Why We Pulled Out of Contract!
By Jason Paul Rogers
Since my last post here on Linkedin, we actually *pulled out* of contract on the plumbing company we had planned to buy. 😱
The reason why?
Principally, we found in due diligence the owner (seller) was such a crucial part of the company’s operations, that losing him would be potentially catastrophic to the bottom line if the perfect replacement (both regarding skillset and temperament) wasn’t found.
Indeed, the current owner is basically the person who shifts the company thru the gears!
As I shared with our internal Brighter Plumbing team, would you pay full price for a car that came without a transmission?
Our answer was: no, absolutely not!
Anyways, we have another Florida plumbing company we’re eyeing.
We’ve performed preliminary due diligence – and indeed this owner *has* trained up his staff to carry the operational burden without him being there at every moment!
I’ll share an update once it becomes available!
Ps- I’m thinking about making a video regarding what we look for when conducting due diligence – before buying either real estate or small cap companies. Indeed, this topic has been quite highly requested on my youtube channel. Let me know if you’d like me to post it on linkedin as well!