Acquiring Minds: From SBA Loan to High 8-Figure Exit

Episode Date: September 15, 2025

Host: Will Smith

Guest: Jared Pierce, Owner, Olympic Holdings Investments

Overview:

This episode chronicles Jared Pierce’s journey from a challenging childhood to an eye-popping home services business exit approaching $95 million. Jared walks us through buying his first business with an SBA loan, the tenacity required to drive 10x revenue growth, the strategic and personal philosophies that set him apart, and the critical importance of presence and grit. Host Will Smith dives deep into the tactics, mindset, and lessons from both Jared’s massive win and his most recent, humbling business setback.

Key Discussion Points & Insights

1. Jared’s Upbringing and Its Impact

• Background Hardship: Grew up in Seattle and Missoula, often homeless or in foster care due to his mother’s addiction and incarceration.
• Stability and Growth: Found some stability living with a friend’s family, which led to academic and social success.
  • “At the time... as a young kid... it's not as difficult to think about as it is as an adult, but in and out of foster homes up until the age of about 10. And that's when I was in a permanent foster home in Missoula, Montana.” — Jared Pierce (05:55)
• Adaptability: Developed interpersonal skills and resilience due to needing to "fit in" in constant new environments.
  • “You kind of learn how to survive in a non traditional environment...For me...being able to...carry myself as best as possible and get along with people as best as possible.” — Jared (09:38)

2. From College to Private Equity to Harvard Business School (HBS)

• College Path: Attended University of Montana, then Seattle University after reconnecting with his biological father’s family.
• Finance & PE: Internship led to investment banking, proximity to a Black partner at a NYC-based PE firm led to an operational PE role.
• Applying to HBS: Encouraged by mentors in PE, got into Harvard; initially felt some imposter syndrome.
  • “Getting my MBA had occurred to me. But never going to Harvard or, like, Stanford, like an Ivy League, a top business school. That hadn't really occurred to me.” — Jared (15:00)
• Outcome: The “Harvard halo effect” was a major career accelerant.
  • “When you meet other folks...you tell somebody you go to Harvard, they just think you're smart. Whether you are or you aren't, you get this instant level of credibility.” — Jared (20:09)

3. Discovering Acquisition Entrepreneurship

• ETA Coursework: Took Entrepreneur Through Acquisition (ETA) courses at HBS; the idea of operating his own business grew on him.
  • “The idea of taking a business, thinking about it as a team and trying to win as much as possible, I found that part interesting...by the end of my second year, I was leaning towards it more and more.” — Jared (22:54)
• Search Fund vs. Self-Funded: Opted for a self-funded search due to value of equity and greater potential upside.

4. Self-Funded Search: Tactical Deep-Dive

• Selling the House: Used proceeds from a house-hack with friends (bought for $290k, sold for $595k) as his “war chest.”
  • “I knew that I needed cash. So I sold the townhome...I walked away with just, you know, call it $300,000.” — Jared (31:17)
• Local, Proprietary Search: Focused search within two hours of Seattle; exhaustive local networking and direct outreach.
  • “I met so many business owners... probably changed now, but five years ago, I don't think anybody knew more small business owners than me.” — Jared (34:24)
• Tactics:
  • Cold email, then cold call if needed (“lead with an email first, always”).
  • Used Harvard/Olympic Holdings credibility in outreach even when his team was just him and unpaid friends.
  • Paid attention to seller lifestyle as a proxy for the true quality of the business (“What is the owner’s life like? Would I want that?”).

Notable quote:
“I only saw a business that an owner was willing to sell me at a price that I could afford to buy.” — Jared (37:42)

5. Acquiring Mercurios – The H Vac Business

• Selection Criteria: Chose a business where (1) the owner was NOT essential, (2) organization had no single point of failure, (3) owner had a good life not “chained” to the company.
• Deal Terms: $1.75M purchase price on ~$500K SDE, 15 employees, 1993-founded.
  • Structure: Approx. 15% equity (all his cash), 10% seller note, 75% SBA loan.
  • “I did a little bit more than 10%. I think I put 260 grand in. So it was essentially all the cash I had. And then the rest was an SBA loan.” — Jared (59:27)
• No Outside Investors: Kept full equity for himself—critical to the later outcome.

6. From Operator Rookie to $35M Revenue Titan

• Strategy:
  • Obsessive learning of the trade (sales, technical basics, digital marketing).
  • “If any of the sales guys leave, I’ll just do the sales myself...It was really about survival. I need more people, I need more expertise...” — Jared (53:20)
• Tenacity: In the office 7am–7pm every day (yes, even many Saturdays).
• Marketing Innovation: Managed all digital campaigns himself, ramped up spending as returns justified it.
  • Marketing spend: $38K/year before; $1.4M/year at sale.
  • “Our budget when I bought the company...By the time I sold it. Our total marketing budget was 1.4 million.” — Jared (68:02)
• Acquisitions: Bought more HVAC companies and an electrical company to “bolt on.”
• Culture: Modeled “team” leadership, learned in the trenches, built loyalty by example.
  • “I think what helps me as a leader is that folks just saw that I was willing to roll up my sleeves...People within an industry see you taking interest in their trade, in their profession and learning more and more...they appreciated that.” — Jared (75:57)

7. The Blockbuster Exit: Timing, Terms, and Philosophy

• Growth Numbers:
  • Revenue: $3.5M → $35M in 5 years
  • EBITDA: $0.5M → $6.5M+
• Exit Timing:
  • Caught the apex of private equity HVAC fever (late 2022).
  • “I had a $95 million offer...I was pretty close to that at what I sold at.” — Jared (84:36)
• Negotiating Position: Didn’t need or want to sell — strongest bargaining chip.
• Team Rewards: Gave key employees $1M+ from the sale, even when not required.
• Reflection:
  • Instant credibility of the Harvard degree helped.
  • No outside investors meant the windfall was almost entirely his.
  • “The worst that's going to happen is I'm going to be bankrupt. Right. And I've grown up without anything anyways. So I just was looking at it...I was just going to go it, go it alone.” — Jared (61:56)

8. Wealth and Life After the Exit

• Personal Adjustment to Wealth:
  • Still lives relatively modestly; doesn’t “feel rich.”
  • Focused on preserving and growing family wealth, not just spending it.
  • “We have some nice stuff and we have a couple of home...but for us, I just don't feel like I'm as wealthy as I am as paper would show.” — Jared (94:02)
• Family Office: Manages investments in real estate, companies, public equities.
  • Hopes his daughters may one day run the family office.

9. The “Nightmare” Next Acquisition: Humbling Lessons

• Bought a Windows/Doors & Auto Glass Co. (ST Glass), expecting a repeat but faced immediate setbacks.
  • Staff departures, poor processes revealed (“scheduling on paper,” broken accounting, huge overpay on some roles).
  • Revenue fell from $6M to $4M, long months at a loss.
  • Slow to rebound; only recently breaking even after almost a year.
• Biggest Lesson:
  • You must be present. His lack of daily involvement, compared to deep immersion at Mercurios, directly linked to weaker results.
  • “If you are going to buy a company, you have to be present. Like, you have to be there and fully invested and committed to its success more than anybody else...I became obsessed with Mercurios and was all in and it benefited.” — Jared (119:41)
  • A strong team without owner presence isn’t enough, especially in a turnaround or when critical skills have left the business.

10. Reflections on Search, Industry Selection, and Operator Mindset

• Industry Trends:
  • HVAC/private equity roll-up momentum reached its peak ~2022 (“You’re late to like the seller’s expectations...a good business, they're going to want high single digits [EBITDA multiple] for sure”).
  • Other industries (windows, roofing, etc): May not present same recurring revenue, TAM, or tailwinds.
• Opportunity Over Theory:
  • “What trumps being opportunistic trumps everything for me. So if you get a great buy in an industry that's in the ninth inning or the first inning, but you have great transaction dynamics, I would say pursue it.” — Jared (122:59)
• Advice:
  • Get obsessed with ONE business.
  • Presence, hustle, and genuine learning trump resume and theory.
  • Assess seller involvement — don’t buy businesses where profit depends on something the seller does that you can’t/won’t.
  • Beware “balance sheet making you soft” after a big win; presence still matters.

Notable Quotes & Memorable Moments

• On Choosing Which Business to Buy:
  “I only saw a business that an owner was willing to sell me at a price that I could afford to buy.” (37:42)
• On Owner Involvement & Business Quality:
  “I don't like to really buy businesses from people that are too young, because I...if you're able to run this business for 30 years, I feel like, well, it can't be that bad...” (51:29)
• On Grit & Sacrifice:
  “If you are going to buy a company, you have to be present. Like, you have to be there and fully invested and committed to its success more than anybody else.” (119:41)
• On Being Wealthy:
  “I just don't feel like I'm as wealthy as I am as paper would show. And I don't know why that is...Maybe it's because it's still only been a couple of years...” (94:02)
• On What Trumps All:
  “What trumps being opportunistic trumps everything for me. So if you get a great buy in an industry that's in the ninth inning or the first inning...I would say pursue it.” (122:59)

Important Segment Timestamps

• (05:55) – Jared’s early childhood hardship and foster care
• (15:00) – Journey to Harvard Business School
• (22:54) – Discovery of entrepreneurship through acquisition
• (31:17) – Funding the search by house hacking
• (37:42) – Why he picked the business he could afford, not the “perfect” industry
• (59:27) – Details of the SBA self-funded purchase structure
• (68:02) – Ramp-up of marketing spend and its impact
• (84:36) – The $95M offer and summary of the exit
• (94:02) – Weighing wealth and life post-exit
• (119:41) – Why presence matters more than experience
• (122:59) – Evaluating industry opportunity

Overall Takeaways

• Self-funded search can yield truly life-changing outcomes — IF you stay aggressive, flexible, and present.
• Obsession beats delegation, especially for first-time business owners in complex service businesses.
• The most important “competitive advantage” is showing up and learning your business cold.
• Massive upswings often come from timing you can’t control — but preparation and all-in commitment put you in position to benefit from them.
• Your second deal, even with all the experience in the world, can still humble you. Presence, again, is the difference.

For would-be acquirers:

• Scrutinize owner involvement — don’t kid yourself about your “transferable skills.”
• If you can, keep the cap table clean.
• Presence beats theory; don’t expect to simply “manage from afar.”
• Even after a home run, humility is required — your next deal can still be a nightmare.

End of Summary