Business Acquisition Criteria

Industry Focus: Home Services

As of March 2021, we’re primarily interested in home services, especially plumbing and HVAC. We want to see home services businesses that derive almost all of their sales from services and replacements from residential customers (single family homes, condo owners, etc.).

However, we remain opportunistic. If there’s an intriguing business for sale, home services or not, we’ll explore it!

Geographic Focus: South Florida

For the first acquisition, we’re only looking in South Florida. Specifically, the counties of Miami-Dade, Broward, and Palm Beach. We like South Florida and being able to operate in-person. But most critically, without experience in plumbing or HVAC or any home service, it would be much harder to learn from afar than nearby.

General Business Characteristics

The business must have a moat – some reason why other businesses would struggle to compete. 

No matter how great your business is, if we can’t understand it, we can’t purchase it. Having a seller stay on for a period post-acquisition – whether as a regular employee or on a consulting business – can help the bridge the gap. 

We look for companies with a return on capital higher than the median for their industry. Steady higher-than-median  returns are good; higher-than-median and growing returns are better.

We’re primarily looking to buy great businesses at a fair price rather than OK businesses at a low price. This follows from our long-term holding strategy: since we’re not trying to sell an acquired business after a few years, we;d rather pay more for an excellent business.

 

Focus Areas