07 Sep Acquisitions Anonymous: The $20 Million Coral Company That Nobody Knows About
Most people strive to buy a business that works. Today’s guest bought one that was not working, on purpose. Mike Bourgeois and his search partner acquired Cardinal Heating & Air in Kirkland, Washington, in December. The $12 to $15 million-revenue business was losing about $3 million a year. But demand was fine. The problem was cost structure. That let Mike underwrite the deal like a deep value investor. If it worked, they could reach $1 million-plus in EBITDA within a couple of years. If it didn’t, they could potentially liquidate the assets and roughly break even. Heads I win, tails I don’t lose much. We rarely hear this story on Acquiring Minds. First-time searchers typically seek healthy, profitable businesses. That’s the playbook, and it’s what SBA lenders underwrite. Mike’s deal inverts the usual risk. He paid cash, with no bank debt or personal guarantee. Instead, he took on operational chaos and the possibility of losing it all. It’s a different shape of risk, not less of it. Here he is, Mike Bourgeois, CEO and co-owner of Cardinal Heating & Air.
