- The importance of a strategic approach in selecting a business for acquisition, focusing on market conditions and location.
- Techniques for identifying and evaluating the growth potential of a target business, beyond its current valuation.
- The critical role of digital transformation in enhancing a newly acquired business, with a focus on operational digitization and marketing.
- The value of specialized acquisition training in preparing entrepreneurs for successful business purchases and decision-making.
In the dynamic world of business acquisitions, it takes a keen eye and a steadfast spirit to identify and seize the right opportunity.
This is the story of Doc Barseghian, an acquisition entrepreneur who navigated the complex terrain of business deals to successfully purchase a $799k electrical contracting business.
With a blend of strategic foresight and practical wisdom, Doc’s journey sheds light on the intricacies of acquiring a small business and transforming it into a thriving venture.
Let’s dive into how he closed this deal and the insights he gleaned along the way.
The Beginning of a New Venture
Doc’s journey began with an 18-month exploration of various businesses, following training from an acquisitions program.
“We looked at a number of businesses…from the time that we went through acquirers’ training to the point of pulling the trigger,”Doc explained.
Various factors, including market conditions and a strategic geographical choice drove the decision to purchase a small electrical contracting business in Southern Florida.
A Strategic Acquisition
The business, valued at around a million dollars, was smaller than initially targeted but presented a unique opportunity.
“We bought a fixer-upper,” Doc joked, emphasizing the potential he saw in the business.
The acquisition’s appeal lay in its established history of over 20 years and its focus on high-end residential construction and remodels.
Leveraging Strengths for Growth
Doc and his wife digitized operations and enhanced services by leveraging their background in digital marketing.
This strategic move has already started yielding results.
“The service business…has now outpaced our construction business for the first time,” Doc shared enthusiastically.
The Role of Acquirer’s Training
Reflecting on the acquisition process, Doc credited his success to the rigorous training and practice he received.
“Going through the training together…really helped give us the competence,” he noted.
He emphasized the importance of diversity of thought, especially in decision-making with his wife, with whom he shares a strong partnership.
Future Prospects and Advice
Looking ahead, Doc plans to pivot the business towards service-based models, including adding generators to their offerings. His advice to aspiring acquirers is to evaluate multiple companies, heed feedback, and be prepared for a rigorous journey.
Doc’s story is a testament to the potential of small business acquisitions and the power of strategic thinking and partnership in entrepreneurial success.
If you’re interested in buying your own business, the journey begins with our Accelerator+ program. We will do all the heavy lifting for you, including sourcing and vetting a business, conducting thorough due diligence and negotiating an LOI, and helping with final negotiations and closing on the deal. Space is extremely limited in the program. Sign up below to see if you’re eligible.
- Small electrical contracting businesses, especially those with an established history, can be lucrative acquisition targets.
- Recognizing and realizing the hidden potential in ’fixer-upper’ businesses can lead to significant growth post-acquisition.
- Implementing digital marketing and operational efficiencies is key to transforming and scaling an acquired business.
- Diverse perspectives and thorough training are essential in making informed acquisition decisions and navigating the complexities of business purchases.
Acquira specializes in seamless business succession and acquisition. We guide entrepreneurs in acquiring businesses and investing in their growth and success. Our focus is on creating a lasting, positive impact for owners, employees, and the community through each transition.