Sammy

Lao Tzu... "A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves." This can only be achieved by empowering, respecting and supporting others.

@STLChrisH Columbus Ohio

@apexprossammy Oh man. What city?

Private equity in HVAC: Step 1: Fire the GM Step 2: Hire a 29-year-old MBA who’s never seen a condenser Step 3: Cut truck stock, tool, and training budget Step 4: Wonder why everyone quit and revenue collapsed Step 5: Buy add-ons and congratulate yourself on achieving a high growth rate

@Will_Schryver Probably 15% most can’t get anywhere near 20% so it would put the deal at 13x

My buddy owns an HVAC company here in FL and his competitor sold to private equity for $30 million. $15 million in revenue. Assuming ~20% EBITDA margin, that would put it at ~10x multiple.

@BSloan25 It’s called second shift once the house clams down and you have some quiet time 🤣

@STLChrisH Does combining sewer and hvac drastically skew these numbers? Are they actionable from this view as I’m assuming sewer close rates are much lower than hvac.

Here is our sales org performance in April across 4 businesses. The variation in performance across these businesses highlights opportunities to drive better sales performance. When you look at these KPIs at the individual rep level… the opportunity is even greater. Do you look at these same metrics within your sales org?

@STLChrisH You creating a tariff “surcharge” on invoices or just increasing the pricebook?

@AlliedSam We will pass thru direct cost increases 1:1. Margins on a percentage basis decline - but gross profit dollars remain constant. Make sense?

Tariffs = increased COGS Companies can either Raise prices. Or accept lower margins. Which one you choose is a function of how demand for your product / services varies with your price.

@STLChrisH @WilsonCompanies Chris now get busy with a new updated infographic for us 😂

@WilsonCompanies Good add. Aren’t they closer to $100m?

There aren’t many large independent hvac shops left. Most have sold to PE. Who is missing from this list? Lee Company Eco Plumbers, who else?

@WilsonCompanies @STLChrisH Let me get through the next couple months and we can figure out a time. Born and raised in Cleveland so a good excuse to come back and visit haha

@AlliedSam @STLChrisH I believe it, you should come on the podcast some time and share the story. You’d inspire a ton of folks

@STLChrisH @WilsonCompanies Started from zero March of 2021 website wasn’t up until June of 2021. Adding hvac in 2023 and electrical in 2024. Hopefully 2025 we get to settle in and flip the switch!

@AlliedSam @WilsonCompanies Year 4 and grew that large? Really impressive - good work!

@WilsonCompanies @STLChrisH Appreciate ya. Yes sir. Going into year 4 for us. We are still trying to figure it all out it’s been a whirlwind the last couple years.

@AlliedSam @STLChrisH Bro I added you to the list! I think you guys are independent yea?

@WilsonCompanies @STLChrisH John how big is HJacks in NE Ohio?

@STLChrisH Logan is independent, 65 or so in cinci. Atlas butler, apex both independent in Columbus. Roughly 30 each.

@STLChrisH Atlas Butler in Columbus 100 year old and close to 40m. Logan in central and southern Ohio 65m. My Buddy runs Harris in South NJ/PA and he’s budgeted for 50m next year Harris plumbing heating and air. I think Blantons is also in that 50m range in NC.

@AlliedSam arbitrary - but anything 30-40m + not many remaining

@WilsonCompanies Congrats! What percentage of YOY growth is that? Which depts you see the most growth in?

We're aiming for $34 million next year, and it doesn't feel out of reach. All we have to do is repeat this past October a bunch of times. No big.

It is a dark day in US history when an authoritarian with warrant requests from the International Criminal Court is allowed to address a joint session of Congress. 40k Palestinians are dead. Hostages aren’t home. Netanyahu is a war criminal. I will be boycotting his address.

@STLChrisH If your field team performance based or hourly?

We used to give raises on anniversary dates. This was complicated, difficult to administer, and gave us poor oversight. Now, all wage changes are aligned to our annual performance review schedule, and we make changes 1x per year for the entire organization. Simple. Scalable.

@STLChrisH Couldn’t have said it better. I start to cringe everytime I hear a SMB owner start talking about visionary and integrator! Everything has a time and place, but in order to build a real business you need to roll your sleeves up and be involved in everything.

The largest determinant of success for an SMB owner? An ability to work "up and down" the spectrum of business activities. From the strategic to the tactical. From the board meeting... to determining optimal truck stock on plumbing vehicles. If you want to buy an SMB and operate only at the board level... I would expect your success to pale in comparison to an operator who moves seamlessly between the strategic and the tactical.

@STLChrisH How many dig crews you have to produce that revenue?

What is 30% net margins (33% EBITDA)? Our St Louis underground department's October results. Exceptional people providing exceptional service. Take a look for yourself.

@STLChrisH I’m in!

Who would be interested in attending a 1-day event at my "Shared Services" office? Optional dinner hosted by my team the night before. Who? Residential service SMB owners and Hold Co owners. Some seats reserved for ETA / searchers and select SMB service providers. What? Deep dive into "shared service" ops supporting a >$100m OpCo, a real estate portfolio, and an active investment company (alts + public equities + direct investments). Will include call center ops, inside sales, IT / technology stack, finance & accounting structures & processes, purchasing & and supply chain structure, etc. Where? Saint Louis, MO When? Q1 2024 Why? Facilitate a great learning / sharing experience for attendees. Build new relationships. Let me know in comments below if you meet the "who" definition above and would be interested in a trip to STL. RTs would be helpful to extend reach.