Acquiring a business is a challenging feat. It takes hard work, perseverance, and dedication to get to the finish line. That’s why we like to celebrate our wins.
Recently, Acquira’s Daniel Elizondo signed the asset purchase agreements for a plumbing business in Texas.
Daniel joined Acquira’s program in January 2021 and quickly distinguished himself as a top performer. His dedication and enthusiasm led him to join Acquira's team, where he became a familiar face on our weekly Accelerator Program calls and Investment Committee presentations, he became a Success Coach for many Acquisition Entrepreneurs (AEs), and he served as a member of Acquira’s leadership team as a Managing Partner. Despite these additional responsibilities, Daniel never lost sight of his goal to acquire a business.
After months of searching, Daniel found the perfect opportunity in a plumbing business located in his home state of Texas. The acquisition process was not without its challenges, but Daniel persevered with the support of Acquira's team.
In an interview with Acquira’s Ty Trumbull, Daniel shared his thoughts on the signing process and the journey that led him to this point.
Third-Party Legal Counsel
For his part, Daniel says he is glad that he engaged a neutral third-party legal counsel to draft the documents. In total, between 10 and 12 documents were ancillary to the purchase agreement.
“I thought of the neutral legal adviser as a way to make the process more efficient while still keeping me protected,” Daniel explains. “A neutral legal counsel, which involves drafting the services or drafting the agreement, does not mean that it is to my disadvantage because I still have the opportunity to review everything.”
The purchase agreement was prepared after a few revisions involving the three legal counsels. Everyone agreed to sign the document once enough progress had been made on the ancillary documents.
Those documents included the seller's note, the bill of sale, the assignment agreement, the transition services agreement, the employment agreement, and the leasing agreement, among others. Despite the number of people working on the project and the amount of paperwork, Daniel was impressed with how smoothly it went.
“What else can I tell you about the purchase agreement? It was not that complicated,” Daniel says.
Daniel’s Timeline
Daniel says the process from his Final Investment Decision (FID) – when he decided to pursue the deal fully – and signing the asset purchase agreement was about five months. He expects the deal to fully close within a few weeks of signing the document.
The one thing that Daniel recommends to any Acquisition Entrepreneur pursuing a deal is not to go it alone.
“They should not try to do this by themselves unless they're qualified,” he says. “I have a lot of experience working with agreements, and I had to research a few things to ensure I was not ignoring things I should know.”
Looking ahead, Daniel is intent on becoming the owner of a portfolio of small businesses within the home services sector. He says he plans to use the ACE Framework and build a roll-up of companies with 2-3 more acquisitions in the next two to three years.
Conclusion
Of course, signing the Asset Purchase Agreements is just one of many, many steps in the acquisition journey. Even for someone as experienced as Daniel, he had to go through Acquira’s training to learn the intricacies of the process.
That started with Acquira’s Accelerator Program. The Accelerator will teach you how to source, assess, and ultimately acquire a business within seven months. That’s half the time and half the cost it would take to do it on your own.
Space is limited in the program. If you’re interested in participating, fill out the form below to speak with an Acquira representative and see if you’re eligible.
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.
