The latest Acquiring Minds dropped today, an interview with Damon Chlarson of Pacific Insulation Supply. (links below)

Damon had 3 criteria for his search:

1) B2B

2) remote

3) scalable

(Love these criteria myself.)

He found all 3 in an insulation supplier.

3 fav takeaways from my convo with Damon

1/ Being the 3rd owner

Damon bought the business from a guy who'd himself bought the business from the founder.

So the business had proved itself sturdy enough to survive a transition.

We all know how delicate ownership transitions are, so this is a great signal.

2/ You gotta enjoy the business you buy

Before pursuing ETA, Damon spun up a garage flooring business.

He hated it - quickly shut it down.

But what a valuable lesson...

Damon then knew to REALLY envision the day-to-day of running the businesses he was considering acquiring.

They say the worst outcome of SMB acquisition is buying a bad business.

Sure. That, OR... buying a business you don't like.

3/ Buying small

Damon's original target for a business was $700k EV.

Pacific Insulation Supply was listed for $1.1m — way above Damon's number.

"At first, anything over a million just seemed outlandish to me." - Damon before

But he got comfortable & did the deal.

And now?

"$1 million is the smallest I'd probably ever go now." - Damon after

Links to the episode

Nailing the Trifecta: B2B + Remote + Scalable



Acquiring Minds website:

And lastly...

I'd love to learn about distribution businesses.

2 guests on Acquiring Minds bought distributors (Damon and Mark Litton), and another (Casey Clark) named medical distribution as among his favorite opportunities in SMB acquisition.

So if you've got pros/cons of distribution businesses, please drop them below!