First off, let me say that I find this board a great resource and appreciate all the help on my handful of posts. It's nice to have a knowledgeable community to tap into when you have a question. :thumbup:
Now, for the background. I have a subcontractor friend whom I use for my hvac work, whenever I can get him. He is amazing on a couple levels: He's great technically with all aspects of HVAC, generous with pricing, amiable with his customers, suppliers, other vendors, subs, and even competitors. What he has not had time to do for his business is the transitioning of himself from working in the business to working on and owning the business, while other people work in the business. I understand that position, as a previous sole-proprietor, who did everything for my own business while getting started. I was formerly a real estate broker with a team of 5, with two administrative assistants and three agents so I am relatively experienced in finding, managing and training people and systematizing duties/roles for constant improvement and consistent results. The only experience I have with the HVAC business is evaluating subs for my rehabbing business most recently, having lack-luster experiences with various local companies on my personal residence within 10 years, and then having family out of state in the HVAC business telling me stories of the people they work with/for that make me realize the value in the partnership that I'm considering.
Here's the current lay of the land. During the last job that my HVAC friend completed for me, I saw that he was still unloading the units and taking a physical beating. Understandable since in Austin it's regularly over 90, decently humid, and sunny during working hours. He's about 60 and in better shape than me in my 30s, so I'm not ragging on him, but rather realizing that a human body has a physical labor limit later in life. I asked him about what his plans were since you can't do the work yourself forever. He said he would love to figure out how to make it work, but his problem has been finding time to find the right people and keep his reputation intact.
Seeing such a talented and great guy with so much potential for his business, with no plan to keep it going or retire with some ongoing income; while also noting an opportunity for myself to work with a friend, in a company that has such a great reputation for service that wows clients, made me approach him on buying into his business, as a minority partner. (sorry for the long run-on sentence. I was never great at writing.)
So, here's my questions to the knowledgeable:
Thanks in advance for any input you can share with me.
Joe
Now, for the background. I have a subcontractor friend whom I use for my hvac work, whenever I can get him. He is amazing on a couple levels: He's great technically with all aspects of HVAC, generous with pricing, amiable with his customers, suppliers, other vendors, subs, and even competitors. What he has not had time to do for his business is the transitioning of himself from working in the business to working on and owning the business, while other people work in the business. I understand that position, as a previous sole-proprietor, who did everything for my own business while getting started. I was formerly a real estate broker with a team of 5, with two administrative assistants and three agents so I am relatively experienced in finding, managing and training people and systematizing duties/roles for constant improvement and consistent results. The only experience I have with the HVAC business is evaluating subs for my rehabbing business most recently, having lack-luster experiences with various local companies on my personal residence within 10 years, and then having family out of state in the HVAC business telling me stories of the people they work with/for that make me realize the value in the partnership that I'm considering.
Here's the current lay of the land. During the last job that my HVAC friend completed for me, I saw that he was still unloading the units and taking a physical beating. Understandable since in Austin it's regularly over 90, decently humid, and sunny during working hours. He's about 60 and in better shape than me in my 30s, so I'm not ragging on him, but rather realizing that a human body has a physical labor limit later in life. I asked him about what his plans were since you can't do the work yourself forever. He said he would love to figure out how to make it work, but his problem has been finding time to find the right people and keep his reputation intact.
Seeing such a talented and great guy with so much potential for his business, with no plan to keep it going or retire with some ongoing income; while also noting an opportunity for myself to work with a friend, in a company that has such a great reputation for service that wows clients, made me approach him on buying into his business, as a minority partner. (sorry for the long run-on sentence. I was never great at writing.)
So, here's my questions to the knowledgeable:
- Any good resources out there on HVAC business valuation?
- Anyone willing to share their experience on either side of a similar transaction?
- If you have considered and declined such an arrangement on either side, what made the arrangement undesirable?
- Any advice? or cautions?
Thanks in advance for any input you can share with me.
Joe