Looking to connect with Searchers in the Trades

searcher profile

January 05, 2024

by a searcher from Duke University in Boulder, CO, USA

I'm considering making an acquisition in the trades (plumbing, HVAC, etc.). I would appreciate the opportunity to connect with those who have acquired and/or run trades businesses to ask them questions about and learn from their experience.

I'm an experienced software entrepreneur who has sold multiple businesses (more on me & my partners here: https://sanitasindustries.com/) but the trades is brand new to me.

Thanks!

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commentor profile
Reply by a lender
from Montclair State University in Odenton, MD, USA
It depends, I am not an expert but from my experience, there are a certain number of hours that the contractor must study and practice for before they can sit for the test. Sometimes, it can be a year or two years. One of the issues that come up is the bank will most likely want the seller to personally guarantee the loan if he or she will be the license holder post-closing, regardless of their ownership.
commentor profile
Reply by a lender
from Montclair State University in Odenton, MD, USA
Hi Thomas, where are you located and what geographic location are you looking to acquire in? Is your plan to use bank debt such as SBA to acquire the business? The biggest hurdle in the trade sector is licensing. The seller in most cases will have to stay on until you or someone else can obtain licensing. I'd be happy to share what the bank would be looking for.
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