Ep.#7 [THEME FIVE]

 

If someone were to ask you to create a short list of companies who should buy your company, it probably wouldn’t take you long. The list is most likely based on logical reasons these buyers would want to acquire your company, because by owning your company, it would help the buyer grow their business and take more market share.

 

The goal of today’s episode is to better understand the mindset of strategic buyers, why they are buying companies, and what they plan on doing with the company after the purchase. Instead of just assuming why buyers would want to purchase a company, in this episode we get to understand the mindset of someone who has scaled a company and become a strategic buyer of dozens of companies in the home services space. 

 

On today’s show, Ryan talks to Tommy Mello, the owner of A1 Garage, author of the book Home Service Millionaire, and the host of the Home Service Podcast. Tommy shares how he went from two trucks in 2007 to over $150 million in revenue and over 500 employees through a combination of organic growth as well as strategic acquisitions. 

 

Tommy unpacks how he built A1 Garage into a machine and the various components and KPIs that run the machine. Tommy explains how they predictably scale organically as well as how they apply their internal playbook to companies they acquire within their space, both of which have fueled their exponential growth. 

 

// WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast 

 

What You Will Learn

What data and activities Tommy and his team work on every day and how that is tied to a future EBITDA and equity valuation. 

How Tommy built a team of rock stars that he delegated to without micromanaging them, even though he had problems in the past with trust.

Why it is possible for Tommy to buy a company with $1 million in EBITDA and turn it into $4 million EBITDA within 18 months.

How Tommy intentionally keeps himself in his “zone of genius” and how that keeps his energy and motivation levels high.

How collaborating with the top industry software helped propel A1 into exponential growth. 

The role the industry software plays in acquisitions.

How Tommy thinks about systems and processes and why that was so crucial to him hitting $100 million.

The simple equation Tommy uses to decide what he needs to do every day to hit a certain revenue goal.

What traits Tommy looks for in people that will help him scale.

What a dream manager is and why it can be so crucial for the company culture.