recession resistant!)

I have no technical skills in this space but looking at businesses which range from###-###-#### employees and SDE of $250k - $600k. Am I going to face obstacles from a financing standpoint as I’m not licensed in the space? Any other unseen hurdles I should be aware of?

Helpful tips for others as I’d like to give back with all the great advice here:

-hubspot crm for dealflow is great and free 
-sba website has a list of the top lenders closing loans every quarter on their website-our searhfunder go to’s are There as well!
-set up alerts on bizbuysell to recover new listings with your search criteria
- contractors can get a leg up on government contracts through minority certifications(sba can point you to these as well)

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3 comments

intermediary from ESADE - ESADE Business School

Vinni - Tupelosmb.com is a marketplace full of HVAC and plumbing companies. Feel free to DM or email me --@----.com and we can chat.

2 years ago | like reply | 0 likes

lender from California State University, Sacramento - College of Business Administration

+1 to Saad's comments above. adding: Each state is going to have specific requirements. We need to know how long it will take for you to obtain said license and that will guide what you and your lender are trying to mitigate. Tying seller note to buyer getting the license AND having an employment contract with an employee that has the license can be short-term strategies while you study for and obtain licenses. The risk that the bank (and the buyer) is trying to mitigate is that the owner/guarantor is having to rely on third-parties to legally operate the company. DM for more details. --@----.com We have a service contractor vertical so have lots of experience is trying to navigate this particular key risk.

2 years ago | like reply | 1 like

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