30 Apr Acquiring Minds: Buying Then Losing a $2.1m HVAC Business
Dan Burnside thought he’d scored a bargain when he bought an HVAC business with $800k in SDE for $2.1M, a sub-3× multiple in a strong industry. But problems surfaced immediately. The day after closing, he discovered questionable practices that foreshadowed deeper issues. The company faced licensing violations, off-the-books bonuses, toxic employees he couldn’t easily replace, a historically slow summer, and staff departures to start competing businesses. At the same time, Dan struggled to gain trust as an outsider in a small, tight-knit rural community. His experience highlights that while very small markets may have less buyer competition, they come with unique risks that require careful diligence. Despite his efforts to turn things around, the combined challenges forced him to shut down the business and file for personal bankruptcy, a difficult experience he now shares openly.
